Green data center developer Soluna Holdings announced that it has secured a $100 million scalable credit facility from sustainable infrastructure investor Generate Capital, providing financing to support Soluna’s pipeline of clean data centers.
Founded in 2018, Albany, New York-based Soluna builds data centers powered by renewable energy, while also solving the “wasted energy” challenge facing the renewable energy sector. The company designs, develops, and operates digital infrastructure that is purpose-built for high performance computing, while co-locating its data centers with renewable power sources including wind, solar, or hydroelectric power plants to transform curtailed or underutilized renewable energy into compute power.
John Belizaire, CEO of Soluna, said:
“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.”
According to Soluna, the credit facility will be used for refinancing and construction of its data center projects, with an initial $12.6 million draw to be used to refinance its Texas-based Dorothy 1A and Dorothy 2 projects. Additionally, a $22.9 million delayed draw facility will provide continued funding for the Dorothy 2 project and support for its newly launched 166 MW Project Kati 1 data center project, and an uncommitted $64.5 million accordion facility would support Soluna’s renewable-powered pipeline and fund AI-related long-lead equipment procurement. As part of the transaction, Generate Capital also received warrants for the right to purchase 4 million shares of Soluna common stock and a board observer right.
Ryan Miller, Principal at Generate Capital, said:
“Soluna’s vision for turning underutilized 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.”
