Crusoe Drops $1.25B Boom Turbine Plan

Crusoe, a builder of AI data centers, has dropped its plan to deploy stationary turbines from Boom Supersonic. The deal was valued at $1.25 billion and called for 29 turbines in the 42MW class. Deliveries were to begin in 2027, but the partnership has been dissolved. According to reporting by Kirsten Korosec of TechCrunch AI, Boom CEO Blake Scholl disclosed the split in a post on X.

Crusoe is a Denver-based startup that recently raised $3.9 billion. Founded in 2018, it initially mined bitcoin using excess natural gas from oil fields. It later shifted its focus to AI computing infrastructure and is now gaining prominence through large-scale facility construction. A prime example is its large facility in Abilene, Texas, which supplies computing capacity for OpenAI. Demand for generative AI video creation is also driving compute demand, and the broadening use cases highlighted by AI Video Generator MoneyPrinterTurbo Surges on GitHub are increasing the importance of securing power.

The breakup reflects the reality of power procurement for AI factories. Each project requires a tailored mix of turbines, grid power, renewables, and batteries. Below is a breakdown of the plan, Abilene’s power mix, key technology points, and the companies’ positions.

$1.25 Billion Plan for 29 Units

Crusoe was set to become the first customer for Boom’s new power business. The procurement covered 29 stationary Superpower turbines for a total of $1.25 billion. Each unit offers output in the 42MW class, for a combined scale exceeding 1GW. Initial deliveries were scheduled to begin in 2027.

Boom is a Denver company developing the Overture supersonic airliner. Last year, it entered the stationary power generation business as a new venture. The concept was to adapt an engine under development for aircraft and sell it as natural gas-fired power equipment. The partnership with Crusoe was positioned as a flagship case for commercializing that business.

The dissolution was announced in a post dated Sept. 26. Scholl congratulated Crusoe founders Cully Cavness and Chase Lochmiller on their recent fundraising. He then disclosed that the companies would not continue the turbine deployment partnership. He also noted that other customer projects are underway.

Abilene Power Mix: Current Status and Changes

Abilene hosts several large-scale projects. The initial 1.2GW facility was built for Oracle and OpenAI. Its primary power source is the grid, with gas-fired power limited to backup use. That configuration differs from the premise of the deployment partnership.

Crusoe is also building a 900MW facility in Abilene for Microsoft. That facility plans to use on-site gas-fired power as its primary source. However, that equipment has not been described as Boom-built. Crusoe stresses a policy of selecting the optimal power source for each project.

According to Scholl, the turbines are no longer part of the near-term primary power mix for Abilene and other sites. That change, he said, removed the rationale for proceeding with the deployment partnership. He wrote in his post:

In short, the turbines are no longer part of the near-term primary power mix for Abilene and others. That is why there is no reason to proceed with the deployment partnership.

He also outlined plans to deliver about 250MW to other sites in 2026. He aims to supply 1GW in 2028. He thanked Crusoe for help in shaping the product. He said the companies could partner again if the turbines become part of a future primary power mix.

Boom Superpower: Technology Overview

Superpower is a derivative of the Symphony aircraft engine. According to Boom, it shares about 80% of its parts with the aircraft version. It runs on natural gas and is designed as stationary power for data centers. With output in the 42MW class, it offers capacity equivalent to a mid-size power plant.

The aim is synergy between aircraft development and the power business. By increasing common parts, the design reduces development and manufacturing costs. Mass production could also accelerate maturation of the aircraft engine. Boom had also outlined a plan to channel revenue from the power business into its core operations.

Boom raised $300 million last year. Much of the funding went toward commercializing the new business. Losing its first customer is a headwind in the commercialization process. At the same time, the outlined plan to deliver 250MW signals continued sales activity.

In the stationary turbine market, delivery schedules and maintenance support are critical. Data center operators prioritize certainty over when capacity comes online. Output stability, fuel procurement, and heat exhaust measures are also evaluated. The focus is whether an aviation-derived design can meet those requirements.

A Turning Point for Data Center Power Procurement

Power demand for AI facilities is surging. 1GW-class projects are planned in many locations, and grid interconnection capacity is becoming constrained. Operators are therefore combining on-site generation with grid power. Configurations combining wind, solar, and batteries are also spreading.

Crusoe originated as a mining operator using surplus gas. It promotes designing facilities starting upstream from power. The company is bringing new facilities online across the U.S. It emphasizes flexibility in selecting power for each project.

The latest decision can be seen as a move to avoid locking into a specific technology. Selections weigh delivery timing, cost, output characteristics, and site conditions. Grid availability also influences decisions. The line between backup and primary power determines project economics.

Competition for gas turbine orders is intensifying in the power equipment industry. New entrants are joining established heavy electrical manufacturers. Data center applications demand short lead times and high availability. The market has reached a stage where track record determines orders.

How the Split Happened and What Both Sides Say

Scholl announced the dissolution in a post on X. Along with congratulations on Crusoe’s fundraising, he explained the revised partnership. He also mentioned delivery plans for other customers and the possibility of a future partnership. The post was written in friendly terms.

Crusoe also confirmed the dissolution to TechCrunch AI. Spokesperson Andrew Schmitt responded by email. The response stressed a policy of building AI factories starting from power. It expressed a commitment to choosing the best power source for each project.

We build AI factories starting from power and are bringing new facilities online across the country. We select the right power source for each project as facility needs evolve. We combine turbines with wind, solar, batteries, and the grid. Boom was an excellent partner, but we determined this partnership was not the right fit.

There is no discrepancy between the two accounts. The reason was a change in power configuration, not a judgment on technological merit. Crusoe says it has not ruled out turbines altogether. Boom also expressed support for Crusoe’s success.

The focus now is on alternative suppliers and securing delivery schedules. Attention is on the on-site power configuration for the 900MW Microsoft facility. Boom needs to demonstrate a track record through 250MW in deliveries to other customers. Achieving the 1GW target will require establishing mass production.

Editorial Opinion

In the short term, we expect Crusoe’s reshuffle of power suppliers to accelerate. Focus will fall on the supplier of on-site gas-fired power for the 900MW Abilene project. We assess that Boom faces the challenge of building trust through 250MW in deliveries to other customers.

In the long term, we expect co-design of AI factory siting and power to become standard. Cross-industry technologies such as aviation-derived turbines will continue to enter the market. We assess that selecting mixes combining the grid, renewables, and batteries will drive competitiveness.

The remaining question is the technical reason for excluding the turbines. Whether economics, delivery timing, or output stability was the main factor has not been disclosed. We see the conditions for Crusoe to re-partner in the future as unclear.

References

• “Crusoe abandons $1.25B plan to use Boom turbines at AI data centers”, by Kirsten Korosec — TechCrunch AI, 2026-09-25T23:11:10.000Z (ARR)
• Source URL: https://techcrunch.com/2026/09/25/crusoe-abandons-1-25b-plan-to-use-boom-turbines-at-ai-data-centers/