Crusoe Scraps $1.25B Plan to Implement Boom Turbines at AI Data Centers

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    <h2>Crusoe Ends Partnership with Boom Supersonic Amid Strategic Shift</h2>

    <p id="speakable-summary" class="wp-block-paragraph">Denver-based AI data center startup Crusoe, which recently <a target="_blank" href="https://techcrunch.com/2026/09/17/crusoe-raises-3-9b-to-build-massive-data-centers-and-small-modular-ai-factories/">secured $3.9 billion</a>, has discontinued plans to utilize a new line of stationary power plants developed by fellow Denver company Boom Supersonic.</p>

    <h3>From Bitcoin Mining to AI Data Centers</h3>
    <p class="wp-block-paragraph">Founded in 2018, Crusoe initially focused on bitcoin mining using excess natural gas from oil fields. It has rapidly evolved into one of the <a target="_blank" rel="nofollow" href="https://www.wsj.com/tech/ai/the-startup-that-built-openais-biggest-data-center-is-now-making-tiny-ones-71f36a4f">leading builders of AI data centers</a>, including a significant campus in Abilene, Texas, designated for providing computing power to OpenAI.</p>

    <h3>Boom Supersonic's Ambitious Venture</h3>
    <p class="wp-block-paragraph">Boom Supersonic is working on a supersonic passenger jet named Overture and launched a new venture last year to sell a variant of the aircraft's engine as natural gas-fired stationary power plants. Their Superpower turbine shares around 80% of its components with the jet's engine, named Symphony.</p>

    <h3>The Discontinuation of the Partnership</h3>
    <p class="wp-block-paragraph">Crusoe had initially committed to being the first customer for Boom’s new power plant business, agreeing to purchase 29 of Boom’s 42-megawatt Superpower turbines for $1.25 billion, with deliveries expected to commence in 2027. However, this agreement has since been dissolved, as confirmed by Boom Supersonic's CEO Blake Scholl.</p>

    <h3>Future Directions for Boom and Crusoe</h3>
    <p class="wp-block-paragraph">In a recent <a target="_blank" rel="nofollow" href="https://x.com/bscholl/status/2103614826862010443">post on X</a>, Scholl congratulated Crusoe’s founders on their recent financing but stated that the turbine launch partnership would not proceed. He added that Boom would continue to deliver approximately 250MW of Superpowers to other clients next year, with aspirations for 1GW by 2028.</p>

    <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" height="548" width="680" src="https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?w=680" alt="" class="wp-image-3170141" srcset="https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png 1194w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=150,121 150w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=300,242 300w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=768,619 768w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=680,548 680w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=430,346 430w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=720,580 720w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=900,725 900w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=800,645 800w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=668,538 668w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=465,375 465w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=766,617 766w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=659,531 659w, https://techcrunch.com/wp-content/uploads/2026/09/blake-scholl-post.png?resize=50,40 50w" sizes="auto, (max-width: 680px) 100vw, 680px"/><figcaption class="wp-element-caption"><span class="wp-block-image__credits"><strong>Image Credits:</strong>Screenshot/X /</span></figcaption></figure>

    <h3>Crusoe's Commitment to Flexible Energy Solutions</h3>
    <p class="wp-block-paragraph">Crusoe confirmed to TechCrunch that it is no longer pursuing a partnership with Boom. “We build AI factories from the power up and are expanding our campuses nationwide with innovative energy solutions,” stated spokesperson Andrew Schmitt. “As our portfolio grows, we remain flexible in our energy choices—factoring in turbines, wind, solar, batteries, and grid options—adapting to the evolving needs of each site.” Schmitt wished Boom well despite the partnership no longer being a good fit.</p>

    <h3>Impact on Boom Supersonic</h3>
    <p class="wp-block-paragraph">Losing its <a target="_blank" rel="nofollow" href="https://boomsupersonic.com/press-release/boom-supersonic-to-power-ai-data-centers">launch customer</a> is a significant setback for Boom, which <a target="_blank" href="https://techcrunch.com/2025/12/09/boom-supersonic-raises-300m-to-build-natural-gas-turbines-for-crusoe-data-centers/">raised $300 million</a> last year aimed at commercializing its new power plant business. The revenue from this venture was intended to support the development of the Overture jet.</p>

    <p class="wp-block-paragraph">Scholl was unavailable for comment prior to publication; TechCrunch will update this article if he responds.</p>
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Here are five FAQs regarding Crusoe’s decision to abandon its $1.25 billion plan to use Boom turbines at AI data centers:

FAQ 1: What prompted Crusoe to abandon the $1.25 billion plan for Boom turbines?

Answer: Crusoe decided to abandon its plan primarily due to shifting market conditions and uncertainties around the continued viability of the technologies involved, as well as the overall economic landscape impacting funding and investment in renewable energy initiatives.

