Crusoe abandons $1.25B plan to use Boom turbines at AI data centers
Denver-based AI infrastructure firm Crusoe has officially walked away from a high-profile agreement to utilize stationary power plants developed by Boom Supersonic. The decision marks a significant shift for the data center operator, which recently secured a massive $3.9 billion funding round to accelerate its expansion.
Crusoe, which first gained industry attention as a bitcoin mining operation leveraging stranded natural gas from oil fields, has pivoted to become a major player in the AI data center space. Its portfolio includes a sprawling campus in Abilene, Texas, which provides critical computing capacity for OpenAI.
The End of a $1.25 Billion Partnership
The partnership was originally centered on Boom Supersonic’s foray into the energy sector. While primarily known for its ambitious Overture supersonic passenger jet, the company launched a secondary business unit last year to repurpose its Symphony jet engine technology for stationary power generation.
The resulting Superpower turbine was designed to share approximately 80% of its components with the airborne engine. Crusoe had committed to becoming the launch customer for this technology, signing a deal valued at $1.25 billion for 29 units of the 42-megawatt turbines, with initial deliveries slated for 2027.
However, that arrangement has now been dissolved. Boom Supersonic CEO Blake Scholl confirmed the split via a post on X (formerly Twitter) last Friday. While offering congratulations to Crusoe’s founders, Cully Cavness and Chase Lochmiller, on their recent capital raise, Scholl clarified that the companies are no longer moving forward with the turbine launch collaboration.
“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,” Scholl wrote.
Strategic Shifts in Energy Procurement
Crusoe confirmed the termination of the deal, emphasizing that its energy strategy remains fluid as it scales its operations across the United States.
"We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources," said Crusoe spokesperson Andrew Schmitt. "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."
The company’s current energy footprint is diverse:
- Abilene (Oracle/OpenAI site): Primarily powered by the grid, with gas-turbine plants reserved for backup.
- Abilene (Microsoft site): A 900-megawatt facility currently under construction that will utilize on-site gas turbines.
Impact on Boom Supersonic
For Boom Supersonic, the loss of its launch customer represents a notable hurdle. The company raised $300 million last year, largely to commercialize the Superpower turbine business. The strategy was designed to create a revenue stream from stationary power to help subsidize the expensive development of the Overture jet.
Despite the setback, Scholl remains optimistic about the technology’s trajectory. He noted that Boom is currently on track to deliver approximately 250 megawatts of Superpower turbines to other clients next year, with an ambitious target of reaching 1 gigawatt by 2028.
"We’re grateful for the help Crusoe gave us in shaping Superpower and continue cheering for their successes," Scholl added. "The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix."