Crusoe Drops $1.25B Boom Supersonic Turbine Deal
Denver‑based AI data‑center startup Crusoe has abandoned a $1.25 billion contract to install Boom Supersonic’s Superpower turbines at its Abilene, Texas, campus. The decision follows a shift in Crusoe’s energy strategy and a reassessment of the turbines’ fit with its near‑term power mix. Boom Super…
By Felo News Desk · Published
Denver‑based AI data‑center developer Crusoe has called off a $1.25 billion deal to install 29 of Boom Supersonic’s 42‑megawatt Superpower turbines at its Abilene, Texas, campus. The move comes after the startup re‑evaluated its power strategy and decided the turbines would not fit its near‑term energy mix.
Background: From Bitcoin Mining to AI Powerhouses
Founded in 2018, Crusoe began as a bitcoin miner that leveraged surplus natural gas from oil fields. Over the past five years, it has pivoted to become one of the largest builders of AI data centers in the United States. Its flagship campus in Abilene supplies computing power to OpenAI, while a new 900‑megawatt facility for Microsoft is under construction. The company’s growth has been fueled by a $3.9 billion funding round that attracted investors such as Oracle and Microsoft.
What Was the Boom Supersonic Deal?
Boom Supersonic, the Denver firm behind the Overture supersonic passenger jet, launched a new business last year to sell a version of the jet’s engine as a natural‑gas‑fired stationary power plant. The Superpower turbine shares roughly 80 % of its components with the Overture’s airborne Symphony engine. Crusoe had signed on as the first customer, agreeing to purchase 29 turbines for a total of $1.25 billion, with deliveries slated to begin in 2027.
Why the Partnership Fell Apart
On Friday, Boom Supersonic CEO Blake Scholl posted on X that the companies were no longer moving forward with the turbine launch partnership. He explained that the turbines would no longer be part of Crusoe’s near‑term primary power mix at Abilene, making the partnership “not make sense.” Scholl added that Boom would still deliver about 250 MW of Superpowers to other sites next year and aims for 1 GW in 2028. He thanked Crusoe for its role in shaping the Superpower design and expressed hope for future collaboration if turbines become a primary power source for Crusoe.
Crusoe confirmed the decision in a statement to TechCrunch. “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. “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.”
Impact on Crusoe’s Energy Strategy
Crusoe’s initial 1.2‑gigawatt Abilene data center, built for Oracle and OpenAI, is currently powered by the grid, with a gas‑turbine plant used only for backup. The upcoming 900‑MW Microsoft campus will rely on on‑site gas turbines. By dropping the Boom turbines, Crusoe signals a continued preference for a mix of grid, on‑site gas, and renewable sources, rather than a single large stationary plant.
What This Means for Boom Supersonic
The loss of Crusoe as a launch customer is a setback for Boom Supersonic, which raised $300 million last year to commercialize its stationary power plant business. The company had hoped to use profits from the turbines to fund the development of the Overture jet. While the partnership with Crusoe ended, Boom still plans to deliver turbines to other customers and remains optimistic about future opportunities.
Next Steps and Unresolved Questions
Crusoe will continue to evaluate energy solutions for its expanding portfolio, potentially integrating wind, solar, batteries, and grid power as needed. Boom Supersonic will focus on securing other customers for its Superpower line. It remains unclear whether the two companies will revisit a partnership if Crusoe’s energy needs shift toward large stationary turbines in the future.
Both firms are navigating the rapidly evolving AI infrastructure market, where power supply reliability and sustainability are increasingly critical. The decision underscores the importance of aligning technology solutions with a company’s specific operational timelines and energy goals.
Key facts
- Crusoe cancels $1.25 billion deal with Boom Supersonic
- Superpower turbines share 80% parts with Overture jet engine
- Crusoe’s Abilene campus currently uses grid and backup gas turbines
- Boom Supersonic will still supply turbines to other sites
- Loss of launch customer may impact Boom’s funding strategy
Why it matters
The collapse of this high‑profile partnership highlights the challenges AI data‑center operators face in securing reliable, cost‑effective power sources. It also signals that even innovative turbine technology may not fit every customer’s timeline or strategy.
Frequently asked questions
What is the Superpower turbine?
It is a natural‑gas‑fired stationary power plant developed by Boom Supersonic, sharing about 80% of its components with the company’s Overture jet engine.
Why did Crusoe drop the partnership?
Crusoe determined the turbines would not fit its near‑term primary power mix at Abilene, making the partnership unfeasible.
Will Crusoe use turbines elsewhere?
Crusoe remains open to different energy solutions, including turbines, but will choose the best fit for each site.
Sources
- [1] techcrunch.com — originally reported as “Crusoe abandons $1. 25B plan to use Boom turbines at AI data centers”
