Crusoe Walks Away From $1.25B Boom Turbine Deal as AI Power Race Intensifies

Crusoe Technologies has terminated its $1.25 billion deal with Boom Supersonic for 29 Boom Superpower natural-gas turbines intended for AI data centers, as reported by TechCrunch. This move leaves Boom without a launch customer for its new data-center turbine business. However, Crusoe continues to secure gas generation, batteries, and grid power for AI data centers.

The company remains flexible about power sourcing, exploring various options such as turbines, wind, solar, batteries, and grid electricity based on individual site requirements. The breakup occurred months before deliveries were expected to start in 2027. Boom anticipates about 250 MW of Superpower deliveries to other sites next year and targets 1 GW by 2028, although these figures are company projections.

Crusoe's Abilene projects already utilize different power models, including a 1.2-GW grid interconnection and natural-gas backup generation, as well as a 900-MW Microsoft campus with dedicated on-site generation and battery storage. The challenge of grid access is becoming more pronounced, as Texas recently paused new data-center grid approvals due to the high volume of projects in the interconnection queue.

Crusoe has also signed separate turbine agreements with GE Vernova and Bergen Engines, while companies like SpaceX are investing in battery storage to complement their AI data-center infrastructure. The International Energy Agency's April 2026 update projects global data-center electricity use to surge from 485 TWh in 2025 to 950 TWh by 2030, highlighting the bottlenecks in grid infrastructure, energy equipment, and chip manufacturing that are slowing down near-term expansion.

Crusoe's decision to end its partnership with Boom underscores that even billion-dollar power plans can change before equipment is delivered.