Soluna has announced the scheduled groundbreaking of Project Kati, its largest facility to date, set for September 18, 2025, in Willacy County, Texas. The development is planned to deliver 166 megawatts (MW) of clean computing capacity in two phases, beginning with 83 MW expected to come online in early 2026. Developed in partnership with EDF Renewables, Masdar, and Spring Lane Capital, Project Kati will support both Bitcoin hosting operations and the growing demand for artificial intelligence (AI) and high-performance computing (HPC) infrastructure.
The facility will be built in two stages. Kati 1, the first phase, will focus on Bitcoin hosting with Galaxy secured as the anchor customer, accounting for 48 MW of capacity, while the remaining 35 MW will be allocated to Soluna’s own hosting operations. Kati 2, the second phase, will add another 83 MW, doubling total site capacity to 166 MW and broadening the facility’s scope to include AI and HPC workloads. This phased approach enables Soluna to meet current customer demand while strategically scaling its platform for next-generation computing needs.
Galaxy Digital Inc. recently secured a $1.4 billion project financing facility to accelerate the development of Helios AI data center campus in West Texas.
“Breaking ground on our biggest project yet expands our Texas footprint, strengthens partnerships with leading renewable developers, and proves our colocation model of pairing high-performance computing with clean energy at utility scale,” said John Belizaire, CEO of Soluna. The groundbreaking ceremony is expected to bring together community leaders, partners, and stakeholders to celebrate a project that promises new jobs, investment, and long-term economic impact for Willacy County, while positioning Soluna for sustained growth across Bitcoin hosting and AI infrastructure.
Project Kati Factsheet
Location: Willacy County, Texas
Developer: Soluna
Partners: EDF Renewables, Masdar, Spring Lane Capital
Groundbreaking Date: September 18, 2025
Capacity: 166 MW (two phases)
Completion Timeline: Phase 1 in early 2026; Phase 2 to follow
Project Overview
Purpose: Dual-purpose facility designed for Bitcoin hosting, AI, and high-performance computing (HPC) workloads.
Clean Energy Model: Pairs high-performance computing with renewable energy at utility scale.
Economic Impact: Job creation, local investment, and long-term growth in Willacy County.
Phased Development
Kati 1 – Bitcoin Hosting (83 MW)
Online: Early 2026
Customers: Galaxy (48 MW), Soluna’s own hosting (35 MW)
Kati 2 – AI & HPC Infrastructure (83 MW)
Online: To follow after Phase 1
Expands total site capacity to 166 MW
Supports AI and HPC workloads alongside Bitcoin hosting
Connection to Las Majadas Wind Farm
Project Kati is co-located with the 273 MW Las Majadas Wind Project (operational since 2021) in Willacy County, Texas, developed by EDF Renewables and Masdar. Under a behind-the-meter power purchase agreement (PPA), Soluna will buy up to 166 MW of clean energy from Las Majadas to power Project Kati. The PPA includes provisions for curtailing operations during certain grid conditions to manage transmission constraints.
The co-location helps address known challenges of renewable energy generation such as curtailment (i.e. times when generation must be reduced because transmission or demand cannot absorb it). By having a large flexible computing load (Project Kati), Soluna aims to use more of the wind farm’s output that might otherwise go unused, which can improve efficiency and potentially maximize the benefits from tax credits for renewable generation.
While the potential exists for positive impacts like stabilizing the grid and improving returns on investment for Las Majadas, the specific effects on tax incentives, investor returns, and grid stabilization will depend on operational details, regulatory treatment, and how often curtailment or transmission constraints occur.
Project Kati Data Center: June 2025 Milestone
In June 2025, Soluna secured a $20 million financing commitment from Spring Lane Capital to fund the first 35 megawatts (MW) of Project Kati 1. The capital supported the early build-out and development of this renewable-powered data facility, laying the groundwork for future integration with high-performance computing workloads.
Additionally, by August 2025, Soluna had expanded its partnership with Galaxy Digital, securing Galaxy as the anchor customer for 48 MW of capacity at Project Kati 1. This agreement marked Soluna’s largest single-partner deployment to date, underscoring the project’s scale and significance within the company’s portfolio.
Also read: Crusoe Secures Additional $11.6B to Expand AI Data Center Campus in Abilene, Texas
Why Project Kati 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
