Soluna Holdings, through a subsidiary, has entered into a definitive joint venture agreement with DC Kati Venture LLC (Metrobloks) on June 3, 2026, to develop and operate a multi-phase data center, 'Project Kati 2,' in Willacy County, Texas. This project formalizes a strategic partnership to build significant new data center capacity.
Key Details
- Project Scope: The project will be developed in two phases: Phase I will be a 100 MW data center, and Phase II will add an additional 250 MW, for a total of 350 MW.
- Soluna's Capital Commitment: Soluna has contributed property and funded approximately $3.5 million in initial operating expenses. The company has also committed to fund approximately $19.0 million for the acquisition of the Phase II property and up to an additional $2.0 million for operating expenses.
- Financial Structure: Under the agreement, Soluna will first receive repayment of its capital contributions, a 14% IRR, and a payment of $100,000 per Gross PPA MW. Subsequent distributions will be split 50/50 between Soluna's subsidiary and Metrobloks.