Soluna agrees to form Applied Digital venture for 50 MW AI data center in Texas

Soluna said on October 21, 2026, that it has entered into a definitive agreement to form a jointly owned company with Applied Digital Corporation (NASDAQ: APLD). Soluna said the jointly owned company is expected to develop a planned 50 MW data center for AI and high-performance computing at Project Dorothy 3, Soluna's development site near Silverton in Briscoe County, Texas.

Soluna said it expects to contribute part of the Dorothy 3 site, including land and power-related project assets, to the jointly owned company. Soluna said Applied Digital is expected to provide capital to support development of the project.

Soluna said Applied Digital is expected to hold a 51% interest in the jointly owned company after closing, and that it is expected to hold the remaining 49%. The closing of the transactions is subject to conditions including approval of a tax abatement for the project in Briscoe County, receipt of title policies, certain corporate approvals, negotiation and execution of an operating agreement, definitive leases, power agreements and other definitive agreements, and other customary conditions.

Soluna said the transactions are expected to close by the end of the calendar year. Dorothy 3 is planned as a data center co-located with Briscoe Wind, a 150 MW wind farm in Briscoe County near Soluna's Dorothy 1 and Dorothy 2 projects. Soluna said that, subject to definitive documentation, Phase 1 of the 50 MW data center is expected to draw power from both Briscoe Wind and the grid.

ChronoScale Holdings Corporation (Nasdaq: CHRN), a publicly traded accelerated compute platform majority-owned by Applied Digital, has signed a non-binding letter of intent to lease the planned facility. The lease remains subject to negotiation and execution of definitive documentation, and Soluna said there can be no assurance that a definitive lease will be entered into on the terms of the letter of intent, or at all.