Soluna Holdings, a green data center developer based in Albany, New York, has secured a $100 million scalable credit facility from Generate Capital. The financing is designed to accelerate the development of Soluna’s pipeline of clean, high-performance computing data centers powered entirely by renewable energy.

Tackling Renewable Energy Waste with Smart Infrastructure

Founded in 2018, Soluna operates at the intersection of digital infrastructure and clean energy. The company builds and manages data centers that are co-located with wind, solar, or hydroelectric plants, enabling them to convert otherwise curtailed or wasted renewable energy into valuable computing power. By transforming stranded energy into scalable compute capacity, Soluna offers a solution to one of the most persistent challenges in the energy transition intermittency and underutilization of green energy assets.

CEO Sees Growth Opportunity Across Renewables and AI

Soluna’s CEO, John Belizaire, called the agreement with Generate Capital a pivotal moment for the company. He emphasized that the capital infusion is not only about scaling existing operations but also about launching new clean computing projects in locations with surplus renewable power. The company’s expansion strategy is focused on identifying energy-abundant sites and building tailored infrastructure to harness that unused capacity for high-performance computing applications, including artificial intelligence.

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Initial Draw Focused on Dorothy Projects and 166 MW Kati 1

The initial $12.6 million drawn from the credit facility will be used to refinance two of Soluna’s flagship Texas-based data centers, Dorothy 1A and Dorothy 2. An additional $22.9 million delayed draw tranche will continue to fund Dorothy 2’s buildout and support Project Kati 1, a newly launched 166-megawatt facility expected to be a cornerstone in Soluna’s clean data strategy. The financing also includes a $64.5 million uncommitted accordion facility to further fund the pipeline and help procure AI-related long-lead equipment, signaling the company’s deeper move into AI workloads.

Generate Capital Secures Equity Options and Governance Role

As part of the transaction, Generate Capital has received warrants to purchase four million shares of Soluna’s common stock. The deal also includes a board observer seat, giving Generate visibility into Soluna’s strategic roadmap and growth trajectory. This arrangement reflects a growing trend where infrastructure investors not only provide flexible capital but also take an active role in steering ESG-aligned ventures.

Aligning Compute with Climate in the Digital Age

Ryan Miller, Principal at Generate Capital, said the partnership reflects a shared vision for digital infrastructure that solves real-world climate challenges. He highlighted Soluna’s ability to tap into underused renewable energy as a compelling example of how innovation in data infrastructure can reinforce climate goals rather than compromise them. With this investment, Generate Capital continues to lead in financing infrastructure at the intersection of energy and technology.

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A Blueprint for Climate-Smart AI and Web3 Growth

Soluna’s strategy stands out in an industry often criticized for its energy intensity. By embedding clean energy sourcing into the architecture of its data centers, the company is setting a new benchmark for climate-aligned digital infrastructure. With AI and Web3 expected to drive exponential growth in global computing demand, Soluna’s model offers a scalable and sustainable alternative, one that could redefine how data centers operate in a net-zero world.

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