Crusoe, an AI data center startup based in Denver, has ended a $1.25 billion plan to buy power turbines from Boom Supersonic. Boom CEO Blake Scholl shared the news in a post on X on Friday, September 25.
The deal had made Crusoe the first customer for Boom's new power business. Both companies are based in Denver.
What the Deal Covered
Crusoe had agreed to buy 29 of Boom's Superpower turbines. Each turbine produces 42 megawatts of power and runs on natural gas.
The first deliveries were set to begin in 2027. That plan is now off.
Boom is best known for building a supersonic passenger jet called Overture. Last year, it launched a business selling a version of its jet engine as a stationary power plant.
The Superpower turbine shares about 80% of its parts with Symphony, the engine Boom is building for Overture.
Boom raised $300 million last year, mostly to bring the turbine business to market. Scholl said at the time that profits from the turbines would help pay for Overture's development.
What Each Company Said
In his post, Scholl first congratulated Crusoe founders Cully Cavness and Chase Lochmiller on the company's recent fundraising. He then said the turbine partnership would not move forward.
Scholl's first version of the post said turbines were no longer part of Crusoe's near-term main power mix at its Abilene, Texas, site and others. He later removed that line.
Crusoe spokesperson Andrew Schmitt told TechCrunch the company's energy plans "haven't changed." He said Crusoe still plans to use turbines, "just not Boom's."
"As our portfolio grows, we stay flexible, choosing the energy solutions that are right for each site as its needs evolve," Schmitt said. He listed turbines, wind, solar, batteries and the grid as options.
Schmitt called Boom "a great partner" but said the partnership "isn't the right fit today."
Crusoe was founded in 2018 as a bitcoin miner. It used extra natural gas from oil fields to power its mining machines.
The company has since become one of the largest builders of AI data centers. It recently raised $3.9 billion.
Its first 1.2 gigawatt data center in Abilene was built for Oracle and OpenAI. It runs on grid power, with a gas turbine plant used only for backup.
Crusoe is also building a 900 megawatt data center in Abilene for Microsoft. That site will run on gas turbines located on-site.
Boom says it still has other customers lined up. Scholl said the company will deliver about 250 megawatts of Superpower turbines to other sites next year and is targeting 1 gigawatt in 2028.
"The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix," Scholl wrote.
