Soluna Holdings partners with Applied Digital for 50 MW AI data center in Texas

Soluna Holdings and Applied Digital want to build a 50 MW data center for artificial intelligence in the Texas Panhandle. A third company, ChronoScale Holdings, already intends to lease it. The two Nasdaq-listed firms announced the plan on October 21, 2026. How the deal is structured Soluna (Nasdaq: SLNH) and Applied Digital (Nasdaq: APLD) plan to form a jointly owned project company. That entity would develop a 50 MW facility built for AI and high-performance computing, or HPC. The project is called Project Dorothy 3, located in Briscoe County, Texas. It would draw renewable power from the neighboring 150 MW Briscoe Wind Farm, with the electrical grid as an additional source. The ownership split is close to even, but not quite. Applied Digital would hold a 51% interest and manage the venture. Soluna would contribute land and related power assets in exchange for a 49% stake. The tenant, and the fine print ChronoScale Holdings Corporation has signed a non-binding letter of intent for a triple-net lease on the facility. Under a triple-net structure, the tenant typically covers property taxes, insurance and maintenance on top of rent. There is a notable wrinkle. ChronoScale is majorit...