Soluna Holdings, a developer of sustainable data centers, has finalized a $100 million scalable credit facility with Generate Capital, a leading investor in sustainable infrastructure. The financing will fuel Soluna’s growing portfolio of clean energy-powered data centers.

The New York-based company, founded in 2018, specializes in modular data centers that convert surplus renewable energy into high-intensity computing power for applications such as artificial intelligence and Bitcoin mining. By co-locating its facilities with renewable energy producers, including wind, solar, and hydroelectric plants, Soluna helps reduce wasted energy while delivering cost-efficient, sustainable infrastructure for enterprises.

According to the company, the credit facility will be used to refinance existing projects and fund new construction. An initial $12.6 million draw will refinance Soluna’s Texas-based Dorothy 1A and Dorothy 2 sites. Afterwards,  a $22.9 million delayed draw facility will provide additional support for the Dorothy 2 project and support development of the newly launched 166 MW Project Kati 1. 

The agreement also includes an uncommitted $64.5 million accordion facility to finance Soluna’s pipeline of renewable-powered projects and procure AI-related long-lead equipment.

As part of the transaction, Generate Capital received warrants to purchase 4 million shares of Soluna common stock and secured a board observer right. Generate Capital, which has deployed more than $2.4 billion into sustainable infrastructure credit to date, sees the partnership as a natural extension of its investment strategy.

Ryan Miller, Principal at Generate Capital, praised Soluna’s approach of turning underutilized renewable energy into scalable computing power, confirming that infrastructure can solve energy challenges. The partnership, supported by a flexible credit solution, also aims to reinforce Generate Capital’s leadership in infrastructure, combining digital and energy solutions.

Source:

https://www.esgtoday.com/green-data-center-developer-soluna-secures-100-million-financing-from-generate-capital/

https://www.businesswire.com/news/home/20250916279022/en/Soluna-Secures-%24100M-Facility-from-Generate-Capital-to-Expand-Green-Data-Centers