Project Kati Successfully Completes ERCOT Planning Phase
Soluna Holdings, Inc. (“SHI” or the “Company”), a developer of green data centers specializing in intensive computing applications such as Bitcoin mining and artificial intelligence (AI), has reached a significant milestone with its Project Kati. The project has successfully exited the Electric Reliability Council of Texas (ERCOT) planning phase, marking a crucial step forward in its development. This achievement paves the way for the construction and expansion of the project, which aims to deliver up to 166 MW of renewable energy capacity in two phases. It is also expected to unlock new hosting and joint venture opportunities, further enhancing the Company’s position in the renewable computing sector.
John Belizaire, CEO of Soluna Holdings, emphasized the importance of this milestone, stating, “The successful exit from the ERCOT planning phase is a major achievement for Project Kati and a testament to the hard work and dedication of our team. This milestone brings another project closer to shovel readiness, helping to realize our vision of expanding renewable computing infrastructure for the world’s most innovative computing applications.”
Project Kati’s Next Steps
With the ERCOT planning phase now complete, Project Kati will enter the next stage of development, focusing on several key areas:
- Land Negotiations: The Company is in the final stages of securing the land needed for both phases of Project Kati. This includes ensuring enough space for future AI computing expansions.
- Capital Formation Activities: Soluna Holdings will seek bids from potential investors interested in financing the project.
- AI Joint Venture Opportunities: The Company is exploring joint ventures to establish an AI-focused data center within Project Kati.
- High-Performance Computing (HPC) Site Analysis: AI data center development advisors have been hired to analyze the site for key infrastructure requirements, including energy availability, environmental impact, connectivity, and compliance with Tier-3 data center standards.
Construction Timeline and Capacity Expansion
The Company intends to begin construction of Project Kati in 2025. The first phase will bring 83 MW of renewable energy capacity online, with the second phase completing the 166 MW target. Once operational, Project Kati will increase Soluna Holdings’ total managed capacity for Bitcoin mining and hosting to over 206 MW.
John Belizaire highlighted the importance of meeting the growing demand from its Hyperscale Miner customers, stating, “Our Hyperscale Miner customers continue to seek out our renewable energy-powered data centers to meet their growing hosting needs. It’s a testament to our ‘white glove’ service we call Relentless Stewardship.”
Naming and Inspiration
In line with Soluna Holdings’ tradition of naming its data centers after pioneering women scientists, Project Kati is named in honor of Katalin “Kati” Karikó. A Hungarian scientist, Karikó played a pivotal role in developing mRNA-based protein therapies, contributing significantly to the modern advancements in mRNA vaccine technology.
The Importance of Renewable Energy in Data Centers
Project Kati’s renewable energy-powered infrastructure aligns with Soluna Holdings’ commitment to sustainability. Traditional data centers require vast amounts of energy, often sourced from fossil fuels, which contributes to carbon emissions. By leveraging renewable energy sources, Soluna Holdings aims to address both the increasing demand for data processing and the pressing need for sustainable energy solutions.
AI and Bitcoin mining, two of the primary applications powered by Soluna’s green data centers, are particularly energy-intensive. Bitcoin mining requires significant computational power, often leading to high electricity consumption. AI applications, especially those involving machine learning and neural networks, also demand substantial computing resources. By utilizing renewable energy, Project Kati will reduce reliance on fossil fuels and promote sustainable digital infrastructure development.
The Growing Market for Renewable-Powered Data Centers
The data center industry is experiencing rapid growth due to the increasing adoption of AI, cloud computing, and blockchain technologies. The demand for high-performance computing resources continues to rise, making efficient and sustainable energy solutions more critical than ever. Companies that can provide scalable, renewable-powered data center solutions are poised to play a key role in shaping the future of the industry.
Soluna Holdings’ innovative approach positions it as a leader in this evolving sector. By developing green data centers that cater to Bitcoin mining, AI, and other computational applications, the Company is not only addressing market demand but also contributing to the broader transition toward sustainable energy solutions.
Project Kati and the Future of Soluna Holdings
Project Kati represents just one step in Soluna Holdings’ broader vision for the future. The successful completion of this project will provide the foundation for additional developments and expansions. By continuing to invest in renewable energy-powered data centers, Soluna Holdings is reinforcing its commitment to innovation, sustainability, and the advancement of high-performance computing.
As the Company moves forward with Project Kati, it remains focused on key strategic initiatives, including securing financing, forging strong partnerships, and optimizing site infrastructure to meet the highest industry standards. The successful execution of these initiatives will not only solidify Soluna Holdings’ position in the market but also pave the way for future projects that further enhance the role of renewable energy in powering the next generation of computing applications.
