Crusoe Scraps $1.25 Billion Initiative to Deploy Boom Turbines at AI Data Facilities
Crusoe, an AI data center startup based in Denver that recently secured $3.9 billion in funding, has decided to cancel plans to utilize a new series of stationary power plants created by local company Boom Supersonic.
Established in 2018, Crusoe began as a bitcoin mining operation leveraging excess natural gas from oil fields. It has since evolved into a major player in the AI data center sector, notably with an expansive facility in Abilene, Texas that provides computational resources to OpenAI.
Boom Supersonic, currently working on a supersonic passenger jet named Overture, initiated a new venture last year to market a variant of the jet’s engine as stationary power plants fueled by natural gas. Their Superpower turbine utilizes roughly 80% of the same components as the aircraft engine, referred to as Symphony.
Crusoe had been the first to sign up as a customer for this initiative, committing to a $1.25 billion purchase of 29 of Boom’s 42-megawatt Superpower turbines, with initial deliveries projected for 2027. However, this agreement has now dissolved, as confirmed by Boom Supersonic’s CEO, Blake Scholl.
In a recent post on X, Scholl congratulated Crusoe’s founders on their funding success, stating that the companies would not proceed with the partnership concerning turbine development. He mentioned there are still other customers interested in their product.
Scholl clarified, “The crux of the matter is that turbines will not be part of Crusoe’s immediate power strategy at Abilene and elsewhere, making the partnership unfeasible.” He added that Boom would deliver around 250MW of Superpowers to different locations next year, targeting 1GW by 2028. He expressed gratitude for Crusoe’s input in refining Superpower and indicated openness to future collaboration if turbines become integral to Crusoe’s power strategy.
Crusoe has confirmed its termination of dealings with Boom. A spokesperson stated, “We create AI facilities starting from the energy source, and we are expanding our campuses nationwide using innovative energy methods. As our portfolio evolves, we remain adaptable and select energy solutions tailored to the specific requirements of each site—these include turbines as well as wind, solar, battery, and grid energy. Although Boom has been an excellent partner, this collaboration is not the right fit at this moment. We wish them all the best.”
The initial 1.2 gigawatt data center in Abilene, developed for Oracle and OpenAI, is primarily powered by the grid, with a gas-turbine power plant available for backup. Additionally, Crusoe is working on a 900 megawatt center in Abilene for Microsoft, which will utilize on-site gas turbines for its power needs.
The loss of its initial customer is viewed as a challenge for Boom, which raised $300 million last year to advance its new business, intending to use profits from the stationary power plant division to further develop the Overture jet.
At the time of publication, Scholl was unavailable for comment; updates will be shared if a response is received.
