US startup Crusoe drops $1.25b turbine deal for AI data centers
Boom's turbines use technology adapted from its supersonic aircraft propulsion work.
Crusoe, a Denver-based AI data center startup, has abandoned its plans to utilize Boom Supersonic's new line of stationary power plants. Crusoe, which recently raised $3.9 billion, had agreed to spend $1.25 billion on 29 of Boom's 42-megawatt Superpower turbines. The first deliveries were set to commence in 2027. However, the collaboration has now been terminated, according to Boom Supersonic CEO Blake Scholl.
In a post on X, Scholl congratulated Crusoe's founding team but stated that the partnership no longer made sense for Crusoe's short-term power mix. Despite this, Scholl noted that other customers were still on Boom's pipeline. Boom plans to deliver approximately 250MW of Superpowers next year to other sites and aims to reach 1GW in 2028.
Crusoe, on the other hand, remains committed to building AI factories powered by various energy sources, including wind, solar, batteries, and the grid. The company confirmed its decision to TechCrunch, emphasizing its flexibility in choosing energy solutions based on evolving site needs. Crusoe's initial data center in Abilene, Texas, is powered by the grid, with a gas-turbine backup plant.
Additionally, Crusoe is constructing a 900-megawatt data center in Abilene for Microsoft, which will be powered by on-site gas turbines. For Boom, losing Crusoe as a customer represents a setback, as the company raised $300 million last year to commercialize the new business and fund the development of its supersonic jet, Overture.
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