Business26 September, 20262 min read
Crusoe Cancels $1.25 Billion Boom Supersonic Turbine Deal For AI Data Centers In Abilene
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Crusoe canceled its $1.25 billion deal for 29 Boom turbines. First deliveries were planned to begin in 2027.
Crusoe ends Boom deal
Crusoe abandoned its plan to purchase 29 stationary Superpower gas turbines from Boom Supersonic for artificial intelligence data centers, including a campus in Abilene, Texas. TechCrunch said the agreement was valued at $1.25 billion, with the first deliveries planned to begin in 2027.
“The agreement was valued at $1.25 billion, with the first deliveries planned to begin in 2027.”
Boom Supersonic CEO Blake Scholl said the turbines are no longer part of Crusoe’s near-term plans for primary power supply in Abilene and other locations. Crusoe confirmed the end of the cooperation, and company representative Andrew Schmitt said the developer retains flexibility in selecting energy sources for each site.
What replaces the turbines
Andrew Schmitt said Crusoe’s energy sourcing options include turbines, wind and solar energy, batteries, and the power grid. Crusoe’s first campus in Abilene, Texas, has a capacity of 1.2 GW and was built for Oracle and OpenAI, and the company said it gets its electricity from the grid.
Crusoe said a gas-turbine power plant is used only as backup at that campus, and it is building another 900 MW facility in Abilene for Microsoft. Blake Scholl said Boom plans to deliver Superpower turbines with a total capacity of about 250 MW to other sites next year and is targeting 1 GW in 2028.
Boom’s funding and Overture
Boom Supersonic is developing the Overture supersonic passenger aircraft, and the Superpower turbine was developed from the Symphony engine designed for that jet. TechCrunch said Crusoe had signed on as the first customer for Boom’s stationary power business, agreeing to spend $1.25 billion on 29 of Boom’s 42-megawatt Superpower turbines.
“The move comes after an initial deal that involved spending $1.25 billion on 29 turbines of 42 megawatts each.”
Boom raised $300 million last year primarily to commercialize its stationary power plant business, and the company expected to direct profits from that business toward Overture’s development. Blake Scholl said Crusoe’s launch partnership no longer made sense because the turbines were no longer part of Crusoe’s short-term primary energy mix, while Crusoe said it is bringing new campuses online across the country powered by innovative energy sources.