TLDR
- APLD shares surge 8.54% as Applied Digital takes control of a Texas AI project.
- Applied Digital gains a 51% stake in Soluna’s planned 50 MW Texas data center.
- Soluna brings land and power assets, while Applied Digital funds development.
- ChronoScale eyes a lease for the Texas AI facility, pending final agreements.
- Texas AI data center deal targets wind and grid power as APLD stock rallies.
Applied Digital Corporation (APLD) stock surged 8.54% to $20.98 as the company announced a major Texas AI data center partnership. The shares gained $1.65 during regular trading, reflecting strong market interest in the company’s expanding infrastructure business. However, APLD stock slipped 0.49% to $20.88 in after-hours trading following the sharp daily advance.
Applied Digital Secures 51% Stake in Texas AI Data Center Project
Applied Digital has signed a definitive agreement with Soluna Holdings to develop a 50-megawatt AI data center in Texas. The 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 49%.
Soluna will contribute land and power-related assets from its existing development site to support the planned facility. Applied Digital will provide 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 after meeting several closing requirements. These include local tax abatement approval, corporate authorizations, property documentation, and final agreements covering power and leasing. Additionally, both companies must finalize the joint venture’s operating agreement before completing the transaction.
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. Furthermore, the first development phase will support 50 megawatts of critical information technology equipment.
The facility plans to use electricity from both the nearby wind farm and the regional power grid. This arrangement will connect 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. Consequently, 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. However, the companies must negotiate and execute a definitive lease before establishing binding rental commitments.
The proposed lease would connect the Texas facility with ChronoScale’s accelerated computing operations and future infrastructure requirements. Additionally, the arrangement would create 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 a completed contract.
Applied Digital’s latest agreement adds another development initiative to its growing AI and high-performance computing infrastructure business. The planned joint venture brings together project financing, available land, renewable power access, and potential computing demand. Meanwhile
