Soluna and Applied Digital have signed a definitive agreement to develop a 50MW data center in Briscoe County, Texas, marking another step in the shift from cryptocurrency mining infrastructure toward AI computing. The project will sit at Soluna’s Project Dorothy 3 development site near Silverton, close to the company’s Briscoe Wind Farm. Applied Digital’s AI cloud spin-out, ChronoScale, has signed a non-binding letter of intent to lease the planned facility. The proposed partnership brings together Soluna’s land and power-related assets with Applied Digital’s development capital, creating a structure designed to support growing demand for energy-intensive AI workloads.

Project Dorothy 3 Combines Wind Power With AI Infrastructure

The first phase will deliver 50MW of critical IT capacity, drawing electricity from both the neighboring Briscoe Wind Farm and the grid. Soluna expects to contribute part of the Dorothy 3 site, including land and power-related project assets, to a jointly owned project company, while Applied Digital expects to provide development capital. Applied Digital will hold a 51% stake in the joint venture, with Soluna retaining the remaining 49%. Although the initial phase targets 50MW, the wider site could reach 300MW at full build-out, giving the partnership room to expand as demand and project conditions evolve.

The agreement remains subject to closing conditions, including approval of a tax abatement for the project, and the companies expect to complete the transaction by the end of 2026. That approval represents a key outstanding step for the development, linking the project’s progress to local government processes. The companies have not yet announced a binding lease agreement with ChronoScale, whose current letter of intent remains non-binding. Nevertheless, the proposed arrangement connects a potential AI cloud tenant with a development that already has a defined power strategy and a planned initial capacity.

Soluna’s Energy-First Strategy Moves Beyond Crypto Mining

Soluna CEO John Belizaire framed the partnership around electricity availability as a defining challenge for AI infrastructure development. “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.”

The project builds on Soluna’s existing presence around Silverton, where its Dorothy I and Dorothy II campuses support cryptocurrency mining operations that rely largely on power from the neighboring wind farm. Dorothy I A and B together provide 50MW, while Dorothy II offers 48MW. In April, Soluna acquired the 150MW Briscoe Wind Farm for $53 million, strengthening its position at the intersection of power generation and computing demand. The company also acquired 400 acres of land for Project Dorothy 3 in August, establishing a site for its planned expansion into AI data center infrastructure.

Applied Digital Adds to Its Expanding AI Capacity Portfolio

Soluna’s broader business reflects a transition from renewable-powered cryptocurrency mining toward serving the needs of AI computing. The company reports more than 200MW of total operational capacity across five sites, alongside eight additional data center sites in various stages of development that collectively represent more than 1.5GW. This development pipeline positions Dorothy 3 within a larger effort to convert access to renewable energy into infrastructure for digital workloads. However, the scale of that pipeline should not be confused with operating capacity, as projects in development still require further execution.

Applied Digital, meanwhile, has leases covering approximately 1.41GW of critical IT load across five campuses: Polaris Forge 1, Polaris Forge 2 and Polaris Forge 3 in North Dakota, Delta Forge 1 in Louisiana, and Delta Forge 2 in Alabama. Its first two buildings at Polaris Forge 1, representing approximately 250MW, are already live. The proposed Texas joint venture would add another development opportunity to this portfolio, although its completion and ChronoScale’s eventual occupancy remain subject to the relevant agreements and conditions.

The Dorothy 3 proposal highlights a strategic consideration for AI infrastructure developers: securing power and suitable sites can shape where computing capacity takes form. By combining wind generation, grid access, land and development capital, Soluna and Applied Digital aim to establish a pathway for additional AI capacity in West Texas. The initial 50MW phase offers a defined starting point, while the potential 300MW build-out provides a longer-term development target. The project’s next milestones will depend on closing the joint-venture agreement, obtaining the required tax abatement and advancing ChronoScale’s proposed lease into a binding commitment.