Soluna Holdings has completed its Project Kati 1 facility in Willacy County, Texas, energizing the final 14 megawatts on schedule and pushing the company's total operating capacity to approximately 206 MW.

The Albany, New York-based developer simultaneously announced that the entire 166 MW Kati campus, encompassing both the completed first phase and a planned AI expansion, has received a conditional Base Load classification in ERCOT's Batch Zero interconnection process.

A Campus Completed on Time and on Budget

The energization of Kati 1's last 14 MW brings the first phase of the Texas wind-powered campus to its full 83 MW capacity. Soluna said every phase of Project Kati 1 was delivered on time and with infrastructure costs on budget, fulfilling a timeline the company outlined during its second-quarter earnings call. The completion raises Soluna's total operating capacity to approximately 206 MW across its portfolio.

Project Kati 1 began energization in February 2026 following ERCOT approval and proceeded in stages.

The first portion, Kati 1A, completed its 48 MW on April 1 and was filled by Galaxy Digital. The remaining 35 MW was energized in phases through the summer.

A co-mining agreement with Bitdeer, announced in August, is now underway, with equipment being delivered and deployed at the site. The Kati campus is powered by the Las Majadas wind energy project and is built behind the meter, allowing it to convert stranded renewable energy into computing capacity without requiring transmission upgrades or participation in standard grid-connected interconnection queues.

ERCOT's Batch Zero and What Base Load Classification Means

ERCOT's Batch Zero is a transitional process the grid operator introduced to evaluate large load interconnection requests on a system-wide basis, replacing its previous project-by-project approach.

A Base Load classification within that framework means a project's interconnection capacity is preserved on the basis of prior study work.

It also means the project is not subject to further reliability evaluation or megawatt allocation within the Batch Zero study.

ERCOT reported that more than 438,000 MW of large load interconnection requests had entered its queue as of mid-2026, with nearly 90 percent of that volume coming from data centers.

Within that landscape, Soluna said the full 166 MW Kati campus, covering both Kati 1 and the planned Kati 2 AI expansion, has been conditionally classified as Base Load. The classification remains conditional.

ERCOT may remove a project from Batch Zero if the applicant does not respond to its information requests as part of an ongoing verification process. Soluna said it is participating in the verification process and expects the full 166 MW to be confirmed as Base Load.

Kati 2 and the AI Expansion Ahead

While Kati 1 is dedicated to Bitcoin hosting, the second phase of the campus, Kati 2, is planned to add another 83 MW for artificial intelligence and high-performance computing workloads.

The Base Load classification secured through Batch Zero covers the entire 166 MW campus, including this planned second phase.

Soluna said it continues to advance a broader development pipeline of approximately 6.3 gigawatts.

That pipeline includes more than 650 MW of AI and high-performance computing capacity in development across Kati 2 and another project, referred to as Project Dorothy 3.

Leadership Cites the Behind-the-Meter Model

John Belizaire, chief executive of Soluna, pointed to ERCOT's classification as validation of the company's approach to siting data centers alongside existing generation assets rather than waiting for grid capacity.

"This is proof that the Soluna model works," Belizaire said. "We build where the power already is, and we bring generation with us, and ERCOT's framework recognizes exactly that. Kati 1 is finished and energized today, and our full 166 megawatts is positioned as Base Load while much of the market is still waiting to learn what it will be allocated."

Soluna describes its strategy as co-locating digital infrastructure with wind, solar, or hydroelectric power plants to serve computing applications including Bitcoin mining and generative AI.

The company uses its proprietary MaestroOS software as part of its operational approach.

With Kati 1 complete and Kati 2 in development, the company's Texas campus is set to double in capacity if the second phase proceeds as planned.