FAQ 2: What are Boom turbines, and why were they chosen for the data centers?

Answer: Boom turbines are advanced energy generation systems designed for efficiency and lower environmental impact. They were chosen for Crusoe’s data centers to reduce reliance on traditional power sources and improve sustainability in AI operations.

FAQ 3: What are the implications of this decision for Crusoe’s business model?

Answer: Abandoning the plan may lead Crusoe to reconsider its approach to energy sourcing and infrastructure for data centers, potentially pivoting to other technologies or partners. It may also affect long-term strategic goals related to sustainability and operational efficiency.

FAQ 4: How will this impact Crusoe’s AI data center operations?

Answer: While the abandonment of the Boom turbine plan may present challenges in optimizing energy costs and environmental impact, Crusoe will likely seek alternative solutions to maintain the competitiveness and sustainability of its AI data center operations.

FAQ 5: What are the next steps for Crusoe following this decision?

Answer: Following this decision, Crusoe is expected to conduct a thorough review of its energy strategies and explore other renewable energy sources or technologies that can be integrated into its data center operations to ensure efficiency and sustainability.

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What Proportion of the AI Data Center Boom Will Utilize Renewable Energy?

Data Centers: The New Frontier of Investment Outpacing Oil Exploration

A recent report by the International Energy Agency reveals that global investments in data centers are projected to reach $580 billion this year, surpassing the $540 billion expected for oil exploration.

Shifts in the Global Economy: Data vs. Oil

This staggering contrast in spending highlights significant shifts in the global economy. The comparison between data centers and oil is particularly relevant amid rising concerns over how generative AI could impact climate change.

Insights from TechCrunch’s Equity Podcast

In the latest episode of TechCrunch’s Equity podcast, I joined Kirsten Korosec and Rebecca Bellan to discuss these findings.

The Power Demand Dilemma

There’s no doubt that new data centers will demand significant power, potentially stressing already strained electrical grids. However, Kirsten pointed out a silver lining: the growing trend of solar energy financing many of these projects, paving the way for startups innovating in renewable energy.

Funding the Future: Major Investments by Tech Giants

Discussing funding, OpenAI has pledged $1.4 trillion for data center development, with Meta committing $600 billion and Anthropic unveiling a $50 billion plan.

Renewable Energy: A Bright Outlook

Kirsten: “The potential upside lies in companies that focus on renewables and innovative data center designs to mitigate global emissions.”

The U.S. Leading the Charge

Rebecca: “Notably, half of the electricity demand for these data centers is expected to arise from the U.S., with the rest coming from China and Europe.”

Urban Impact: Data Centers in Populated Areas

A notable trend is the proximity of many data centers to urban areas, which can complicate grid connections. As Rebecca highlighted, this necessitates a shift towards renewables—not just for environmental reasons but also for sound business practices.

Innovative Solutions to Power Demands

Kirsten: “Redwood Materials’ new energy division is one to watch, as they repurpose old EV batteries into microgrids, specifically targeting AI data centers. This could mitigate the grid pressure we’ve discussed.”

Challenges Ahead: Will Plans Come to Fruition?

Anthony: “We must consider the implications of such large-scale construction on our living spaces and whether these ambitious data center plans will materialize as intended.”

Government’s Role in Data Center Development

As OpenAI seeks expanded tax incentives, it’s clear that the government will also play a crucial role in supporting these developments in the years to come.

Here are five FAQs regarding the renewable energy aspect of the AI data center boom:

FAQ 1: What is driving the AI data center boom?

Answer: The AI data center boom is primarily driven by the increasing demand for AI applications, cloud computing, and big data processing. As businesses adopt AI technologies, the need for more powerful and efficient data centers has surged, leading to rapid growth in this sector.

FAQ 2: How much of the energy used in AI data centers is sourced from renewable energy?

Answer: Current estimates suggest that a significant portion—up to 50% or more—of the energy used in AI data centers is sourced from renewable energy. This is expected to increase as companies commit to sustainability goals and invest in green energy solutions.

FAQ 3: Why is renewable energy important for AI data centers?

Answer: Renewable energy is crucial for AI data centers because it helps reduce their carbon footprint and overall environmental impact. As the demand for data centers grows, relying on clean energy sources becomes vital in combating climate change and promoting sustainable practices in technology.

FAQ 4: What types of renewable energy are commonly used in AI data centers?

Answer: Common types of renewable energy used in AI data centers include solar, wind, and hydroelectric power. Many data centers are increasingly investing in on-site renewable energy projects or sourcing energy from sustainable utilities to meet their operational needs.

FAQ 5: How can AI data centers improve their energy efficiency?

Answer: AI data centers can improve their energy efficiency by implementing advanced cooling technologies, utilizing AI for energy management, optimizing server configurations, and utilizing renewable energy sources. These measures not only reduce energy consumption but also lower operating costs.

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