Status: Under Development / Civil Construction Mobilized | Location: Willacy County, Texas
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.
| Field | Value |
|---|---|
| Project Name | Project Kati 2 (South Texas AI Campus) |
| Location | Willacy County, Texas |
| Status | Under Development / Civil Construction Mobilized |
| Commissioning | Phase 1 (Kati 1) Q1 2026; Kati 2 expected late 2026 |
| Total IT Load | 100 MW (Phase 1 of Kati 2) |
| Total Capacity | 300 MW+ (Full Campus Buildout) |
| Tier Level | Tier III Equivalent (AI-Optimized) |
| Project Type | Hyperscale / AI & HPC Data Center |
| Header | Details |
|---|---|
| City Name | Willacy County |
| Population | 10,236 residents in Raymondville city proper. |
| Urban Agglomeration | Raymondville forms part of the Raymondville Micropolitan Statistical Area, which primarily includes Raymondville and nearby unincorporated areas — but there is no separate “urban agglomeration” data published for just this city. |
| City GDP | City-level GDP stats are not available |
| Per Capita Income | $22,607 ( |
| City Tier | The U.S. does not use “city tier” classifications like India’s Tier-I/Tier-II system. |
| Key Strengths | County seat of Willacy County — central for administration and local services |
| Header | Details |
|---|---|
| Developer / Operator | Metrobloks, LLC |
| Strategic Infrastructure Partner | EDF Power Solutions, Masdar, Spring Lane Capital |
| Construction Contractor | Local Texas Contractors (Mobilized Sept 2025) |
| MEP Engineering | Metrobloks Proprietary Design |
| Network Connectivity | Diverse terrestrial fiber; low-latency path to Mexico |
| Power Infrastructure | Behind-the-meter (BTM) connection to Las Majadas Wind Farm |
| Header | Details |
|---|---|
| Power Capacity | 166 MW Entitlement (scalable to 300 MW+) |
| UPS Redundancy | N+1 Distributed UPS for AI workloads |
| Cooling System | AI-ready Hybrid Air/Liquid Cooling (No water consumption) |
| Connectivity | Carrier-neutral; Cloud-on-ramp via private fiber net |
| PUE Target | 1.15 |
| Energy Mix | 100% Renewable (Wind-powered with ERCOT grid backup) |
| Header | Details |
|---|---|
| Announcement | January 15, 2026 (Partnership Launch) |
| Construction Start | September 18, 2025 (Initial Site Groundbreaking) |
| Phase 1 Go-Live | Expected Q1 2026 (Kati 1 - Bitcoin/AI hybrid) |
| Full Buildout | 2028 |
| Header | Details |
|---|---|
| Total Investment | ~$2.0 Billion+ (Full Buildout Estimate) |
| Funding | $100M Credit Facility (Generate Capital) + Series C Equity |
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