Crusoe, an AI data center startup based in Denver, which recently secured $3.9 billion in funding, has decided not to proceed with its plans to utilize a new series of stationary power plants from Boom Supersonic, another Denver-based company.
Initially established in 2018 as a bitcoin mining operation powered by surplus natural gas from oil fields, Crusoe has since evolved into a leading developer of AI data centers, notably including a substantial facility in Abilene, Texas, which provides computational resources to OpenAI.
Boom Supersonic, currently developing the Overture supersonic passenger jet, ventured into a new business last year to market a version of its jet engine as natural gas-fueled stationary power plants. This Superpower turbine shares approximately 80% of its components with the airborne Symphony engine.
Crusoe had initially committed to being the inaugural client for this venture, consenting to a $1.25 billion investment for 29 of Boom’s 42-megawatt Superpower turbines, with initial deliveries anticipated in 2027. However, this agreement has since been terminated, as stated by Boom Supersonic CEO Blake Scholl.
On Friday, via a post on X, Scholl congratulated Crusoe founders Cully Cavness and Chase Lochmiller on their firm’s recent fundraising success, then announced that the turbine launch collaboration between the two companies would not proceed. He did, however, mention that Boom had other potential customers lined up.
“In essence, turbines are no longer central to Crusoe’s immediate primary power strategy for locations like Abilene, rendering a launch partnership impractical,” he explained in his post. “Boom plans to supply approximately 250MW of Superpowers to various sites next year, with a target of 1GW by 2028. We appreciate Crusoe’s input in developing Superpower and continue to support their achievements. The long-term outlook is promising, and we anticipate a potential future collaboration if turbines align with their primary power requirements.”
Crusoe verified to TechCrunch that its business relationship with Boom has concluded.
“We construct AI facilities starting with power infrastructure, and we are activating new campuses nationwide, utilizing various innovative energy sources,” stated spokesperson Andrew Schmitt via email. “As our operations expand, we maintain adaptability, selecting optimal energy solutions for each site as its demands change — encompassing turbines, alongside wind, solar, batteries, and grid power. Although Boom has been an excellent collaborator, this particular partnership is not currently suitable. We extend our best wishes to them.”
According to the company, Crusoe’s initial 1.2 gigawatt data center in Abilene, constructed for Oracle and OpenAI, draws power from the grid. A gas-turbine power plant is also present, serving exclusively as a backup power source. Additionally, Crusoe is developing a 900 megawatt data center in Abilene for Microsoft, which will be energized by on-site gas turbines.
The loss of its initial customer appears to be a setback for Boom, especially since the company secured $300 million last year, primarily to commercialize this new venture. Scholl had previously informed TechCrunch that the strategy involved leveraging profits from the stationary power plant segment to finance the Overture’s development.
Scholl was unavailable for comment prior to this publication; TechCrunch will provide updates should he issue a statement.