Soluna Holdings, a developer of renewable-powered green data centers, has announced a major expansion of its flagship project, Kati 1, in Texas following a deal with Galaxy Digital. The agreement will see Galaxy relocate proprietary data center operations from the Helios campus in Texas to a 48 MW extension of the Kati 1 site, bringing the facility’s capacity to 83 MW. Construction is slated to begin by end of August, with operations expected in Q1–Q2 2026.
Project Kati 1 Data Center Factsheet
Location: Texas, USA
Owner/Developer: Soluna Holdings
Partners: Galaxy Digital
Involved Financiers: Spring Lane Capital
Current Capacity: 35 MW
Expansion Size: 48 MW (increasing capacity from 35 MW to 83 MW)
Total Data Center Capacity: 166 MW
Soluna’s Total Fleet Capacity After Expansion: 206 MW
Power Source: Co-located Las Majadas Wind Project, Willacy County, Texas
Construction Start: By End of August 2025
Operations Start: Q1–Q2 2026
Grid Benefits: Monetize surplus energy, stabilize grid, maximize tax credit use
Connection to Las Majadas Wind Farm
Project Kati 1 is co-located with the 273 MW Las Majadas Wind Project, developed by EDF Renewables and Masdar, in Willacy County, Texas. EDF Renewables are one of the largest solar developers in the USA with an installed solar capacity of over 3GW. EDF Renewables have also worked in Nevada and developed the Arrow Canyon Solar+Storage Project Clark County, Nevada
The wind farm has been faced with issues of grid congestion and low off-take from Electric Reliability Council of Texas (ERCOT), leading to wastage of green energy and resultant unclaimed tax incentives. Soluna’s data center, Project Kati 1, now helps come around this problem by taking up the surplus energy. Once operations start, Kati 1 will help stabilize the grid, unlock more tax credit revenue, and also open up investors’ revenue flow from the 273 MW Las Majadas Wind farm.
Project Kati Data Center: June 2025 Milestone
This green data center deal follows Soluna’s June 2025 milestone when the company received $20 million from Spring Lane Capital to finance the first 35 MW phase of Kati 1. The funds enabled the Research & Development (R&D) and build-out of an initial renewable-powered data facility, laying the groundwork for integration with high-performance compute workloads.
Additionally, with Galaxy on board, Project Kati 1 in Texas becomes Soluna’s largest single-partner deployment to date.
Also read: Crusoe Secures Additional $11.6B to Expand AI Data Center Campus in Abilene, Texas
Why Project Kati 1 Matters
The data center, with full capacity of 166 MW, is out to kill two birds with one stone. It will support blockchain and AI workloads and also bolster Texas’ renewable energy economics.
Key Quote
CEO of Soluna, John Belizaire, also underscored this synergy in a statement, saying, “This partnership with Galaxy represents our largest MW deployment to date and underscores how our modular approach delivers efficient, renewable-powered infrastructure at scale.”
Also read: Enbridge Commits $900M to 600 MW Clear Fork Solar Project in Texas to Power Meta’s Data Center
