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AI Data Center Abandons Turbine Deal
26 Sep
Summary
- AI data center startup Crusoe canceled a $1.25 billion deal for power plants.
- Boom Supersonic's stationary power plants were to be developed for Crusoe.
- Crusoe cited evolving energy needs for canceling the partnership.
Crusoe, an AI data center startup that recently secured $3.9 billion in funding, has called off its planned acquisition of stationary power plants from Boom Supersonic. The initial agreement, valued at $1.25 billion, included 29 of Boom's 42-megawatt Superpower turbines, with deliveries anticipated to commence in 2027.
Boom Supersonic, known for its supersonic jet development, launched its stationary power plant business last year, leveraging technology from its Overture jet engine. Crusoe had committed to being the inaugural customer for this new venture. However, Boom Supersonic CEO Blake Scholl confirmed that the companies are no longer proceeding with the turbine launch partnership, as turbines are not part of Crusoe's immediate primary power strategy for its facilities.
Despite this setback for Boom, which had aimed to fund its supersonic jet development with profits from its power plant division, the company stated that other customers are in its pipeline. Boom expects to deliver approximately 250MW of Superpower turbines in the upcoming year and aims for 1GW by 2028. Crusoe reiterated its commitment to utilizing diverse energy sources, including turbines, wind, solar, batteries, and the grid, adapting solutions to the specific requirements of each new campus.
