Crusoe Abandons $1.25 Billion Plan to Use Boom Supersonic Turbines at AI Data Centers

TechCrunch•Published: Sep 26, 2026 04:41 AM IST

Denver-based AI data center startup Crusoe has officially terminated its $1.25 billion agreement to purchase stationary power turbines from Boom Supersonic. The deal, which originally aimed to supply 29 of Boom’s 42-megawatt Superpower turbines for Crusoe's expanding data center infrastructure, was scrapped after the startup shifted its near-term power strategy.

Partnership Termination: Boom Supersonic CEO Blake Scholl confirmed the end of the launch partnership on X, noting that turbines are no longer part of Crusoe's primary power mix.
Financial Scope: The canceled contract was valued at $1.25 billion, representing a significant initial commitment for Boom’s new stationary power business.
Strategic Flexibility: Crusoe stated that it remains flexible in its energy procurement, utilizing a mix of grid power, wind, solar, and batteries to meet the evolving needs of its AI campuses.

The Context & Background

Boom Supersonic had launched its stationary power business to leverage engine technology developed for its Overture supersonic passenger jet, intending to use profits to fund aircraft development. Crusoe, meanwhile, has rapidly scaled its operations, recently raising $3.9 billion to build massive AI data centers for major clients like OpenAI and Microsoft.

Why it matters:The collapse of this deal highlights the volatile intersection of AI infrastructure and energy innovation. As data centers face unprecedented power demands, startups are forced to pivot quickly between energy sources, creating significant uncertainty for hardware suppliers attempting to diversify their revenue streams through new industrial applications.

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