September 26, 2022

The money brings Soluna’s total funding for data centers co-located with renewable energy assets to $100 million.

Source: Coindesk.com
Source: Coindesk.com

Soluna Holdings (SLNH), a data-center developer that uses renewable energy for computing, arranged $35 million in project financing from private equity firm Spring Lane Capital for building more facilities.

The money will help develop three behind-the-meter (BTM) facilities, designed to convert wasted renewable energy into clean computing for services such as bitcoin (BTC) mining and artificial intelligence, according to a statement.

“Soluna is the only true green bitcoin company we’ve yet seen,” said Rob Day, a Spring Lane partner and co-founder. “Going after wasted renewable energy – ‘spilled power’ – is a compelling solution – and fixes both bitcoin’s climate problem and wind power’s grid problem.”

The first of the three projects, Dorothy, will be a 100 megawatt (MW) capacity data center connected to a Texas wind farm that produces more electricity than the grid can consume.

Energy from renewable sources, such as wind, sometimes overloads the power grid when the energy produced exceeds demand. Data centers like Soluna’s help manage the supply by running computing-intensive processes like crypto mining.

Dorothy will have 50MW of initial capacity and is expected to be activated in coming months.

The other two projects will “come from Soluna’s robust pipeline,” the statement said.

Soluna said the new capital brings total funding for data centers co-located with renewable energy assets to $100 million.

Most recently it closed a $29.2 million Series A preferred stock public offering and sold a business unit for $10.75 million.