Crusoe ends $1.25B turbine deal with Boom Supersonic

Crusoe Energy, a Denver-based developer of AI data centers that recently closed a $3.9 billion funding round, has terminated its partnership with Boom Supersonic to purchase stationary power turbines. The termination represents a major blow to Boom's nascent energy division and raises questions about the viability of alternative power sources for large-scale AI computing facilities.

The Partnership Falls Apart#

Crusoe had committed to buying 29 of Boom's 42-megawatt Superpower turbines for approximately $1.25 billion, with deliveries slated to begin in 2027. Boom Supersonic CEO Blake Scholl announced the deal's collapse on social media, noting that turbine-powered generation no longer fits Crusoe's immediate strategy for powering its data centers.

"The TL/DR is that turbines are no longer part of Crusoe's near term primary power mix at Abilene/etc., so a launch partnership just didn't make sense," Scholl wrote in the post, referring to Crusoe's sprawling facility in Texas that supplies computing power to OpenAI.

Why the Split Happened#

Crusoe emphasized in a statement that it remains committed to exploring diverse energy solutions tailored to each facility's unique requirements. The company indicated it will continue evaluating turbines alongside wind, solar, battery storage, and grid connections as it expands its portfolio. A spokesperson noted that while Boom had been a collaborative partner, "the partnership isn't the right fit today."

Boom suggested the separation was amicable and not necessarily permanent, stating that the companies might reunite if turbines become central to Crusoe's power strategy in the future.

Implications for Boom's Strategy#

The loss of its anchor customer poses a significant challenge for Boom's energy business division, which raised $300 million last year specifically to commercialize the Superpower turbine line. Scholl indicated the venture capital was essential to funding development of Boom's primary objective: the Overture supersonic passenger aircraft.

Boom claims it has other customers in its pipeline and expects to deploy approximately 250 megawatts of Superpower turbines in the coming year, with targets reaching 1 gigawatt by 2028. However, losing the high-profile Crusoe deal may complicate fundraising and customer acquisition efforts.