Crusoe has officially walked away from a $1.25 billion plan to use Boom Supersonic’s stationary gas turbines at its AI data centers. The decision marks a significant shift for both Denver-based companies and raises fresh questions about how AI data centers will secure reliable power at scale.
What Happened to the Crusoe Boom Turbines Deal?
Crusoe, a Denver-based AI data center startup that recently raised $3.9 billion, has ended its plans to use a new line of stationary power plants developed by fellow Denver company Boom Supersonic. The Crusoe Boom turbines agreement would have been the first major commercial deployment of Boom’s new power business.
Founded in 2018 as a bitcoin miner that ran on excess natural gas from oil fields, Crusoe has since become one of the biggest builders of AI data centers. Its portfolio includes a massive campus in Abilene, Texas, that supplies computing power to OpenAI.
Boom Supersonic, meanwhile, is developing a supersonic passenger jet called Overture. Last year, the company launched a new business to sell a version of the engine it’s developing for that jet as natural gas-fired stationary power plants. Its Superpower turbine shares about 80% of the same parts with that airborne engine, called Symphony.
Inside the $1.25 Billion Agreement
Crusoe had signed on to be the first customer for Boom’s stationary power business, agreeing to spend $1.25 billion on 29 of Boom’s 42-megawatt Superpower turbines. The first deliveries were supposed to begin in 2027.
That deal has since fallen apart, according to Boom Supersonic CEO Blake Scholl. In a post on X on Friday, after congratulating Crusoe founders Cully Cavness and Chase Lochmiller on the company’s recent raise, Scholl said the companies are no longer moving forward with the turbine launch partnership. He did note that other customers were in its pipeline.
“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,” he wrote. “Boom will be delivering about 250MW of Superpowers next year to other sites, and we’re targeting 1GW in 2028. We’re grateful for the help Crusoe gave us in shaping Superpower and continue cheering for their successes. The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix.”
Crusoe Confirms the Partnership Is Over
Crusoe confirmed that it is no longer doing business with Boom. A company spokesperson offered context on the decision and the company’s broader energy strategy.
“We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources,” spokesperson Andrew Schmitt said in an email. “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.”
The statement makes clear that the split is less about the technology itself and more about how Crusoe wants to power its expanding footprint.
How Crusoe Powers Its Data Centers Now
Crusoe’s initial 1.2 gigawatt data center in Abilene, built for Oracle and OpenAI, is powered by the grid, according to the company. There is also a gas-turbine power plant that is used for backup power only.
Crusoe is also building a 900 megawatt data center in Abilene for Microsoft, which will be powered by on-site gas turbines. That project shows the company has not abandoned turbines entirely — it has simply changed how and where it plans to use them.
The decision to step back from the Crusoe Boom turbines arrangement reflects a broader reality in the AI infrastructure boom: power strategy is fluid, and data center operators are constantly reassessing which energy sources best fit each site.
What the Split Means for Boom Supersonic
Losing its launch customer is seemingly a setback for Boom, which raised $300 million last year, largely to commercialize the new business. The idea, Scholl told TechCrunch at the time, was to use profits from the stationary power plant business to fund the development of Overture.
Despite the loss, Boom is signaling momentum elsewhere. Scholl’s post points to roughly 250MW of Superpower deliveries next year to other sites and a 1GW target in 2028, suggesting the company still sees meaningful demand for its turbines beyond the Crusoe deal.
Scholl could not be reached for comment before publication.
Why the Crusoe Boom Turbines Decision Matters
The collapse of the Crusoe Boom turbines partnership highlights several broader trends in AI infrastructure.
Power is the bottleneck. AI data centers consume enormous amounts of electricity, and operators are racing to secure generation capacity from multiple sources.
Flexibility beats long-term commitments. Crusoe’s statement emphasizes staying flexible and choosing solutions site by site, a strategy that may become more common as energy markets shift.
Launch customers carry risk. For hardware makers like Boom, landing a first major customer is a milestone — but if that customer’s needs change, the launch plan can unravel quickly.
Diversification is the norm. Grid power, natural gas, wind, solar, and batteries are all part of the mix, and no single source appears to be winning outright.
For now, Crusoe will continue building AI factories powered by a blend of energy sources, while Boom pursues other customers for its Superpower turbines. Whether the two Denver companies team up again remains an open question — one that Scholl himself left on the table.
