Soluna Holdings, Inc. announced on October 21, 2026, that it has entered into a definitive agreement with Applied Digital Corporation to form a jointly owned company. The new entity, referred to as the Project Company, will develop a planned 50 MW critical IT data center designed for artificial intelligence and high-performance computing (HPC). The facility will be located at Project Dorothy 3, Soluna’s development site near Silverton in Briscoe County, Texas.
According to the filing, the project will be co-located with the Briscoe Wind Farm, a 150 MW wind farm. Soluna is expected to contribute a portion of the Dorothy 3 site, including land and power-related project assets, while Applied is expected to provide capital to support the development. Following the closing of the transaction, Applied is projected to hold a 51% interest in the Project Company, with Soluna retaining a 49% interest.
The closing of the transaction is contingent upon the satisfaction of several conditions precedent. These include the approval of a tax abatement for the project in Briscoe County, Texas, the receipt of title policies, obtaining necessary corporate approvals, and the successful negotiation and execution of the operating agreement for the Project Company, as well as definitive leases and power agreements.
The companies expect the transactions to close by the end of the calendar year. Additionally, ChronoScale Holdings Corporation, a publicly traded company majority-owned by Applied, has signed a non-binding letter of intent to lease the planned facility. This lease remains subject to the negotiation and execution of definitive documentation.
