Crusoe ends Boom turbine deal

Crusoe, a Denver-based AI data center startup that recently raised three point nine billion dollars, has ended plans to use stationary power plants developed by fellow Denver company Boom Supersonic.

The deal was worth $1.25B

Crusoe had agreed to spend one point two five billion dollars on twenty-nine of Boom's forty-two megawatt Superpower turbines, with first deliveries supposed to begin in twenty twenty-seven.

Boom's new power business

Boom Supersonic, developing a supersonic passenger jet called Overture, launched a new business last year to sell a version of its jet engine as natural gas-fired stationary power plants called Superpower turbines.

Boom CEO announces the split

On Friday, Boom Supersonic CEO Blake Scholl posted on X that the companies are no longer moving forward with the turbine launch partnership, though other customers were in its pipeline.

Scholl's deleted explanation

Scholl initially wrote that turbines are no longer part of Crusoe's near term primary power mix at Abilene and other sites, so a launch partnership did not make sense. He later removed this line.

“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”

Crusoe stays flexible on energy

Crusoe spokesperson Andrew Schmitt said the company's energy plans have not changed and it still plans to use turbines, just not Boom's. Crusoe will choose energy solutions right for each site.

“just not Boom's”

Crusoe's current power setup

Crusoe's initial one point two gigawatt data center in Abilene built for Oracle and OpenAI is powered by the grid. A nine hundred megawatt data center for Microsoft will be powered by on-site gas turbines.

Setback for Boom's strategy

Losing its launch customer is a setback for Boom, which raised three hundred million dollars last year to commercialize the stationary power plant business and fund development of its Overture jet.