Green data centre developer Soluna Holdings has announced the acquisition of a $100 million scalable credit facility from sustainable infrastructure investor Generate Capital. This financing will support Soluna’s pipeline of clean data centres. Established in 2018 and headquartered in Albany, New York, Soluna constructs data centres powered by renewable energy, addressing the issue of “wasted energy” within the renewable energy sector. The company designs, develops, and operates digital infrastructure tailored for high-performance computing, co-locating its data centres with renewable power sources such as wind, solar, or hydroelectric plants to convert curtailed or underutilised renewable energy into computing power.
John Belizaire, CEO of Soluna, stated: “We believe this deal with Generate primes Soluna for scale. We’re not just growing our current projects, we’re building new ones wherever wasted renewable energy can be converted into valuable high-performance computing.”
Soluna plans to utilise the credit facility for refinancing and the construction of its data centre projects. An initial $12.6 million draw will refinance its Texas-based Dorothy 1A and Dorothy 2 projects. Additionally, a $22.9 million delayed draw facility will provide ongoing funding for the Dorothy 2 project and support the newly launched 166 MW Project Kati 1 data centre. An uncommitted $64.5 million accordion facility will support Soluna’s renewable-powered pipeline and fund AI-related long-lead equipment procurement. As part of the transaction, Generate Capital also received warrants to purchase 4 million shares of Soluna common stock and a board observer right.
Ryan Miller, Principal at Generate Capital, commented: “Soluna’s vision for turning underutilised renewable energy into scalable computing power aligns with our belief in infrastructure that solves real-world challenges. We’re excited to support their growth through a flexible credit solution and continue our leadership at the nexus of digital and energy infrastructure.”
