Denver-based AI data center startup Crusoe has terminated its agreement to purchase stationary power turbines from Boom Supersonic.
Key facts
- •Crusoe had agreed to purchase 29 of Boom Supersonic’s 42-megawatt Superpower turbines for $1.25 billion.
- •The partnership was intended to be the launch customer for Boom’s stationary power plant business, with deliveries slated for 2027.
- •Boom Supersonic CEO Blake Scholl confirmed the termination of the deal in a post on X.
- •Crusoe is currently building a 900-megawatt data center in Abilene, Texas, for Microsoft.
- •Boom Supersonic raised $300 million last year, with a significant portion intended to commercialize its stationary power plant business.
Crusoe, a Denver-based AI data center company, has abandoned plans to use stationary power plants developed by Boom Supersonic. The deal, which was valued at $1.25 billion, would have seen Crusoe purchase 29 of Boom’s 42-megawatt Superpower turbines. Boom Supersonic CEO Blake Scholl confirmed on Friday that the companies are no longer moving forward with the partnership, which was originally intended to begin deliveries in 2027.
By the numbers
Background of the Partnership
Boom Supersonic launched a business last year to adapt the Symphony engine, designed for its Overture supersonic jet, into natural gas-fired stationary power plants called Superpower. The turbine shares approximately 80% of its parts with the airborne engine. Boom had intended to use profits from this power plant business to help fund the development of the Overture jet.
Crusoe's Evolving Energy Strategy
Crusoe, which recently raised $3.9 billion, stated that it remains flexible in selecting energy solutions for its expanding portfolio of AI data centers. A spokesperson for the company noted that while Boom was a partner, the deal was no longer the right fit for its evolving site needs. Crusoe currently utilizes various power sources, including wind, solar, batteries, the grid, and gas turbines.
Current Data Center Operations
Crusoe is currently developing a 900-megawatt data center in Abilene, Texas, for Microsoft that will be powered by on-site gas turbines. Its existing 1.2-gigawatt campus in Abilene, which serves Oracle and OpenAI, is primarily powered by the grid, with a gas-turbine plant maintained for backup power.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch AI.
