Crusoe Drops $1.25B Boom Turbine Plan for AI Data Centers

Crusoe, the Denver-based artificial intelligence infrastructure firm, has abandoned its $1.25 billion agreement with Boom Supersonic to utilize the latter’s stationary turbine technology for its data center operations. The decision marks a significant pivot in energy strategy for Crusoe, which recently secured a massive $3.9 billion funding round, and represents a notable setback for Boom’s emerging power generation division.

Originally established in 2018 as a cryptocurrency mining operation that utilized stranded natural gas from oil fields, Crusoe has rapidly transformed into a primary builder of AI data centers. The company currently operates a substantial campus in Abilene, Texas, providing critical computing resources to major players like OpenAI. Its expansion into dedicated AI infrastructure required robust and scalable energy solutions, leading to the initial partnership with Boom Supersonic.

Boom Supersonic, best known for developing the Overture supersonic passenger jet, launched a new commercial venture last year aimed at selling stationary power plants derived from its aerospace engine technology. The Superpower turbine shares approximately 80% of its components with the airborne Symphony engine. Crusoe had been designated as the launch customer for this initiative, committing to purchase 29 units of the 42-megawatt turbines, with deliveries scheduled to commence in 2027.

The collapse of this deal was confirmed by Boom Supersonic CEO Blake Scholl on social media platform X. While congratulating Crusoe founders Cully Cavness and Chase Lochmiller on their recent capital raise, Scholl clarified that the companies were no longer proceeding with the turbine launch partnership. He emphasized that while other customers remain in the pipeline, the specific alignment with Crusoe had dissolved.

“The TL/DR is that turbines are no longer part of Crusoe’s near term primary power mix at Abilene/etc., so a launch partnership just didn’t make sense,” he wrote in the post. “Boom will be delivering about 250MW of Superpowers next year to other sites, and we’re targeting 1GW in 2028. We’re grateful for the help Crusoe gave us in shaping Superpower and continue cheering for their successes. The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix.”

Crusoe independently verified the termination of the relationship in communications with TechCrunch. Company spokesperson Andrew Schmitt highlighted the firm’s adaptive approach to energy sourcing across its growing portfolio of facilities.

“We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources,” Schmitt stated in an email. “As our portfolio grows, we stay flexible, choosing the energy solutions that are right for each site as its needs evolve , including turbines, along with wind, solar, batteries and the grid. While Boom has been a great partner, the partnership isn’t the right fit today. We wish them well.”

Current operations at Crusoe’s Abilene facility illustrate this diversified strategy. The initial 1.2-gigawatt data center, constructed for Oracle and OpenAI, relies on the electrical grid for power, with gas turbines reserved strictly for backup purposes. Meanwhile, a second 900-megawatt data center being built in Abilene for Microsoft will utilize on-site gas turbines for its primary energy needs.

For Boom Supersonic, losing its anchor customer presents a financial challenge. The company raised $300 million last year, with a significant portion allocated to commercializing the Superpower business. Scholl previously indicated that profits from these stationary power sales would help fund the development of the Overture jet. Although Scholl was unavailable for further comment prior to publication, the loss of Crusoe underscores the competitive landscape for next-generation energy technologies in the AI sector.