Soluna Holdings has announced a memorandum of understanding with data center developer Metrobloks to jointly develop a large data center dedicated to AI and HPC computing in South Texas.

The first phase of the development, named Project Kati 2, will provide over 100 megawatts of vital IT capacity to the Soluna Project Kati campus, located in Willacy County, close to the town of McAllen. The parties announced the location is intended as the initial phase of a future campus, which could accommodate over 300 megawatts of data center capacity.

Under the proposed partnership arrangement, Soluna and Metrobloks will establish a joint project company that will own and operate the plant. The design and development of the plant will be undertaken by Metrobloks. The project will be jointly financed by Soluna and Metrobloks. They will jointly source third-party financing for their project.

It is built with the purpose of facilitating work related to artificial intelligence and high-performance computing, requiring high density infrastructure with GPU support and abundant power availability. As per the companies, the geographical positioning of the facility, being part of ERCOT, played an integral role in this project.

Soluna’s Project Kati development

Project Kati 2 forms part of Soluna’s Project Kati development, a wind-powered data center campus planned for more than 166 MW of total capacity. Construction on the campus began in September 2025 and will proceed in two phases. The second phase will add an AI and HPC data center, which may also serve other digital infrastructure needs depending on market demand.

The companies reported that the site is currently subject to a non-binding letter of intent with a prospective tenant of Neocloud. The companies are also collaborating with EDF Power Solutions to provide further power supply through the nearby wind farm of Las Majadas.

Metrobloks focuses on high-density AI and low-latency data center projects. Its team has helped develop more than 12 gigawatts of data center capacity worldwide. Project Kati 2 adds to the growing number of AI-focused developments outside the typical Central and West Texas hubs.

Data center development is accelerating in Texas, with large-scale projects expanding beyond traditional tech hubs. Galaxy Digital’s Helios AI Data Center in West Texas recently received ERCOT approval for an additional 830 MW, doubling its total approved capacity and highlighting the rapid growth of AI infrastructure. Meanwhile, Soluna’s Project Kati 2 in South Texas showcases the rising demand for renewable-powered, high-density AI and HPC data centers, reflecting the state’s growing role as a hub for advanced computing infrastructure.

Project Kati 2 Factsheet

Soluna Holdings & Metrobloks Partnership

Partnership Overview

Partners: Soluna Holdings, Inc. and Metrobloks, LLC

Agreement: Memorandum of Understanding (MOU) for co-development partnership

Project: Project Kati 2 (MB MFE-A) – AI and HPC data center facility

Technical Specifications

Initial Phase: 100+ MW Critical IT (CIT) capacity

Expansion Potential: 300+ MW total CIT capacity across full campus

Use Case: AI-ready and high-performance compute (HPC) infrastructure

Power Source: Renewable energy (wind-powered)

Location

Site: Project Kati 2 campus, Willacy County, Texas

Region: South Texas, near McAllen

Grid: ERCOT (Electric Reliability Council of Texas)

Strategic Value: Geographic diversity for southern U.S. deployment

Partnership Structure

Metrobloks Responsibilities:

Design and development

Leasing and customer engagement

Day-to-day operations

Soluna Contributions:

Site control and power entitlements

Electrical equipment

Development expertise

Joint Efforts:

Third-party capital sourcing and structuring

Current Status

Groundbreaking: September 2025

Total Campus: 166+ MW wind-powered, two-phase development

Customer Interest: Non-binding letter of intent from potential neocloud tenant

Power Expansion: Working with EDF Power Solutions for additional capacity from Las Majadas wind farm