Denver-based Crusoe, a leader in AI data center development, has terminated its partnership with Boom Supersonic to build stationary power plants, putting an end to plans for purchasing 29 Superpower turbines worth $1.25 billion.
Recent Funding Doesn’t Prevent Crusoe from Withdrawing from Turbine Order
Although Crusoe recently raised $3.9 billion in funding, it has decided not to be the inaugural buyer of Boom Supersonic’s Superpower turbines, which were scheduled to power Crusoe’s data centers with 42-megawatt units beginning in 2027. Confirmation of the partnership’s dissolution came from Boom Supersonic CEO Blake Scholl via a public statement on X. Scholl extended congratulations to Crusoe for its progress while clarifying that their joint efforts in the rollout of Boom’s stationary turbine business would not advance. He also reiterated Boom’s ongoing commitment to delivering approximately 250 megawatts of Superpower turbines to other customers in the upcoming year, while aiming for 1 gigawatt (GW) in deployments by 2028.
Crusoe Adopts Flexible Energy Strategy Amid Expansion
After its 2018 start in bitcoin mining using natural gas, Crusoe has grown into a significant force in the U.S. AI data center sector. The company’s principal campus in Abilene, Texas delivers computing capacity to major clients like OpenAI and Oracle. Nationwide, Crusoe is enlarging its footprint with a second 900 megawatt data center underway in Abilene, specifically for Microsoft, which will feature its own on-site gas power turbines.
The scrapped arrangement with Boom Supersonic would have provided Crusoe with 29 turbines based on the Symphony engine technology designed for the Overture supersonic jet—Superpower turbines that reportedly share 80% of parts with the aviation version. Crusoe spokesperson Andrew Schmitt noted via email that while the deal is canceled, Crusoe is pursuing a comprehensive approach to energy sourcing, weighing options such as turbines, wind, solar, batteries, and grid-based electricity to best meet operational needs at different sites.
Boom Supersonic Pursues New Customers After Losing Crusoe
Losing Crusoe as the debut buyer marks a notable challenge for Boom Supersonic’s new stationary turbine enterprise. In the prior year, Boom secured $300 million primarily to fund this power generation business, aiming to reinvest the profits into the ongoing Overture jet program. Despite the setback, CEO Scholl emphasized that the company expects significant Superpower turbine installations for other clients soon.
At present, Crusoe’s main Abilene site – initially intended for OpenAI and Oracle – is predominantly powered by the electrical grid, using a backup gas turbine facility. This strategy highlights Crusoe’s policy of evaluating multiple energy sources for its growing network of “AI factories” instead of being tied to a single supplier. Schmitt acknowledged Boom was an excellent collaborator despite the change in plans.
Looking Ahead
Representatives from both companies have acknowledged the positive aspects of their short-lived partnership and remain receptive to future collaboration should their interests align once more. While Boom Supersonic proceeds without Crusoe as its showcase customer, Crusoe continues to accelerate its expansion by leveraging diverse and innovative energy technologies.