Inside Soluna's US$20m Green Data Centre Plans in Texas
Soluna Holdings has secured a US$20m funding arrangement from Spring Lane Capital to initiate the construction of a 35 MW data centre in Texas.
The facility, named Project Kati 1, will form the first phase of a planned 83MW site and will expand Soluna’s green data centre fleet supporting Bitcoin and AI computing.
Soluna's data centres are envisioned to efficiently use renewable energy.
This project aims to meet the growing need for decentralised AI workloads and large-scale Bitcoin hosting.
“Spring Lane Capital has walked alongside Soluna on our path to growth since the beginning with an investment in Project Dorothy,” says John Belizaire, CEO of Soluna.
“These funds will fuel the construction of the first 35 MW of the 83 MW phase of Kati 1, which expands Soluna’s Texas fleet for Bitcoin Hosting.”
New site to host 12,000 mining rigs
Once operational, Kati 1 will accommodate around 12,000 state-of-the-art Bitcoin mining rigs.
Construction is slated to commence in Q3 2025, with the energisation and ramp-up scheduled for Q1 2026.
According to Soluna, all necessary planning approvals have already been secured through the Electric Reliability Council of Texas (ERCOT) and a model update will be submitted to ERCOT at least 90 days prior to energisation.
The deal includes a non-binding term sheet under which Soluna will receive US$20m in funding from Spring Lane Capital. This is expected to fully cover construction costs and working capital.
The financial structure of the agreement follows a similar model to previous funding used on Project Dorothy, including a waterfall structure and enhanced development and management fees.
These terms are designed to generate income for Soluna during both the build and operational stages.
Support for Soluna pipeline
Beyond the Kati 1 investment, Soluna and Spring Lane Capital have established terms for up to US$100m in additional capital to support Soluna’s broader data centre projects.
This infusion aligns with the company’s strategy to develop renewable-powered infrastructure essential for intense compute tasks, including AI models and cryptocurrency mining.
Spring Lane Capital is deploying funds through its second private equity vehicle, Spring Lane Capital Fund II, which is twice the size of its predecessor.
Additionally, the agreement offers up to US$4m for development expenditure, aimed at securing early equipment orders.
Rob Day, Partner at Spring Lane Capital, explains: “We continue to invest in and be strategic supporters of Soluna because they continue to take steps toward sustainable high-performance computing and meeting green data centre demand.
“We’re looking forward to construction getting underway at Project Kati so that Soluna can continue expanding its green computing power.”
Renewable energy for compute infrastructure
Soluna’s operational model integrates renewable energy into high-density computing environments, designed to work in tandem with variable energy sources like wind and solar.
This approach not only reduces curtailment but also enhances grid stability.
By situating facilities in areas rich in renewable generation and aligning with investors dedicated to sustainable resources, Soluna presents an alternative to conventional colocation models.
The company says more details on its roadmap and further phases of the Kati project will be shared later in 2025. For now, with funding secured and approvals in place, Soluna’s next Texas facility is moving ahead on schedule.