Another AI data center is heading to Texas, this one built next to a wind farm. Soluna Holdings (Nasdaq: SLNH) said on Wednesday, Oct. 21, 2026 that it signed a definitive agreement with Applied Digital (Nasdaq: APLD) to form a jointly owned company that will develop a planned 50 MW critical IT data center for AI and high-performance computing at Project Dorothy 3, its site near Silverton in Briscoe County, Texas. Soluna also filed the announcement with the SEC in an 8-K.
The deal
Soluna is expected to contribute part of the Dorothy 3 site, including land and power-related assets, and Applied Digital is expected to provide capital. After closing, Applied is expected to own 51 percent of the project company and Soluna 49 percent. Phase 1 is expected to draw power from both the 150 MW Briscoe Wind Farm and the grid, subject to final documents.
ChronoScale Holdings (Nasdaq: CHRN), an AI compute company majority-owned by Applied Digital, signed a non-binding letter of intent to lease the facility on a triple-net basis. Soluna cautions there is no assurance a final lease will be signed.
Not done yet
Closing depends on several conditions, including approval of a tax abatement in Briscoe County, title policies, corporate approvals, and signed leases and power agreements. The companies expect to close by the end of the calendar year.
"We have said for a long time that the constraint in AI is energy access, not chips," Soluna CEO John Belizaire said in the release.
What it means for Tesla
Power is now the bottleneck AI builders talk about most, the same issue behind President Trump's Oct. 21 call for data centers to make their own electricity. Read our story on Trump's data center power post.