Soluna and Applied Digital partner to build a 50 MW AI data center at Project Dorothy 3 in Texas.
AI & Agents ·
Soluna and Applied Digital are partnering to develop a 50 megawatt AI data center at Project Dorothy 3 in Texas. The project underscores Texas's emergence as a primary U.S. hub for compute infrastructure investment, drawing major operators seeking to combine low-cost power with favorable regulatory conditions.
Texas has become increasingly central to cryptocurrency and AI infrastructure buildout, driven by its independent power grid operated by ERCOT, absence of state income tax, and permissive approach to energy-intensive industries. The state's grid design enables large industrial consumers to participate in demand-response programs, creating economic flexibility for operators. Other major projects in the state include a 352-megawatt AI data center funded by Hut 8 through $4.25 billion in non-recourse notes, as well as efforts by Core Scientific to convert existing mining infrastructure into a data center campus with substantial capacity aimed at leasing to AI firms.
Details regarding the timeline, specific power sourcing, and intended use case for the Soluna and Applied Digital facility remain undisclosed. The partnership reflects broader industry movement toward Texas as a destination for hyperscale AI compute, though the competitive intensity of such projects and grid capacity constraints warrant monitoring.