Data center developer Soluna Holdings has signed a term sheet for power for a new 120-megawatt (MW) data center co-located with a 200-MW wind farm in South Texas, according to an April 8 news release.

The data center project, called Project Hedy, will be developed in two 60-MW phases to leverage wind energy to power bitcoin mining, artificial intelligence and machine learning while providing grid stability in the Electric Reliability Council of Texas region, Soluna said in a news release. The wind farm is owned by a multinational conglomerate.

“This is another step forward in proving that flexible, large-scale computing can help renewable energy assets reach their full potential,” said Soluna Holdings CEO John Belizaire. “We’re excited to partner with and leverage the exceptional wind resources of Cameron County to power sustainable AI and Bitcoin mining at scale.”

With Project Hedy, Soluna lifts its data center capacity in operation, construction or development to more than 598 MW, the company said.