Soluna Strengthens Texas Presence with New 120MW Wind-Powered Data Center Project

Rhea-AI Summary

Soluna Holdings (NASDAQ: SLNH) has signed a term sheet for Project Hedy, a new 120 MW data center co-located with a 200 MW wind farm in South Texas. The project, developed in partnership with a multinational conglomerate focused on sustainable infrastructure, will be built in two 60 MW phases to power Bitcoin mining, AI, and machine learning workloads.

Project Hedy will support grid stability in ERCOT and is expected to bring Soluna's total data center capacity to 598 MW in operation, construction, or development. The company currently operates multiple facilities including Dorothy 1A and 1B (25 MW each), Sophie (25 MW), with additional projects under construction like Dorothy 2 (48 MW) and others in development including Grace, Kati, and Rosa.

Positive

• Significant capacity expansion with 120 MW new data center project
• Strategic partnership with multinational conglomerate for renewable energy supply
• Diversified revenue streams across Bitcoin mining, AI, and machine learning
• Growing operational portfolio with 598 MW total capacity in various stages

Negative

• Project still requires finalizing definitive power purchase agreements
• Pending land agreements and ERCOT planning process completion
• Phased development approach may delay full capacity realization

Insights

Energy Infrastructure Analyst

Soluna's new 120MW Project Hedy represents a significant expansion of their renewable energy-powered computing strategy. The co-location model with a 200MW wind farm creates a compelling value proposition by harnessing excess wind energy that might otherwise be curtailed. This approach solves a critical problem in renewable energy markets – the mismatch between generation and demand.

The phased development approach (two 60MW phases) demonstrates prudent scaling while the Texas location is strategically valuable. ERCOT's market structure allows Soluna to potentially monetize both computing workloads and grid services through demand response participation. By providing flexible load that can ramp up during excess generation periods, Soluna effectively functions as a "shock absorber" for grid stability.

What's particularly notable in Soluna's expanding portfolio is the scale transformation. With Project Hedy, their development pipeline reaches 598MW – a substantial increase from their current 75MW operating capacity. The partnership with a multinational conglomerate specializing in sustainable infrastructure adds credibility to this expansion.

The dual capability to handle both cryptocurrency and AI workloads provides operational flexibility, allowing Soluna to adjust its computing mix based on market economics. With data centers becoming increasingly power-constrained globally, this renewable-powered approach positions Soluna favorably in the growing market for sustainable computing resources.

Data Center Technology Analyst

Soluna's Project Hedy announcement signals a strategic positioning at the intersection of two high-growth computing markets. By developing facilities capable of handling both Bitcoin mining and AI/ML workloads, they're creating an adaptable infrastructure that can pivot between these demanding applications based on market conditions.

The facility's design as a flexible computing load paired with renewable energy is particularly significant as AI workloads continue their exponential growth trajectory. Traditional data centers face increasing power constraints, while Soluna's approach taps into otherwise underutilized renewable capacity. This model potentially provides a competitive advantage in acquiring power – often the most significant constraint for AI infrastructure scaling.

Examining their project portfolio reveals a thoughtful diversification strategy across multiple sites in Texas and Kentucky, with most leveraging wind power. The 598MW total capacity (operational, construction, and development) represents significant scale in the specialized high-performance computing sector.

What distinguishes this approach is how it transforms an intermittency challenge (variable wind generation) into an operational advantage. By using computing workloads that can scale with available power, Soluna creates a symbiotic relationship between renewable generation and computing demand. This positions them favorably in a computing landscape increasingly defined by power availability rather than traditional data center metrics. For energy-intensive applications like cryptocurrency mining and AI training, this renewable-first approach addresses both operational and sustainability requirements.

Signed Term Sheet Expected to Unlock Scalable, Sustainable Computing in Cameron County with Project Hedy

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“Soluna” 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 a term sheet for power for Project Hedy, a new 120 MW data center co-located with a 200 MW wind farm in South Texas.

