Soluna Agrees to Form Strategic Partnership with Applied Digital to Develop Wind-Powered AI Data Center in Texas

Facility to be powered by Briscoe Wind Farm; ChronoScale signs letter of intent for triple-net lease

, /PRNewswire/ -- Soluna Holdings, Inc. (Nasdaq: SLNH ) ("Soluna"), a developer of green data centers for intensive computing applications including artificial intelligence ("AI"), today announced that it has entered into a definitive agreement (the "Transaction Agreement") to form a jointly owned company (the "Project Company") with Applied Digital Corporation (NASDAQ: APLD ) ("Applied") to develop a planned 50 MW critical IT data center for AI and HPC (the "Project") at Project Dorothy 3, Soluna's development site near Silverton (Briscoe County) Texas and the Briscoe Wind Farm ("Briscoe Wind").

Soluna Holdings (Nasdaq: SLNH) and Applied Digital (Nasdaq: APLD)

Under the Transaction Agreement, Soluna is expected to contribute a portion of the Dorothy 3 site, including land and power-related project assets, to the Project Company, and Applied is expected to provide capital to support the development of the Project. Following the closing of the transactions contemplated by the Transaction Agreement, Applied is expected to hold a 51% interest in the Project Company, and Soluna is expected to hold the remaining 49% interest.

The closing of the transactions contemplated by the Transaction Agreement is subject to the satisfaction of certain conditions precedent, including the approval of a tax abatement for the Project in Briscoe County, Texas, receipt of title policies, obtaining certain corporate approvals, successful negotiation and execution of the operating agreement for the Project Company, definitive leases, power agreements and other definitive agreements, and other customary conditions. The transactions are expected to close by the end of the calendar year.

"We have said for a long time that the constraint in AI is energy access, not chips," said John Belizaire, CEO of Soluna . "We built Soluna to bring load to the generation, so the power would be ready when the demand arrived. Partnering with Applied at Dorothy 3 puts that strategy to work: our site and wind power, combined with a proven builder and operator of AI data centers. We look forward to completing the remaining steps, including the tax abatement process in Briscoe County, and to bringing this project forward with the local community."

Project Dorothy 3

Dorothy 3 is a planned AI data center co-located with Briscoe Wind, a 150 MW wind farm in Briscoe County, Texas, near Soluna's Dorothy 1 and Dorothy 2 projects. Subject to definitive documentation, Phase 1 of Dorothy 3 (50 MW Critical IT) is expected to draw power from both Briscoe Wind and the grid.

ChronoScale Letter of Intent

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

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