The disclosure and our analysis
Evidence dates
Evidence: TDLR project registration TABS2027003019, registered October 7, 2026 and read October 14, 2026; Soluna Form 8-K filed June 9, 2026 describing a June 3 joint venture agreement; Soluna second quarter release of August 13, 2026; Soluna release of September 8, 2026; Soluna and Metrobloks release of January 15, 2026.
What the filing shows
The registration names the project Project Kati II and the facility MFE-A-Kati2 Building 1, at 1392 FM 1420 in the Santa Monica area of Willacy County. The owner is Soluna KK Energy Service Co LLC of Albany, New York. The design firm is HKS, Inc. of Dallas. [Source 1]
The scope of work describes an AI data center with a critical IT load of about 112 MW in a single story building of about 471,884 square feet. The estimated cost is $471.8 million. The filing says the project is privately funded, on private land, for private use. It lists an estimated start of October 8, 2026 and estimated completion of October 8, 2027. The tenant field reads Not Assigned. [Source 1]
TDLR registration is an accessibility review filing. It is not a building permit and does not establish that construction has begun.
How this fits Soluna's disclosures
Soluna said in January it had signed a nonbinding memorandum with Metrobloks to co develop Project Kati 2, also called MB MFE-A, targeting an initial 100+ MW of critical IT for AI and high performance computing. [Source 5] On June 3, 2026, a Soluna subsidiary signed a joint venture agreement with a Metrobloks managed entity. Soluna's 8-K describes Phase I as a 100 MW critical IT data center development and Phase II as an additional 250 MW of critical IT. Soluna holds the Class A interests and manages the venture. After Soluna recovers its capital, a 14% IRR and $100,000 per gross PPA MW, further distributions split 50/50. [Source 2] Soluna's August release repeats the 100 MW and 250 MW phases. [Source 3]
Soluna's September 8 release described Kati 2 as a planned 83 MW phase for AI and high performance computing, alongside the energized 83 MW Kati 1 phase used for Bitcoin hosting. It did not state the power basis of that figure. [Source 4]
The sources use different figures: about 112 MW of critical IT in the TDLR filing, 100 MW of critical IT for Phase I in the joint venture filing, and 83 MW in the September release. We do not combine or reconcile them. The TDLR figure is the most recent and the only one tied to a single registered building.
Buyer analysis
This is our analysis.
**A real building filing, not yet a delivery date.** The registration gives a building size, cost, designer and a target completion of October 2027. Those are estimates on a state filing. Buyers should ask for the construction start, energization schedule and commissioning plan in writing.
**Power and curtailment terms matter here.** Kati is a wind powered campus. Soluna's September 8 release reported a conditional ERCOT Base Load classification for the full Kati campus. [Source 4] Buyers should confirm whether the AI building's power is grid backed, behind the meter or both, and what curtailment exposure applies.
**Not open inventory.** No tenant is assigned on the filing, but that does not mean capacity is available. Soluna has not published pricing or a leasing offer.
