8-K: Soluna, Metrobloks Partner for 100+ MW AI Data Center

Soluna Holdings, Inc. announced a co-development partnership with Metrobloks, LLC to build a 100+ MW AI and HPC data center at Project Kati 2 in Texas.

Summary

• Soluna Holdings, Inc. signed a Memorandum of Understanding (MOU) with Metrobloks, LLC to co-develop Project Kati 2 (aka MB MFE-A).
• The initial development will be a 100+ MW Critical IT (CIT) AI and high-performance compute (HPC) data center at Soluna's Project Kati 2 campus in Willacy County, Texas.
• This project is expected to be the first phase of a larger campus, with an expansion roadmap supporting over 300 MW of total CIT capacity.
• The partnership aims to shorten time-to-market for customers needing dense, GPU-ready capacity by combining Soluna's renewable-powered campus and ERCOT grid experience with Metrobloks' AI-ready data center design, development, leasing, and operations platform.
• Soluna will contribute site control, power entitlements, electrical equipment, and development expertise.
• Metrobloks will lead design, development, leasing, and day-to-day operations, including securing pre-lease commitments and managing customer engagement.
• Both parties will jointly source and structure third-party capital for the project.
• The site is currently under a non-binding letter of intent from a potential neocloud tenant.
• The parties are working with EDF Power Solutions to source additional power from the Las Majadas wind farm for expansion.
• Soluna broke ground on Project Kati in September 2025, with the 166+ MW Texas wind-powered campus being developed in two phases, making it a dual-purpose facility for digital assets and AI/HPC.

Sentiment

Score: 9

Explanation: The announcement is highly positive, detailing a significant strategic partnership for a large-scale AI/HPC data center project with substantial growth potential, aligning with strong industry demand and leveraging renewable energy. The involvement of a specialized partner and early tenant interest are strong indicators.

Positives

• Establishes a co-development partnership with Metrobloks, a specialist in high-density, sustainable data centers for AI and low-latency applications.
• Unlocks 100+ MW of initial AI and HPC capacity at Project Kati 2, with an expansion roadmap to over 300 MW.
• Leverages Soluna's secured renewable power and ERCOT grid experience with Metrobloks' AI-ready design and operational expertise for rapid deployment.
• Adds geographic diversity with a southern U.S. deployment option in Willacy County, Texas, beyond Central and West Texas.
• The site offers available power, strong renewable resources, and a supportive regulatory and grid environment for speed.
• The project is designed to serve both digital assets and AI/HPC customers, adapting to evolving demand.

Risks

• Forward-looking statements involve inherent risks and uncertainties, as further information regarding these is included in the Company's filings with the SEC.
• The letter of intent from a potential neocloud tenant is non-binding, indicating potential uncertainty in securing a definitive agreement.

Future Outlook

The partnership aims to accelerate AI and HPC deployment by combining Soluna's site and power with Metrobloks' design and operational expertise. The initial 100+ MW development is expected to be the first phase of a larger campus, with an expansion roadmap supporting over 300 MW of total Critical IT capacity. The parties are also working to source additional power for future expansion.

Management Comments

• John Belizaire, CEO of Soluna: "Project Kati is our blueprint for Renewable Computing at scale, and this site reflects the kind of infrastructure AI now demands. This site offers what AI and HPC deployments need most right now: available power, strong renewable resources, and a regulatory and grid environment that supports speed. Our team spent years securing the right location and power position at Kati. By partnering with Metrobloks to lead design, operations, and customer engagement for Kati 2, we can accelerate AI and HPC deployment while staying focused on what we do best, turning constrained renewable energy into productive compute."
• Ernest Popescu, CEO, Metrobloks: "Customers are telling us the same thing in every market. They need power and capacity now, not years from now. Project Kati stands out because the power is both available and scalable. Soluna has already done the hard work to secure a renewable-powered site with room to grow. We're building on that foundation with AI-ready design and a clear path for customers to scale high-density AI and HPC workloads beyond the initial 100 MW."

Industry Context

This announcement aligns with the surging demand for high-density, AI-ready data center capacity, which is currently constrained by power availability and interconnection challenges. The partnership addresses this by combining secured renewable power with specialized AI infrastructure design, positioning the venture to capitalize on the rapid growth of AI and HPC workloads. The focus on geographic diversity also reflects a broader industry trend to de-risk and optimize data center siting strategies.

Comparison to Industry Standards

• The filing highlights that customers are demanding power and capacity 'now, not years from now,' indicating a significant industry bottleneck that this partnership aims to address.
• Metrobloks' leadership team has enabled over 12 gigawatts of global data center capacity, suggesting a strong track record in the industry, though specific comparable projects or companies are not named.
• The project's focus on combining renewable power with AI/HPC infrastructure positions it within the growing trend of sustainable computing, which is becoming an industry standard for new data center developments.

Stakeholder Impact

• Shareholders: Potential for significant revenue growth and increased asset value through the development of a large-scale AI/HPC data center.
• Customers: Increased access to high-density, GPU-ready computing capacity, particularly for AI and HPC workloads, with faster deployment times.
• Employees: Potential for new job opportunities and expanded operational roles as the project develops and scales.
• Suppliers: Increased demand for electrical equipment, construction services, and other data center infrastructure components.
• Creditors: Potential for new financing opportunities as third-party capital is sourced for the project.

Next Steps

• Form a project company to own and operate Project Kati 2.
• Metrobloks to lead design, development, leasing, and day-to-day operations, including securing pre-lease commitments and managing customer engagement.
• Soluna and Metrobloks to jointly source and structure third-party capital for the project.
• Work with EDF Power Solutions to source additional power from the Las Majadas wind farm to expand the project.

Key Dates

Recommendation

The co-development partnership with Metrobloks for Project Kati 2 represents a significant strategic move into the high-growth AI and HPC data center market. The initial 100+ MW capacity with a 300+ MW expansion roadmap, combined with Soluna's renewable power assets and Metrobloks' specialized expertise, positions the company to capture substantial market share in a high-demand sector. The non-binding LOI from a potential tenant further de-risks the project's commercial viability. This announcement indicates strong future growth potential and aligns with critical industry trends, making it a compelling investment opportunity.

Keywords

AI data center, HPC data center, renewable energy, data center development, Project Kati 2, Soluna Holdings, Metrobloks, Texas, ERCOT, GPU-ready capacity