Soluna Secures US$20m to Build Green Data Centre in Texas
Soluna Holdings has closed a US$20m funding deal with Spring Lane Capital to begin construction of a 35 megawatt 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 develops data centres designed to operate using renewable energy. With demand rising for sustainable high-performance computing infrastructure, this latest project aims to meet the growing need for decentralised AI workloads and large-scale Bitcoin hosting.
John Belizaire, CEO of Soluna, says the funding marks a major milestone for the firm’s strategy 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.”
New site to host 12,000 mining rigs
The Kati 1 facility will support around 12,000 next-generation Bitcoin mining rigs once fully operational.
Construction is scheduled to start in Q3 2025, with energisation and ramp-up expected in Q1 2026.
According to Soluna, all necessary planning approvals have already been secured through the Electric Reliability Council of Texas (ERCOT). 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.
Wider capital support for Soluna pipeline
Alongside the funding for Kati 1, Soluna and Spring Lane Capital have agreed terms that would allow up to US$100m in additional project-level capital to be provided for Soluna’s wider data centre pipeline.
This will support the company’s strategy of building renewable-powered infrastructure for compute-intensive workloads, 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.
As part of the deal, the fund will also offer up to US$4m in development expenditure financing for early equipment purchases. This DevEx support will help secure long-lead items ahead of full construction.
Rob Day, Partner at Spring Lane Capital, explains how the partnership aligns with the firm’s focus on sustainable infrastructure.
“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,” he says. “We’re looking forward to construction getting underway at Project Kati so that Soluna can continue expanding its green computing power.”
Sustainable approach to compute infrastructure
Soluna’s business model revolves around integrating renewable energy into the foundation of high-density computing environments.
Its data centres are designed to operate flexibly alongside intermittent energy sources, such as wind and solar, reducing curtailment and improving grid stability.
By locating its facilities in regions with abundant renewable generation and partnering with capital providers focused on sustainable assets, Soluna is attempting to offer an alternative to traditional colocation models.
The Kati 1 expansion reflects continued investor appetite for infrastructure that can support AI and crypto mining while reducing dependence on fossil-fuel-based power.
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.