Soluna Holdings (NASDAQ: SLNH) began energizing Project Kati 1 as of Tuesday following approval from the Texas grid authority ERCOT, according to a Soluna press release.
The 83 MW data center expansion in South Texas lifts the company’s total compute capacity past 200 MW. Soluna’s management targets full completion of the project by the fourth quarter of 2026. Soluna anticipates the project will generate between $17.3 million and $19.6 million in annual revenue.
The facility operates on renewable energy provided by the Las Majadas wind farm, and the addition marks a 67% increase in the company’s operational footprint.
Soluna has split the energization of Project Kati into two primary stages. Phase 1A comprises 48 MW in total across three sub-phases with a target to ramp fully by early in the second quarter. Phase 1B follows with 35 MW with an expected completion by the end of the third quarter.
The second phase includes a strategic deployment with Cormint for 12 MW of the capacity. The company selected this modular approach to minimize labor requirements and accelerate timelines.
Project Kati 1 projects to contribute 3.5 EH/s to the company’s hashrate capacity, and Soluna said that the facility is capable of supporting intensive workloads including bitcoin mining and AI/HPC applications.
CEO John Belizaire described the event as a validation of the company’s strategy to utilize curtailed wind energy.
“This is a major milestone for project Kati 1, and a clear demonstration of our blueprint for Renewable Computing at scale,” Belizaire said. “Energization of this site represents an increase of more than 67% in our total capacity.”
Header image by Sam LaRussa via Unsplash.
