BRISCOE COUNTY, Texas — October 24, 2026: Soluna Holdings and Applied Digital signed an agreement on October 20 to form a joint venture developing a 50-megawatt critical-IT AI data center at Soluna’s Project Dorothy 3 site near Silverton, Texas. The companies announced the plan October 21. The facility would draw power from the adjacent Briscoe Wind Farm and the electricity grid, but the joint venture and proposed tenant lease have not yet closed.

Key Takeaways

• The planned first phase provides 50 MW of critical IT capacity, with about 75 MW of gross facility capacity disclosed in Soluna’s SEC filing.
• At closing, Applied Digital would hold 51% of the venture and Soluna 49%.
• ChronoScale has signed a nonbinding letter of intent to lease the facility; definitive agreements and a Briscoe County tax-abatement approval remain outstanding.

A Wind Farm, a Grid Connection, and a Proposed AI Campus

The location is next to the 150 MW Briscoe Wind Farm, near Soluna’s existing Dorothy 1 and Dorothy 2 Bitcoin mining operations. The 150 MW wind figure is generation nameplate capacity, not the proposed building’s IT load, and it does not mean 50 MW of computing can run continuously on wind alone. Soluna says electricity for the first phase is expected to come from both wind generation and the grid.

According to Soluna’s October 21 announcement, the partnership pairs its land and power-related assets with Applied Digital’s capital and data-center development experience. The transaction is expected to close by the end of 2026, subject to local tax-abatement approval, title policies, corporate approvals, and the completion of operating, lease and power agreements.

Soluna’s October 21 statement announcing Dorothy 3 with Applied Digital.

What the SEC Filing Reveals

Soluna’s Form 8-K says an Applied Digital affiliate would contribute approximately $19.52 million in cash, subject to credits for qualifying pre-closing work or equipment purchases. Soluna’s project contribution includes a long-term ground sublease valued at $18.75 million. These are transaction contributions, not the disclosed total cost of building the data center.

The filing refers to the first phase as Dorothy 3A, with roughly 75 MW gross capacity and 50 MW critical-IT capacity. ChronoScale, an Applied Digital majority-owned company, signed only a nonbinding letter of intent for a triple-net lease. No final tenant commitment, construction completion date or operating date was announced in the reviewed documents.

Related CEO interview: Power Analysis discusses the joint venture and the path ahead with Soluna CEO John Belizaire. Interview commentary is separate from executed agreements.

From Mining Facilities to AI Infrastructure

Soluna’s history is rooted in converting underused renewable electricity into mining workloads. BitcoinVersus.Tech previously reported on Soluna’s planned 300 MW Dorothy AI expansion and Bitdeer’s expansion to 35 MW at Soluna’s Project Kati. We also covered Applied Digital’s 1.2 GW North Dakota power agreement. These projects illustrate how expertise in sites, interconnection, power distribution and cooling can serve different kinds of computing.

There is a technical limitation to the analogy: miners can often pause hashing in response to grid prices or curtailment calls, while AI customers may require tighter uptime, network and workload commitments. The project must solve these requirements through its actual engineering and operating contracts—not simply by colocating with wind turbines.

Soluna’s follow-up statement describes its renewable-energy platform and the new partnership.

Additional context: Blockspace interviews Soluna’s CEO about the Applied Digital partnership. Blockspace labels its related coverage a paid partnership; the SEC filing remains the primary verification source.

What Comes Next

The measurable milestones are a completed joint-venture closing, Briscoe County’s tax-abatement decision, executed power arrangements, a binding ChronoScale lease, and a construction and energization timetable. Until then, Dorothy 3A is a development agreement for proposed AI capacity—not an operating 50 MW AI data center.

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