Key Highlights
- APLD stock climbs 8.54% following announcement of Texas AI infrastructure partnership.
- Company secures majority ownership position in Soluna’s 50 MW data center development.
- Soluna contributes property and energy infrastructure while Applied Digital provides funding.
- ChronoScale expresses interest in leasing the completed Texas computing facility.
- Dorothy 3 project designed to leverage wind energy and grid electricity for AI operations.
Shares of Applied Digital Corporation (APLD) jumped 8.54% to reach $20.98 following the company’s announcement of a significant Texas AI data center collaboration. The stock climbed $1.65 throughout standard market hours, demonstrating considerable investor enthusiasm for the firm’s infrastructure expansion strategy. Following the substantial intraday increase, APLD stock declined 0.49% to $20.88 in extended trading sessions.
Applied Digital Takes Majority Position in 50 MW Texas Computing Facility
Applied Digital has entered into a binding agreement with Soluna Holdings to construct a 50-megawatt AI data center facility in Texas. The partnership will create a joint venture responsible for developing the infrastructure at Soluna’s Project Dorothy 3 location near Silverton. According to the terms, Applied Digital will hold a controlling 51% interest in the venture, with Soluna maintaining the remaining 49% ownership.
Soluna’s contribution to the partnership includes property rights and power infrastructure assets from its current development portfolio. Applied Digital will supply the necessary financial resources to drive construction forward and build the infrastructure needed for high-intensity computational workloads. The collaboration merges Soluna’s energy capabilities with Applied Digital’s proven track record in designing and managing advanced data center operations.
Both parties anticipate closing the transaction prior to year-end 2026, subject to satisfying multiple prerequisite conditions. Required approvals encompass local property tax abatement agreements, corporate authorizations from both entities, real estate title documentation, and finalized contracts addressing electricity supply and facility leasing. The companies must also execute the joint venture’s governance framework before transaction completion.
Dorothy 3 Development Addresses Expanding AI Infrastructure Requirements
The Project Dorothy 3 facility will be positioned adjacent to Soluna’s operational Dorothy 1 and Dorothy 2 installations in Briscoe County. The planned data center will benefit from proximity to Briscoe Wind, a renewable energy installation capable of producing 150 megawatts of electrical power. The initial construction phase is designed to accommodate 50 megawatts of critical computing hardware.
Operational power for the facility will derive from dual sources: the adjacent wind generation facility and the broader electrical transmission network. This dual-source configuration aligns renewable energy production with the significant power demands characteristic of AI and advanced computing infrastructure. The development represents an additional asset in Applied Digital’s expanding infrastructure holdings through this new Texas location.
Electrical power availability continues to be a critical factor for organizations establishing large-scale computing operations throughout the United States. AI-focused data centers demand substantial electricity to power sophisticated processing units, thermal management systems, and ancillary infrastructure. As a result, proximity to reliable power sources significantly influences site selection decisions for new facility developments.
ChronoScale Explores Facility Lease as Applied Digital Broadens Computing Portfolio
ChronoScale Holdings has executed a preliminary letter of intent expressing interest in leasing the planned Dorothy 3 data center facility. Applied Digital maintains a controlling equity stake in ChronoScale, an organization focused on delivering computing capacity for intensive AI applications. The parties must still complete negotiations and execute a final lease contract to establish legally binding occupancy terms.
The contemplated leasing arrangement would integrate the Texas installation with ChronoScale’s accelerated computing services and anticipated infrastructure expansion needs. The prospective agreement would also establish a tenant relationship among entities within Applied Digital’s affiliated corporate structure. While the current letter outlines proposed terms, it carries no contractual obligation until a definitive agreement is signed.
Applied Digital’s recent partnership announcement represents another strategic initiative within its expanding AI and high-performance computing infrastructure operations. The proposed joint venture combines project capital, available real estate, renewable energy access, and prospective tenant demand.
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