Soluna's Project Hedy Expected to Unlock Scalable, Sustainable Computing in Cameron County, TX

The wind farm is owned by a new power partner–a multinational conglomerate that focuses on developing and managing sustainable infrastructure solutions, with a strong emphasis on renewable energy, water management, and services, aiming to contribute to a low-carbon economy and a better planet.

This agreement marks a significant milestone in Soluna’s mission to integrate computing with renewable energy. Project Hedy will be developed in two 60 MW phases, strategically leveraging excess wind energy to power Bitcoin mining, AI, and machine learning workloads while supporting grid stability in the Electric Reliability Council of Texas, Inc. (ERCOT).

With Project Hedy, Soluna is expected to have over 598 MW of data center capacity in operation, construction, or development.

Project	Location	Power Source	Size (MW)	Model	Status
Dorothy 1A	TX	Wind	25	BTC Hosting	Operating
Dorothy 1B	TX	Wind	25	BTC Mining	Operating
Sophie	KY	Grid	25	BTC Hosting	Operating
Dorothy 2	TX	Wind	48	BTC Hosting	Construction
Grace	TX	Wind	2	AI Hosting/Cloud	Development
Kati	TX	Wind	166	BTC Hosting / AI	Shovel Ready
Rosa	TX	Wind	187	BTC Hosting / AI	Development
Hedy	TX	Wind	120	BTC Hosting / AI	Development

“This is another step forward in proving that flexible, large-scale computing can help renewable energy assets reach their full potential,” said John Belizaire, CEO of Soluna Holdings, Inc. “We’re excited to partner with and leverage the exceptional wind resources of Cameron County to power sustainable AI and Bitcoin mining at scale.”

“In an environment where there is an ever-growing need for sustainable energy to power AI, we are one of the few companies using an innovative approach to unlock this precious resource,” continued Belizaire.

With Project Hedy, Soluna continues its tradition of naming projects after women who have made significant contributions to science and technology. The project is named after Hedy Lamarr, the Austrian-American inventor and actress whose pioneering work in frequency-hopping technology laid the foundation for modern wireless communication.

As Soluna progresses with Project Hedy, the company will focus on finalizing definitive power purchase agreements, land agreements, and the ERCOT planning process.

For more information, visit www.solunacomputing.com

Soluna’s glossary of terms can be found here.

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. Other examples of forward-looking statements may include, but are not limited to, statements of Soluna’s plans and objectives, including with respect to the development of Project Hedy and our expectations with respect to the amount of renewable energy capacity Project Hedy will deliver. Soluna may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), 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 SEC. 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. (Nasdaq: 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 and follow us on:

LinkedIn: https://www.linkedin.com/company/solunaholdings/
X (formerly Twitter): x.com/solunaholdings
YouTube: youtube.com/c/solunacomputing
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Resource Center: solunacomputing.com/resources

View source version on businesswire.com: https://www.businesswire.com/news/home/20250408423645/en/

Cybele Ramirez

Director, Marketing

Soluna Holdings, Inc.

ir@soluna.io

Source: Soluna Holdings, Inc.

FAQ

What is the total capacity of Soluna's Project Hedy in Texas and how will it be developed?

Project Hedy is a 120 MW data center that will be developed in two 60 MW phases, co-located with a 200 MW wind farm in South Texas.

How much total data center capacity will SLNH have after Project Hedy's completion?

With Project Hedy, Soluna (SLNH) is expected to have over 598 MW of data center capacity in operation, construction, or development.

What are the primary applications for Soluna's Project Hedy data center?

Project Hedy will power Bitcoin mining, AI, and machine learning workloads while supporting grid stability in ERCOT.

How many operational facilities does SLNH currently have in Texas?

SLNH currently operates Dorothy 1A and Dorothy 1B in Texas, each with 25 MW capacity for BTC hosting and mining respectively.