Soluna Signs Term Sheet with Renewable Energy Leader for New Data Center Project

Rhea-AI Summary

Soluna Holdings (NASDAQ: SLNH) has signed term sheets for Project Rosa, a new 187 MW data center co-located with a 240 MW wind farm in Texas. The project, to be developed in two phases on 60 acres, will harness renewable energy for AI, machine learning, and Bitcoin hosting. This strategic move aligns with Soluna's mission to utilize excess renewable energy for sustainable, low-cost data centers. CEO John Belizaire emphasized the project's significance in growing their HPC and Bitcoin data center business. Named after chemist Rosalind Franklin, Project Rosa represents a substantial increase in Soluna's shovel-ready momentum. Next steps include finalizing power purchase agreements, land agreements, and completing the ERCOT planning phase.

Positive

• Secured term sheets for a large-scale 187 MW data center project
• Strategic co-location with a 240 MW wind farm for direct access to renewable energy
• Acquired 60 acres of land for project development
• Potential for joint venture opportunities
• Aligns with company's mission to utilize excess renewable energy

Negative

• Project still in early stages, with definitive agreements yet to be completed
• Execution risks associated with large-scale project development
• Potential capital requirements for project implementation not disclosed

Insights

Financial Analyst

Soluna's Project Rosa represents a significant expansion of the company's data center capacity, potentially boosting its revenue streams. The 187 MW capacity is substantial, positioning Soluna to capitalize on the growing demand for AI and Bitcoin mining infrastructure. However, investors should note that this is still in the term sheet stage, with several steps remaining before becoming operational.

The project's strategic co-location with a wind farm aligns with the increasing focus on sustainable energy in the tech sector, potentially attracting environmentally conscious clients and investors. This could provide a competitive edge in the market. The phased approach to development suggests a measured risk management strategy, which is prudent given the volatility in both renewable energy and cryptocurrency markets.

Tech Expert

Project Rosa's focus on AI, machine learning and Bitcoin hosting positions Soluna at the intersection of two rapidly growing tech sectors. The 187 MW capacity is significant, potentially allowing Soluna to host a substantial number of AI models or Bitcoin mining rigs. The emphasis on renewable energy is particularly noteworthy, as it addresses the growing concern over the energy consumption of these compute-intensive applications.

The project's scalability and low-cost structure could make it attractive to a wide range of clients, from AI startups to established crypto mining operations. However, the success of this venture will depend heavily on the stability of the renewable energy supply and Soluna's ability to efficiently manage and allocate computing resources across different applications.

Market Research Analyst

The announcement of Project Rosa indicates Soluna's strategic move to expand its market share in the growing data center industry, particularly in the niche of renewable energy-powered facilities. This aligns with the increasing demand for sustainable computing solutions, driven by both corporate ESG initiatives and regulatory pressures.

The location in Texas is noteworthy, as the state has been attracting significant data center investments due to its favorable energy policies and growing tech ecosystem. However, investors should consider the potential risks associated with Texas's power grid stability, especially in light of recent extreme weather events. The project's success will likely depend on Soluna's ability to navigate local regulations, secure long-term clients and effectively manage the intermittent nature of wind power.

Project Rosa Boosts Soluna’s Capacity with 187 MW of Sustainable Energy for AI and Bitcoin Mining

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including Bitcoin mining and AI, announced today that it has signed term sheets for power and land for Project Rosa, a new 187 MW Data Center indicating an important step forward in the Company’s expansion efforts.

Soluna's Data Centers (Graphic: Business Wire)

Project Rosa will be strategically co-located with a 240 MW wind farm in Texas, enabling the project to directly harness a substantial share of renewable energy. Soluna has secured 60 acres of land for this project's development, an important milestone in its journey to shovel readiness.

The project will be executed in two phases. Upon completion, Project Rosa is poised to provide up to 187 MW of data center capacity for AI, machine learning, Bitcoin hosting, and other computing-intensive applications, as well as joint venture potential.

This project aligns with Soluna’s ongoing mission to utilize excess renewable energy and create sustainable, scalable, low-cost data centers for next-generation workloads.

“We are excited to launch Project Rosa and continue our momentum in developing the future with Renewable Computing,” said John Belizaire, CEO of Soluna Holdings. “This project represents a significant increase in our shovel-ready momentum as we grow our HPC and Bitcoin data center business.”

With Project Rosa, Soluna continues its tradition of naming its data centers after women who have made significant contributions to science and technology. The project is named after Rosalind Franklin, a chemist whose work was central to understanding the molecular structures of DNA, RNA, and viruses.

As Soluna progresses with Project Rosa, it will be focused on: completing definitive power purchase agreements, land agreements, and the ERCOT planning phase.

For more information on Soluna and its projects, please visit solunacomputing.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

About Soluna Holdings, Inc (SLNH)

Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops, and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute-intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit solunacomputing.com. Follow us on X (formerly Twitter) at @SolunaHoldings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240916477316/en/

Sam Sova

Partner and CEO

SOVA

Sam@letsgosova.com

Source: Soluna Holdings, Inc.

FAQ

What is Project Rosa and how much capacity will it provide for Soluna Holdings (SLNH)?

Project Rosa is a new data center development by Soluna Holdings (SLNH) that will provide up to 187 MW of capacity for AI, machine learning, Bitcoin hosting, and other computing-intensive applications.

Where will Soluna's Project Rosa be located and what renewable energy source will it use?

Project Rosa will be strategically co-located with a 240 MW wind farm in Texas, enabling it to directly harness renewable wind energy for its operations.

How much land has Soluna (SLNH) secured for Project Rosa?

Soluna Holdings (SLNH) has secured 60 acres of land for the development of Project Rosa.

What are the next steps for Soluna (SLNH) in developing Project Rosa?

Soluna (SLNH) will focus on completing definitive power purchase agreements, finalizing land agreements, and completing the ERCOT planning phase for Project Rosa.