Soluna and Applied Digital are to develop a data center in Texas, with Applied Digital’s AI cloud spin-out ChronoScale set to lease the capacity.

The Nasdaq-listed companies this week announced that they have signed a definitive agreement for a jointly owned company to develop a 50MW data center at Soluna’s Project Dorothy 3 development site near Silverton, Briscoe County, close to the company’s 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, and Applied is expected to provide capital to support the development of the Project.

Phase I of Dorothy 3 (50MW Critical IT) is expected to draw power from both Briscoe Wind and the grid. The site could total 300MW at full build-out.

ChronoScale, the Nasdaq-listed AI cloud firm spun off from Applied Digital, has signed a non-binding letter of intent to lease the planned facility.

Applied is expected to hold a 51 percent interest in the joint venture, and Soluna is expected to hold the remaining 49 percent interest.

Expected to close by the end of the year, the agreement is subject to certain conditions, including approval of a tax abatement for the project.

"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."

Soluna has two existing Dorothy campuses around Silverton that are dedicated to mining crypto and are largely powered by the neighboring wind farm. The company acquired the Briscoe Wind Farm in April for $53 million, and acquired 400 acres of land for Dorothy 3 in August.

Soluna is a cryptocurrency mining firm that utilizes renewable energy projects as its primary power source, and it is moving into AI data centers. The company has more than 200MW of total operational capacity across five sites and another eight data center sites in various stages of development totaling more than 1.5GW.

Dorothy I A and B total 50MW, while Dorothy II offers 48MW.

Applied and ChronoScale post results

ChronoScale also posted its Q1 2027 results this month. The company posted quarterly revenues of $41.5m. Net loss for the quarter was $26.4m and adjusted EBITDA was $5.9m.

During the quarter, the company signed a 50MW computing deal with Microsoft. The deployment will be for Nvidia’s GB300 NVL72 hardware.

The firm also signed a contract extension with an existing AI infrastructure customer and an agreement with a new AI infrastructure customer. ChronoScale said these deals will take the company’s annual revenues to $1 billion by Q3 2027.

ChronoScale also announced the completion of the sale of its Ekso Bionics business unit. ChronoScale had merged with the firm to take its place on Nasdaq.

As of the end of August, the company had $15.2m in cash and cash equivalents.

ChronoScale says its capacity pipeline totals 2.9GW across nine locations across the US, Europe, and APAC. Its first sites are due live in early 2027.

Applied Digital, meanwhile, posted revenues of $341.9m. Net loss was $221m and Adjusted EBITDA was $64.4m.

To date, Applied has leases for approximately 1.41 GW of critical IT load across five campuses in place: Polaris Forge 1, 2, and 3 in North Dakota; Delta Forge 1 in Louisiana; and Delta Forge 2 in Alabama. The first two buildings, totaling around 250MW, are live at Polaris Forge 1.