Crusoe Walks Away From $1.25 Billion Boom Turbine Deal

Crusoe has abandoned a $1.25 billion agreement to buy 29 gas-fired turbines from Boom Supersonic, killing the Denver startup's launch partnership for its new stationary power business just as it ramps toward first deliveries in 2027.

Crusoe, the AI data center builder that recently raised $3.9 billion, had signed on as the first customer for Boom's Superpower turbines — 42-megawatt stationary power plants derived from the engine the company is developing for its supersonic passenger jet, Overture. Boom CEO Blake Scholl confirmed the deal has fallen apart.

"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 wrote Friday in a post on X, after congratulating Crusoe founders Cully Cavness and Chase Lochmiller on their recent raise. He noted other customers remain in the pipeline.

The split is a setback for Boom, which raised $300 million last year largely to commercialize the power plant business. Scholl told TechCrunch at the time that profits from stationary power would fund development of Overture.

From Bitcoin Miner to AI Builder

Crusoe, founded in 2018 as a bitcoin miner powered by excess natural gas from oil fields, has become one of the biggest builders of AI data centers. Its flagship campus in Abilene, Texas, supplies computing power to OpenAI. Both Crusoe and Boom are headquartered in Denver.

Boom launched its power business last year. The Superpower turbine shares about 80% of its parts with the Symphony, the engine Boom is developing for Overture. Crusoe's order — 29 turbines worth $1.25 billion, with first deliveries slated for 2027 — was the cornerstone of that effort.

Crusoe confirmed it is no longer doing business with Boom.

"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."

Abilene's Power Mix

Crusoe's initial 1.2-gigawatt data center in Abilene, built for Oracle and OpenAI, runs on grid power, according to the company. A gas-turbine plant on site serves backup only. Crusoe is also building a 900-megawatt Abilene data center for Microsoft, which will be powered by on-site gas turbines.

Scholl said Boom still plans to scale the turbine business without its anchor customer. "Boom will be delivering about 250MW of Superpowers next year to other sites, and we're targeting 1GW in 2028," he wrote. "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."

Scholl could not be reached for further comment before publication.

Losing a $1.25 billion launch order raises the stakes for Boom's 250-megawatt delivery target next year — the first real test of whether the turbine business can bankroll Overture without its first and largest customer.