Applied Digital Partners for Texas AI Hub

Applied Digital and Soluna Holdings have announced a joint-venture agreement to construct a 50-megawatt AI data center in Texas. This new facility will be situated near Soluna's Dorothy 3 development and will utilize power from an adjacent wind farm. Applied Digital is slated to own 51% of the joint venture, with Soluna holding the remaining stake. Soluna will contribute land and power assets, while Applied Digital will provide capital. The deal is contingent on approvals, including a county tax abatement, with completion anticipated by year-end.

ChronoScale Holdings, majority-owned by Applied Digital, has expressed interest in leasing the data center through a non-binding letter of intent. This development coincides with a positive analyst rating from Roth/MKM's Bryan Baratian, who initiated coverage with a buy rating and a $35 price target. Applied Digital is actively building momentum in the AI data center sector, recently achieving ready-for-service status at a North Dakota facility.