Project Kati 2 | High-Performance AI Compute & Cloud Infrastructure Platform

Status: Under Development / Civil Construction Mobilized   |   Location: Willacy County, Texas

Project Overview

Project Kati 2 represents the vanguard of "Renewable Computing," a strategic shift in data center development that co-locates high-density digital infrastructure directly with renewable energy generation. Launched officially on January 15, 2026, through a Memorandum of Understanding (MOU) between Soluna Holdings and Metrobloks, the project is located in Willacy County, Texas, specifically designed to bypass the chronic power shortages and grid congestion currently facing traditional data center hubs like Northern Virginia and Dallas.

The campus is situated on the site of the Las Majadas Wind Farm, utilizing a "behind-the-meter" (BTM) power purchase agreement. This allows the data center to consume excess or "curtailed" energy—power that would otherwise be wasted due to transmission limits—making it one of the most sustainable facilities in the world. While the first phase (Kati 1) focused on Bitcoin hosting, Kati 2 is engineered specifically for the AI revolution. It introduces a dedicated 100+ MW block of Critical IT capacity designed for High-Performance Computing (HPC) and Large Language Model (LLM) training.

Technically, the project is a departure from traditional builds. It utilizes an AI-ready modular design provided by Metrobloks, which supports rack densities significantly higher than standard enterprise facilities. By incorporating hybrid cooling systems that favor air-cooling and liquid-to-chip technology, the facility maintains a target PUE of 1.15 without the massive water consumption typically required by hyperscale sites. This "water-less" cooling approach is a critical advantage in the arid South Texas climate.

From an investment perspective, the project is backed by a robust consortium including Generate Capital, Masdar, and EDF Renewables. A recent $100 million credit facility from Generate Capital has accelerated the buildout, while Metrobloks leads the leasing and operations strategy. The site has already attracted significant interest, currently operating under a non-binding letter of intent from a major "neocloud" tenant looking for immediate GPU-ready capacity.

The socio-economic impact on Willacy County is transformative. As a Tier 3 industrial region, the county has traditionally relied on agriculture. Project Kati 2 introduces high-paying technical roles and a massive expansion of the local tax base. By transforming "stranded" wind energy into a valuable global compute resource, Project Kati 2 serves as a blueprint for the future of green AI infrastructure, proving that the next generation of the internet can be powered by carbon-free energy without straining the public utility grid.

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