Soluna Holdings, Inc. (Nasdaq: SLNH), a developer of green data centers for intensive computing applications including artificial intelligence, announced on October 21, 2026, that it has entered into a definitive agreement with Applied Digital Corporation (NASDAQ: APLD) to form a jointly owned company to develop a planned 50 MW critical IT data center for AI and HPC at Project Dorothy 3, Soluna's development site near Silverton in Briscoe County, Texas, adjacent to the Briscoe Wind Farm.

Under the Transaction Agreement, Soluna is expected to contribute a portion of the Dorothy 3 site, including land and power-related project assets, to the Project Company, while Applied is expected to provide capital to support the development of the Project. Following the closing of the transactions, Applied is expected to hold a 51% interest in the Project Company, with Soluna holding the remaining 49%.

Closing Conditions and Timeline

The closing is subject to a number of conditions precedent, including approval of a tax abatement for the Project in Briscoe County, Texas, receipt of title policies, obtaining certain corporate approvals; and the successful negotiation and execution of the operating agreement for the Project Company, definitive leases, power agreements, and other definitive agreements, along with other customary conditions. The transactions are expected to close by the end of the calendar year.

Powering the Project

Dorothy 3 is a planned AI data center co-located with Briscoe Wind, a 150 MW wind farm in Briscoe County, Texas, near Soluna's existing Dorothy 1 and Dorothy 2 projects. Subject to definitive documentation, Phase 1 of Dorothy 3, comprising 50 MW of critical IT capacity, is expected to draw power from both Briscoe Wind and the grid.

John Belizaire, CEO of Soluna, framed the partnership as the realization of the company's longstanding approach to siting data centers. "We have said for a long time that the constraint in AI is energy access, not chips," Belizaire said.

"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."

Belizaire added that Soluna looks forward to completing the remaining steps, including the tax abatement process in Briscoe County, and to bringing the project forward with the local community.

ChronoScale Letter of Intent

Alongside the joint venture announcement, ChronoScale Holdings Corporation (Nasdaq: CHRN) has signed a non-binding letter of intent to lease the planned facility. ChronoScale is an accelerated compute platform purpose-built to support demanding AI workloads and is a publicly-traded company majority-owned by Applied Digital.

The lease remains subject to the negotiation and execution of definitive documentation. According to the announcement, there can be no assurance that a definitive lease will be entered into on the terms contemplated by the letter of intent, or at all.

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