ALBANY, N.Y. – Soluna Holdings, Inc. (NASDAQ: SLNH), a developer of renewable-powered data centers for compute-intensive applications, has announced a major expansion of its collaboration with Galaxy Digital Inc. (NASDAQ/TSX: GLXY), a global leader in digital assets and datacenter infrastructure. Under this new agreement, Galaxy will deploy its proprietary Bitcoin mining operations—previously based at its Helios campus in Texas—into Soluna’s Project Kati 1, a facility designed to pair large-scale computing with surplus renewable energy.

The deployment will add 48 MW of capacity, bringing Project Kati 1 to its full 83 MW buildout. With tax abatements already cleared, Soluna confirmed construction is expected to begin before the end of August.

This marks Soluna’s largest single-partner deployment to date, further extending its strategy of modular, renewable-powered digital infrastructure. The facility is expected to become operational in Q1 2026, with Galaxy serving as the first operational customer on the site.

“As demand from hyperscaler miners continues to surge, Soluna is scaling to meet the moment,” said John Belizaire, CEO of Soluna. “This partnership with Galaxy represents our largest MW deployment to date and underscores how our modular approach allows us to deliver efficient, renewable-powered infrastructure at scale. We’re proud to deepen our relationship with Galaxy and help power the next wave of computing.”

Soluna first established ties with Galaxy earlier this year through a $5 million loan facility in Q1 2025. This new arrangement shifts the relationship into a long-term operational collaboration, underscoring the role of data center operators like Soluna in supporting the evolving digital asset ecosystem.

For Galaxy, the move comes as part of its transition strategy. The company is repositioning its Helios campus toward AI and high-performance computing (HPC), two fast-growing sectors demanding scalable infrastructure.

“As we transition our Helios campus to an AI and high-performance computing data center, we’re pleased to relocate a portion of our existing Bitcoin mining assets to Soluna to manage,” said Sam Kiernan, Business Development Lead at Galaxy.

With this new deployment, Soluna projects that its total operating capacity will reach 206 MW once fully built out, signaling its growing footprint in renewable-powered digital infrastructure.

Strategic Significance

By anchoring Galaxy as the first operational customer at Project Kati 1, Soluna strengthens its ability to attract additional top-tier computing clients, including AI firms seeking renewable-powered solutions.

Renewable Energy Integration‍

Project Kati 1 is strategically located to leverage abundant Texas renewable energy, particularly wind and solar, enabling more efficient use of otherwise curtailed power.

Market Timing‍

The expansion comes as both the Bitcoin mining industry and AI-driven data infrastructure are facing rising demand and tightening energy constraints. Operators who can integrate cost-effective renewable energy are increasingly favored by investors and regulators.

Industry Trend‍

The deal reflects a broader trend where companies with deep roots in Bitcoin mining are diversifying into AI and HPC, while renewable-powered infrastructure providers like Soluna position themselves as critical partners.

Long-Term Roadmap‍

Soluna expects that Project Kati 1, once online in 2026, will serve as a template for future modular projects that connect stranded or underutilized renewable energy to global compute markets.

Originally reported by Business Wire.