Soluna Holdings and Applied Digital have signed a definitive agreement to form a jointly owned company that would develop a planned 50 MW critical IT data center for AI and HPC in Texas. The site is Project Dorothy 3, near Silverton in Briscoe County, according to Soluna’s Oct. 21 press release.
Power First, Servers Second: Dorothy 3 is planned alongside Briscoe Wind, a 150 MW wind farm. Phase 1 is expected to draw power from both the wind farm and the grid, subject to definitive documentation.
That pairing is the point. Soluna CEO John Belizaire said the constraint in AI is “energy access, not chips,” and that Soluna was built to bring load to the generation.
Splitting the Lunch Pail:
Soluna is expected to contribute part of the site, including land and assets tied to power
Applied is expected to provide capital to support development
After closing, Applied is expected to hold 51% and Soluna 49%
Keeping It in the Family: ChronoScale Holdings signed a nonbinding letter of intent for a triple net lease on the planned facility. ChronoScale is a public company in which Applied holds a majority stake.
So Applied is expected to own a majority of the project company, and it already owns a majority of the prospective tenant. The release notes there’s no assurance a final lease happens, on these terms or at all.
The deal still has to close, and several conditions stand in the way:
Approval of a tax abatement in Briscoe County
Title policies and certain corporate approvals
An operating agreement, definitive leases, power agreements and other customary conditions
Closing is expected by the end of the calendar year.
The site, the wind and a prospective tenant are all in the plan. Now the paperwork has to beat the calendar.
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