AI and cryptomine data center firm Soluna has secured a new $100 million credit line and broken ground on a new site in Texas.

Soluna credit raise

The company this week announced the close of $100m credit facility from Generate Capital, PBC, an infrastructure investment firm.

The initial $12.6m draw will fund refinancing and construction of active data center projects, with additional capital support for Soluna’s 1GW and expanding pipeline.

“We believe this deal with Generate primes Soluna for scale,” said John Belizaire, CEO of Soluna.

“We’re not just growing our current projects, we’re building new ones wherever wasted renewable energy can be converted into valuable high-performance computing. This deal reflects a different kind of infrastructure financing, focused on capital efficiency, modular growth, and disciplined execution.”

Generat has invested more than $2.4 billion in credit to date. As part of the deal, Generate has received warrants for the right to purchase four million shares of Soluna common stock and a board observer right.

“We’ve known the Generate team for quite some time before partnering; they understand our business, our team, and our industry well, making them so much more than just investors,” Belizaire added. “We see them as strategic partners going forward.”

An initial $12.6m draw will be used to refinance Dorothy 1A and Dorothy 2. A delayed draw facility of $22.9m will include continued funding for the Dorothy 2 project and support for the Project Kati 1 data center.

“Soluna’s vision for turning underutilized renewable energy into scalable computing power aligns with our belief in infrastructure that solves real-world challenges,” said Ryan Miller, Principal at Generate Capital. “We’re excited to support their growth through a flexible credit solution and continue our leadership at the nexus of digital and energy infrastructure.”

Soluna breaks ground on Kati

The company has broken ground on its 166MW Project Kati campus in Willacy County, Texas.

Built in partnership with EDF Renewables, Masdar, and Spring Lane Capital, the project will support both Bitcoin hosting as well as AI infrastructure.

The first 83MW phase is due to go live in early 2026. Kati 1 will support Bitcoin hosting; 48MW for Galaxy and 35MW for Soluna’s Bitcoin hosting. The second phase will double the site’s capacity and offer AI/HPC hosting.

“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. “Project Kati showcases our ability to deliver large-scale facilities with world-class investors and positions Soluna for long-term growth across Bitcoin hosting and AI infrastructure.”

Plans for Kati were first announced in early 2025. The company has previously secured $40m to build out the site.

Soluna now has 11 data center sites in various stages of development: Project Sophie, Project Dorothy 1 & 2, Project Kati 1, Project Grace, Project Rosa, Project Hedy, Project Ellen, and Project Annie. Soluna claims a long-term pipeline totaling 19 projects and up to 2.8GW of capacity.