Soluna & SLC's US$20m Green Data Centre Investment in Texas
Soluna Holdings has secured a US$20m funding arrangement with Spring Lane Capital, paving the way for the construction of a 35 megawatt renewable-powered data centre in Texas.
Named Project Kati 1, this site is the initial phase of a future 83MW facility aimed at advancing Soluna’s commitment to sustainable computing for Bitcoin and AI. The development represents Soluna’s ongoing effort to create environmentally friendly data centres that cater to growing demand for decentralised AI processing and extensive Bitcoin hosting needs.
According to John Belizaire, CEO of Soluna, acquiring this funding is a crucial step in enhancing their sustainable operations in Texas.
“Spring Lane Capital has walked alongside Soluna on our path to growth since the beginning with an investment in Project Dorothy,” he says. “These funds will fuel the construction of the first 35MW of the 83MW phase of Kati 1, which expands Soluna’s Texas fleet for Bitcoin Hosting.”
Sustainable approach to compute infrastructure
Soluna’s business strategy is entrenched in efficient use of renewable energy for high-density computing environments. Their data centres are built to function along with intermittent energy sources such as wind and solar, thereby minimising energy wastage and enhancing grid stability.
By strategically placing their facilities in areas rich in renewable energy and collaborating with investors focused on sustainable assets, Soluna offers an innovative alternative to conventional colocation models.
The Kati 1 initiative reflects a growing investor interest in infrastructure that supports AI and cryptocurrency processing while decreasing reliance on fossil fuels. Soluna plans to announce further details and subsequent phases of the Kati project in 2025. For now, with financing secured and necessary approvals achieved, construction of the new Texas facility is set to proceed as scheduled.
Mining Bitcoin
The Kati 1 facility is designed to accommodate approximately 12,000 advanced Bitcoin mining rigs when it becomes fully operational. Construction is set to commence in Q3 2025, with energisation and full-scale operations anticipated by Q1 2026.
Soluna has confirmed all essential planning permissions have been obtained from the Electric Reliability Council of Texas (ERCOT). A model update will be filed with ERCOT at least 90 days before the facility begins operations.
The US$20m funding agreement with Spring Lane Capital includes provisions for full coverage of construction and working capital expenses. The financial terms mirror those of previous successful projects, including the Project Dorothy model, ensuring income generation during both the construction and operational stages.
Wider capital support for Soluna pipeline
This partnership also opens opportunities for up to US$100m in additional capital for Soluna’s broader data centre development plans. This strategic financial support confirms the commitment to building renewable-powered infrastructure for high-demand computing tasks, such as AI applications and cryptocurrency mining.
Spring Lane Capital’s investment comes through its second and larger private equity fund, Spring Lane Capital Fund II, reflecting the increasing focus on sustainability-driven projects.
Within the agreement, additional support of up to US$4m for development expenditures will help facilitate early equipment acquisitions, securing pivotal components before full-scale construction begins.
“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 center demand,” said Rob Day at Spring Lane Capital.
“We’re looking forward to construction getting underway at Project Kati so that Soluna can continue expanding its green computing power.”