Soluna Holdings, Inc. (NASDAQ: SLNH) and Metrobloks, LLC have entered into a Memorandum of Understanding to jointly develop Project Kati 2, a 100‑megawatt critical‑IT AI and high‑performance computing data center on Soluna’s Willacy County, Texas campus. The first phase will deliver a 100‑MW AI/HPC facility, with plans to expand the campus to more than 300 MW of critical‑IT capacity as demand grows.
The partnership creates a joint project company that will own and operate Project Kati 2. Metrobloks will lead the design, development, leasing and day‑to‑day operations, while Soluna will provide site control, power entitlements, electrical equipment and development expertise. Both parties will jointly source and structure third‑party capital, leveraging Soluna’s renewable‑energy portfolio and Metrobloks’ experience in AI‑ready data center design to accelerate time‑to‑market for high‑density compute customers.
This deal marks a strategic pivot for Soluna, which has historically focused on Bitcoin mining. By partnering with Metrobloks, Soluna aims to diversify its revenue streams into AI and HPC workloads, capitalizing on the growing demand for renewable‑powered, low‑latency infrastructure. The project’s location in South Texas offers abundant power and a grid environment conducive to rapid deployment, while Soluna’s renewable‑energy model provides a competitive advantage for customers seeking sustainable compute solutions.
Soluna’s financial backdrop underscores the significance of the partnership. In the third quarter of 2025, the company reported a 37% sequential increase in revenue and a net loss of $23.96 million, reflecting ongoing investment in data‑center expansion. A $32 million direct offering completed in January 2026 bolsters Soluna’s capital base, enabling it to fund large‑scale projects such as Project Kati 2. The company’s pipeline includes the 48‑MW Project Dorothy 2 and the 83‑MW Project Kati 1, positioning it to scale its renewable‑powered data‑center footprint rapidly.
John Belizaire, Soluna’s CEO, said the partnership “provides the infrastructure AI and HPC customers need most right now: available power, strong renewable resources, and a regulatory environment that supports speed.” Ernest Popescu, Metrobloks’ CEO, added that the project “stands out because the power is both available and scalable, and Soluna has already secured a renewable‑powered site with room to grow.”
The collaboration is expected to accelerate Soluna’s entry into the AI/HPC market, reduce deployment lead times, and expand its geographic footprint. By combining Soluna’s renewable energy expertise with Metrobloks’ AI‑ready design capabilities, the joint venture is positioned to capture a growing share of the high‑density compute market, which is increasingly demanding sustainable and low‑latency infrastructure.
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