Applied Digital shares rose Wednesday after the company agreed to help develop a planned 50-megawatt artificial-intelligence and high-performance-computing data center near Silverton, Texas, while Roth/MKM reinstated coverage with a Buy rating and a $35 price target.
The project will be developed at Soluna Holdings’ Dorothy 3 site in Briscoe County. Applied is expected to provide development capital and hold 51% of the project company. Soluna will retain 49% and contribute land and power-related assets. The first phase is planned beside the 150-megawatt Briscoe Wind Farm and is expected to use both wind generation and grid power.
The transaction is not yet complete. Closing is targeted for the end of 2026, subject to conditions that include a Briscoe County tax abatement, corporate approvals, title policies, operating agreements, power arrangements and definitive leases. ChronoScale Holdings, an AI and accelerated-computing company majority-owned by Applied, has signed a nonbinding letter of intent to lease the planned facility, but a final lease is not guaranteed.
Roth/MKM analyst Bryan Baratian’s renewed coverage added a second source of support for the stock during the session. The $35 target was tied to his Buy recommendation, while market coverage identified the Texas venture and analyst call as the main catalysts behind an early gain of roughly 3%.
The deal expands Applied’s shift from its earlier blockchain-hosting roots toward large AI infrastructure campuses. The company has also reported reaching ready-for-service status at a North Dakota facility, giving investors another recently announced milestone to weigh alongside the proposed Texas development. The immediate next steps are securing the required approvals and final agreements before construction and leasing commitments can proceed.