Applied Digital Corporation (APLD) shares surged 8.54% to $20.98 after the company announced a major Texas artificial intelligence data center partnership with Soluna Holdings. The stock gained $1.65 during regular trading, reflecting strong market interest in the company's expanding infrastructure business. In after-hours trading, however, APLD gave back a small portion of the advance, slipping 0.49% to $20.88.

The announcement centers on a joint venture that gives Applied Digital majority control of a planned 50-megawatt facility, with a nonbinding leasing interest already registered by an affiliated computing provider.

Applied Digital Takes Controlling 51% Stake in Texas AI Data Center Venture

Applied Digital has signed a definitive agreement with Soluna Holdings to develop a 50-megawatt AI data center in Texas. The two companies will establish a joint venture to oversee development at Soluna's Project Dorothy 3 site near Silverton. Under the agreement, Applied Digital will control 51% of the venture, while Soluna will retain the remaining 49%.

The arrangement assigns complementary roles to each partner. Soluna will contribute land and power-related assets from its existing development site to support the planned facility, while Applied Digital will provide the capital to advance construction and establish the infrastructure required for intensive computing operations. The partnership combines Soluna's energy resources with Applied Digital's experience in developing and operating high-performance data centers.

The companies expect to complete the transaction before the end of 2026, subject to several closing requirements. These include local tax abatement approval, corporate authorizations, property documentation, and final agreements covering power and leasing. Both companies must also finalize the joint venture's operating agreement before the transaction can be completed. Until those items are resolved, the deal remains signed but not closed, leaving the tax abatement decision and the final power and leasing agreements as the visible checkpoints for tracking whether the transaction reaches completion.

Project Dorothy 3 Targets Growing AI Computing Demand

Project Dorothy 3 will operate near Soluna's existing Dorothy 1 and Dorothy 2 developments in Briscoe County. The proposed facility will sit alongside Briscoe Wind, a wind farm with 150 megawatts of generation capacity. The first development phase will support 50 megawatts of critical information technology equipment.

The facility plans to draw electricity from both the nearby wind farm and the regional power grid, an arrangement that connects renewable generation with the substantial electricity requirements of AI and high-performance computing systems. The project will expand Applied Digital's infrastructure portfolio through a new Texas development site.

Energy availability remains a central consideration for companies developing large computing facilities across the United States. AI data centers require substantial electrical capacity to operate advanced processors, cooling systems, and supporting equipment. As a result, access to established power resources plays an important role in selecting sites for new developments.

ChronoScale Plans Lease as Applied Digital Expands AI Infrastructure

ChronoScale Holdings has signed a nonbinding letter of intent to lease the proposed Dorothy 3 data center. Applied Digital holds a majority ownership position in ChronoScale, which provides computing infrastructure for demanding AI workloads. Because of that ownership link, the potential lease would take shape between affiliated entities, though the companies must still negotiate and execute a definitive lease before binding rental commitments can be established.

The proposed lease would connect the Texas facility with ChronoScale's accelerated computing operations and future infrastructure requirements, creating a potential customer relationship within Applied Digital's broader group of affiliated businesses. The current letter outlines the proposed leasing arrangement but does not guarantee that a completed contract will follow. Whether the parties convert the letter of intent into an executed lease stands alongside the venture's closing conditions as one of the developments to watch as the project moves forward.

Applied Digital's latest agreement adds another development initiative to its growing AI and high-performance computing infrastructure business. The planned venture brings together project financing, available land, renewable power access, and potential computing demand under a single structure.

Source: Blockonomi