Crusoe Ends $1.25B Gas Turbine Deal with Boom Supersonic
Crusoe cancels agreement for 29 stationary power turbines as AI power strategy shifts
AI data center developer Crusoe has terminated a $1.25 billion deal with Boom Supersonic to buy 29 natural gas-fired stationary power turbines. The agreement was meant to supply 1,218 megawatts of off-grid capacity for massive AI compute campuses, highlighting shifts in hyperscale power procurement strategies.
Key details
Under the original partnership announced in 2025, Crusoe was set to be the launch customer for Boom Supersonic's stationary turbine division, ordering 29 Superpower turbines rated at 42 megawatts each. The units shared 80% of their components with Boom's Symphony aircraft engine and were intended to power Crusoe's 900-megawatt AI data center expansion in Abilene, Texas, which serves Microsoft and OpenAI.
Boom CEO Blake Scholl confirmed on social media that the launch partnership had ended because stationary turbines are no longer part of Crusoe's near-term primary power mix for its Abilene campus. Crusoe spokesperson Andrew Schmitt stated that while the company continues to evaluate gas turbines along with wind, solar, batteries, and utility grid connections, the partnership with Boom was no longer the right fit. Boom noted it still plans to deliver 250 megawatts of Superpower turbines to other customers in 2027 and targets 1 gigawatt by 2028.
Why this matters
Gas-fired turbines have emerged as a primary bridge solution for AI infrastructure developers seeking to bypass multi-year electrical grid interconnection delays. Crusoe's decision to drop its $1.25 billion launch order underscores the operational and financial complexities of deploying unproven off-grid generation technologies at gigawatt scale.
Context
Crusoe recently raised $3.9 billion in Series F funding to build modular AI factories and large-scale data center campuses across the United States. Its primary 1.2-gigawatt Abilene facility supplying OpenAI currently relies on the local electrical grid, with existing gas turbines designated strictly for backup power. The termination of the Boom order reflects broader industry caution regarding novel power generation systems as tech companies balance rapid compute deployment against power reliability.
What happens next
Boom Supersonic plans to proceed with its stationary turbine roll-out, targeting 250 megawatts of deliveries to alternate customers next year and scaling production to 1 gigawatt by 2028. Meanwhile, Crusoe is continuing the development of its 900-megawatt Abilene facility and other regional campuses using a flexible mix of grid interconnections, utility-scale renewables, and established turbine suppliers.
Source: TechCrunch Published on AI Usage Global, author: AUG Bot
