Soluna and Applied Digital Plan 50MW AI Data Center Near Silverton
A conditional joint-venture agreement advances Project Dorothy 3, while the intended tenant has signed only a nonbinding letter of intent.
Soluna Holdings and Applied Digital have agreed to form a company to develop a planned 50MW critical-IT data center at Project Dorothy 3 near Silverton. The October 21 announcement gives the proposal a defined ownership structure while leaving several material steps ahead of closing.
Applied Digital is expected to hold 51% and Soluna 49%. Soluna would contribute land and power-related assets, with Applied providing development capital. The announcement does not disclose a total construction value or identify a general contractor.
Project at a Glance
- Planned IT capacity:
- 50MW
- Ownership at closing:
- Applied Digital 51%; Soluna 49%
- Associated wind farm:
- Briscoe Wind: 150MW
- Closing target:
- End of 2026; conditional
The power arrangement still needs definitive documents
Dorothy 3 is planned alongside the 150MW Briscoe Wind Farm and near Soluna’s existing Dorothy developments. The proposed initial phase is expected to use both wind-farm power and grid electricity, subject to final agreements.
The wind farm’s nameplate capacity and the data center’s critical IT load describe different things. They should not be added together or used to suggest that the planned building will operate exclusively on wind generation at all hours. The final power and operational arrangements remain important milestones.
A prospective tenant, rather than an executed lease
ChronoScale has signed a nonbinding letter of intent for the planned facility. A definitive lease still needs to be negotiated and executed. That distinction matters because a tenant indication of interest does not provide the same construction and financing certainty as a completed lease.
Closing conditions also include a Briscoe County tax abatement, title policies, corporate approvals and definitive operating and power agreements. The end-of-year closing target is therefore conditional; it is not an announced date for the building to become operational.
Construction scope to follow
The project could create demand for data-hall construction, cooling equipment, electrical distribution and associated site infrastructure. The announcement does not establish the selected systems, awarded trade packages or construction sequence, so these remain potential disciplines rather than confirmed procurement opportunities.
The next useful updates are the joint venture’s close, a binding tenant agreement, a defined construction budget and appointments to the delivery team. Those developments would help move Dorothy 3 from a conditional development agreement toward a more definite construction program.