Crusoe drops $1.25B plan to buy Boom turbines for AI data centers

In short: Crusoe says it is no longer moving forward with a planned $1.25 billion deal to buy natural gas turbines from Boom Supersonic to power AI data centers.

What happened

Crusoe, a Denver company that builds large data centers for AI work (warehouses full of computers), has ended plans to use Boom Supersonic’s stationary power plants. Boom is best known for working on a supersonic passenger jet, but it also started selling a land-based version of its jet engine as a power source.

Crusoe had agreed to buy 29 of Boom’s “Superpower” turbines for $1.25 billion, with deliveries expected to start in 2027. A turbine is basically a large machine that burns natural gas to generate electricity, like an on-site power station.

Boom CEO Blake Scholl said on X that turbines are no longer part of Crusoe’s “near term primary power mix” for places like Crusoe’s Abilene, Texas campus. Crusoe confirmed to TechCrunch that it is no longer doing business with Boom. Crusoe also said it plans to stay flexible and use different energy sources depending on the site, including wind, solar, batteries, turbines, and the electric grid.

Why it matters

AI data centers use a lot of electricity, and companies are still figuring out where that power will come from, and how reliable and affordable it will be. This deal falling apart is a reminder that energy plans for data centers can change quickly, even after big announcements and large price tags.

Source: TechCrunch AI