Soluna and Applied Digital agree 50MW Texas data center joint venture

Soluna and Applied Digital have signed a definitive agreement to build a 50MW data center in Briscoe County, Texas. The capacity at Soluna's Project Dorothy 3 site, near Silverton, is earmarked for Applied's AI cloud spin-out ChronoScale, Data Center Dynamics reported this week.

Applied is expected to hold 51% of the joint venture and provide the capital; Soluna is expected to contribute part of the Dorothy 3 site, including land and power-related project assets. Closing is targeted for the end of the year and is subject to conditions, including approval of a tax abatement for the project.

Phase I is 50MW of critical IT load drawing from both the Briscoe Wind Farm and the grid. Soluna says the site could reach 300MW at full build-out. The company bought Briscoe Wind in April for $53 million and acquired the 400 acres behind Dorothy 3 in August. Its two operating Dorothy campuses near Silverton — Dorothy I A and B at 50MW and Dorothy II at 48MW — run crypto mining load and are largely powered by the neighboring wind farm. Across five sites Soluna reports more than 200MW operational and eight more sites in development totaling more than 1.5GW.

ChronoScale has signed a non-binding letter of intent, not a lease, and holds no equity in the joint venture. ChronoScale posted Q1 2027 revenue of $41.5 million, a net loss of $26.4 million and adjusted EBITDA of $5.9 million this month.

Applied's Polaris Forge 1 campus at Ellendale, North Dakota, operates 250MW of a planned 400MW, all leased to CoreWeave, as this publication has reported. ChronoScale, the expected tenant here, is Applied's own spin-out and has signed only a non-binding letter of intent.

John Belizaire, Soluna's chief executive, said: "We have said for a long time that the constraint in AI is energy access, not chips." He described the partnership as pairing Soluna's site and wind power with a builder and operator of AI data centers, and pointed to the Briscoe County tax abatement as one of the remaining steps.