$APLD so folks it looks like we have a sixth data center now - this one a joint venture in Texas that will be wind powered and 50 MW. This looks like the
$CHRN servicing of that 50 MW MSFT compute contract to me.
$APLD’s two top executives did not buy
$6.7 million of stock on Friday for shits and giggles.
They bought it for a good reason - they must know something. They obviously have access to all of the inside information that we do not. We just don’t know what it is but they do and there’s nothing illegal about insider buying.
Bottom line is that
$APLD signed an agreement for a 50 MW Texas AI data center joint venture.
Soluna Holdings (SLNH) announced at 7:30 a.m. ET in a press release (link at bottom) that it signed a definitive agreement with
$APLD to develop a 50 MW AI data center at Project Dorothy 3, near Silverton, Texas. Soluna also furnished the announcement in a new SEC Form 8-K (link at bottom).
Here are the major details:
1. New joint venture agreement signed.
$APLD is expected to own 51% of the JV project company, with Soluna retaining 49%. Soluna will contribute land and power related assets, while APLD will provide development capital.
2. Previously unidentified Texas project now confirmed.
$CHRN’s October 14 SEC filing disclosed a proposed Texas data-center joint venture involving
$APLD and an unidentified partner. Today’s announcement identifies Soluna and Project Dorothy 3 as the project participants and location. Great news I believe.
3. Power infrastructure is as follows. The planned 50 MW facility will sit alongside Soluna’s existing 150 MW Briscoe Wind Farm, drawing electricity from both the wind farm and the grid, subject to final agreements.
4.
$CHRN is identified as the prospective tenant.
$CHRN signed a nonbinding letter of intent for a triple-net lease. This is not yet a signed lease or additional contracted revenue.
Here is what was disclosed on the financing and timing of the project.
The parties expect the transaction to close by December 31, 2026, subject to county tax abatement approval, corporate approvals, definitive lease agreements and power agreements.
$APLD’sbcapital contribution has not been quantified. No project-financing closing, construction commencement or Ready-for-Service date were announced. So stay tuned on those details.
For my own portfolio of
$APLD shares, I view this as a positive development.
$APLD has moved from discussing a possible Texas joint venture to signing a definitive development agreement with an identified partner.
The 50 MW project offers another potential revenue producing campus, with an established power-generation asset and a prospective tenant already identified.
However, we are not at the checkered flag. The joint venture has not closed, and the
$CHRN lease remains preliminary. The project should not yet be added to APLD’s signed hyperscaler lease backlog.
From everything I can see this certainly smells like the datacenter that will service
$CHRN’s 50 MW compute contract with
$MSFT. Makes sense to service this at a site separate from the three mega AI factories that APLD is building a service it’s
$20.2 billion in lease agreements with
$META (the ones the company has not confirmed and probably will never confirm to avoid community opposition, but which you can confirm if you search the public filings as I did where I provided the links in a post here earlier).
Good luck to the longs.
This is not investment advice. I am not an investment or financial advisor. I’m a retail investor with a long position of a little over 25,000 shares in
$APLD that is held long and without margin or leverage with an average of
$22.62 currently.  I hold no options in
$APLD and have no short or other positions other than the above-referenced long position. Everyone must do their own diligence. Investing in this, and any other stock involves considerable financial risk, including loss of some or all of the principal investment.
https://www.solunacomputing.com/news/soluna-applied-digital-chronoscale/
https://www.sec.gov/Archives/edgar/data/64463/000149315226047846/form8-k.htm
