Investment Firm Generate Capital Allocates $100 Million for Solar Power-Driven Data Center Specialist Soluna's Expansion Project
Soluna Holdings Secures $100 Million Credit Facility for Green Data Center Expansion
Soluna Holdings, a green data center developer based in Albany, New York, has secured a significant boost to its growth plans. The company has announced a scalable $100 million credit facility from sustainable infrastructure investor Generate Capital.
John Belizaire, CEO of Soluna Holdings, stated that the funding will not only aid in growing current projects but also building new ones wherever wasted renewable energy can be converted into valuable high-performance computing. Soluna's mission is to transform curtailed or underutilized renewable energy into compute power.
The financing will support Soluna's pipeline of clean data centers. Soluna Holdings co-locates its data centers with renewable power sources such as wind, solar, or hydroelectric power plants. This approach not only reduces carbon emissions but also ensures a sustainable and reliable energy source for its operations.
Ryan Miller, Principal at Generate Capital, expressed excitement about supporting Soluna's growth through a flexible credit solution. Generate Capital will also have a board observer right, providing them with a closer look at Soluna's operations.
In addition to the main $100 million facility, an uncommitted $64.5 million accordion facility will support Soluna's renewable-powered pipeline and fund AI-related long-lead equipment procurement. A $22.9 million delayed draw facility will support the Dorothy 2 project and the newly launched 166 MW Project Kati 1 data center project.
The deal with Generate Capital continues Generate Capital's leadership at the nexus of digital and energy infrastructure. Soluna will use the credit facility for refinancing and construction of data center projects, with an initial $12.6 million draw for the Texas-based Dorothy 1A and Dorothy 2 projects.
John Belizaire, CEO of Soluna, noted that the financing primes Soluna for scale. Soluna is currently working on its largest project called Projekt Kati, which is financed through the $100 million credit facility provided by Generate Capital.
As part of the transaction, Generate Capital received warrants for the right to purchase 4 million shares of Soluna common stock. This move underscores Generate Capital's confidence in Soluna's future growth and potential.
With this funding, Soluna Holdings is not just growing its current projects, but also expanding its reach to harness renewable energy for high-performance computing wherever it can. This partnership with Generate Capital is a significant step forward in Soluna's mission to lead the way in sustainable digital infrastructure.
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