Crusoe, the Denver-based AI data-center operator that began as a bitcoin miner and recently raised $3.9 billion, has ended plans to buy a new line of stationary gas turbines developed by fellow Denver company Boom Supersonic. Boom, which is developing the Overture supersonic passenger jet, launched a business to sell a ground-based version of its jet engine as natural gas-fired power plants.
Details of the original deal
The firms had agreed that Crusoe would be the launch customer for Boom’s Superpower turbine, buying 29 units of the 42-megawatt model for a total of $1.25 billion. Deliveries were expected to begin in 2027.
Why the agreement fell apart
Blake Scholl, CEO of Boom Supersonic, said in a post on X on Friday that the turbine launch partnership was no longer moving forward. In the post he wrote, “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 also noted that other customers remain in Boom’s pipeline and that the company expects to deliver about 250 MW of Superpower turbines next year and is targeting 1 GW in 2028.
Crusoe confirmed to TechCrunch that it has stopped doing business with Boom. Spokesperson Andrew Schmitt told TechCrunch by email: “We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources. 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. We wish them well.”
Current power setups at Crusoe sites
Crusoe’s initial roughly 1.2-gigawatt data center in Abilene, built for Oracle and OpenAI, is grid-powered, with an on-site gas-turbine power plant used only for backup. Crusoe is also building a 900-megawatt data center in Abilene for Microsoft that will be powered by on-site gas turbines.
Implications for Boom
Losing Crusoe as a launch customer is a setback for Boom, which raised $300 million last year largely to commercialize the stationary power-plant business. Scholl had previously said Boom intended to use profits from the stationary power plants to help fund development of the Overture supersonic jet.
Scholl expressed appreciation for Crusoe’s role in shaping Superpower and said Boom looks forward to the possibility of teaming up in the future if turbines again become part of Crusoe’s primary power mix. TechCrunch sought further comment from Scholl but had not received a response at publication; the outlet said it would update the story if he replied.
Why this matters
The split highlights how energy strategy choices by large AI-infrastructure operators can change and affect suppliers that seek to enter new markets with derivative technologies. For Boom, the failed $1.25 billion purchase delays a key commercial milestone for its stationary turbine push, even as the company maintains broader delivery and capacity targets for the coming years.
