Project Kati 1 and 2 data center, Santa Monica, Texas

Soluna Holdings' Project Kati is a 166 megawatt wind-powered data center campus on the site of the Las Majadas Wind Farm in the southeast corner of Willacy County, Texas. It is being built in two phases of 83 megawatts, the first for bitcoin hosting with Galaxy as the first customer at 48 megawatts, the second for AI and high-performance computing.

Soluna's chief financial officer, John Tunison, asked the Willacy County Commissioners Court in Raymondville for a tax abatement on February 27, 2025, but no vote was taken because a quorum was not present. "The wind might be blowing, but they can't put it into the grid because the grid is either congested or doesn't need the power at that time," Tunison told commissioners, describing a data center connected behind the meter to take the power instead. He put the first phase at about $40 million for site work, buildings and electrical infrastructure plus up to $45 million of mining machines, said the AI phase would need $1 billion or more, and promised 12 full-time jobs in the first year rising to 18. He also told commissioners the project would add about $2.5 million of longer-term property tax and close to $1 million of school tax. County Judge Aurelio Guerra, a supporter, later said the county had hired a specialist tax abatement attorney and had largely agreed an abatement for phase one, with a second agreement for phase two expected within five years. "And yes, we're giving them an abatement. But needless to say, those abatements will go away in ten years and so, hopefully, we will have more new projects within those ten years," Guerra said.

The groundbreaking was held on September 18, 2025, and Soluna says the air-cooled machines use no water for cooling. By April 2026 Soluna said Kati 1 had reached substantial completion ahead of schedule. In January 2026 it signed a partnership with the developer Metrobloks for Kati 2, on a separate campus just across from Kati 1, starting at more than 100 megawatts for AI and high-performance computing with a roadmap past 300 megawatts, and a possible neocloud tenant under a non-binding letter of intent.