Soluna Receives $35M From Spring Lane to Build Green Data Centers

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.

Read more: Can Crypto Miners Make the World Greener?