Crypto and AI data center firm Soluna has secured financing to fuel a project in Texas.

This week the company announced financing from Spring Lane Capital for a 35MW phase of Project Kati, a behind-the-meter data center project in Texas.

Spring Lane Capital, a private equity firm providing hybrid project capital for sustainability solutions, has entered into a term sheet to lead the financing round with a commitment of at least $20 million via Spring Lane Capital Fund II.

The financing will facilitate the construction of the first 35MW of the 83MW phase of Kati 1, which will be used for cryptomining. Construction is set to start in Q3 2025, with Phase I energized by 2026.

John Belizaire, CEO of Soluna Holdings, said: “Spring Lane Capital has been a trusted and strategic partner throughout our growth. We’re proud to continue that momentum with Project Kati — a partnership on a facility that marks an exciting new phase for Soluna, with multiple projects moving forward in parallel. This investment accelerates our ability to deploy scalable, clean, compute where the energy grid needs it most.”

Spring Lane Capital is also an investor in Soluna’s Projects Dorothy 1A and Dorothy 2. The companies have also signed a separate agreement to extend up to $100 million of additional project-level capital for Soluna’s project pipeline.

“Soluna continues to be at the forefront of converting otherwise curtailed or wasted renewable energy into clean computing solutions, particularly for crypto mining and AI applications, at a time when we need it most,” added Rob Day, co-founder and partner, Spring Lane Capital. “We are proud to be an early and ongoing supporter of Soluna as they take another step toward sustainable high-performance computing and meeting green data center demand.”

Soluna acquired the Kati site earlier this year. The campus is set to offer 166MW and potentially host both Bitcoin mining and artificial intelligence (AI) facilities.

“Our pipeline conversion rate is now higher than in previous years. With over 650MW in our development phase, Spring Lane’s continued support is more than welcome. We have now expanded beyond an idea – using colocated data centers to solve curtailment – to a burgeoning digital infrastructure platform,” Belizaire continued.

The project is in partnership with EDF Renewables and Masdar; the companies signed a PPA in March that will see Kati receive behind-the-meter power from the 273MW Las Majadas Wind Project, which became operational in 2021 and is located in Willacy County, southern Texas.

Kati is named after Katalin “Kati” Karikó, the pioneering Hungarian scientist whose groundbreaking work made mRNA-based therapies and modern vaccines possible.

As well as Kati, the company operates or is developing several other campuses, including the 187MW Project Rosa site in Texas; the 50MW Dorothy I A and B as well as 48MW Dorothy II, again in Texas; Project Sophie, a 25MW data center in Kentucky; and the 2MW Grace site in Texas.

At full build-out, the company aims to host a total of 479MW of data center capacity spread across seven separate sites. In its earnings presentation, Soluna claims a long-term pipeline totaling 19 projects and up to 2.6GW of capacity.

Previously, the company owned another facility in Kentucky and one in Washington, but these were exited in 2023 and 2022, respectively.