# Crusoe drops $1.25B deal for Boom's gas turbines in AI data centers Denver AI startup pivots power strategy amid Texas data center expansion - **Source:** [TechCrunch](https://techcrunch.com) - **Published:** 2026-09-25 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/564a26cf-b090-4e5d-bc18-a123a85f7d1d ## Strategic pivot in power sourcing Crusoe Energy has terminated its $1.25 billion agreement to purchase 29 natural gas-fired turbines from Boom Supersonic. The Denver-based AI data center operator, which recently secured $3.9 billion in funding, is shifting its power strategy for facilities like its 1.2GW Abilene campus serving OpenAI. This decision removes Boom's launch customer for its stationary power plant business, which repurposes 80% of components from its supersonic jet engine technology. ## Boom's commercial setback The collapsed deal represents a significant challenge for Boom Supersonic's $300 million power division venture. CEO Blake Scholl confirmed the partnership dissolution via X, while noting 250MW of Superpower turbines will still deploy to other sites in 2027. The company had planned to use power plant profits to fund development of its Overture supersonic passenger jet. Boom maintains a 1GW deployment target for 2028 despite Crusoe's exit. ## Data center power portfolio Crusoe's Texas operations reveal a diversified energy approach: its initial 1.2GW facility uses grid power with gas-turbine backup, while a new 900MW Microsoft project will employ on-site turbines. Spokesperson Andrew Schmitt emphasized selecting energy solutions per site requirements, including wind, solar and battery options. This flexibility contrasts with Boom's turbine-focused model, highlighting differing infrastructure philosophies between the Denver neighbors. ## Technology crossover challenge Boom's Superpower turbines shared 80% components with its Symphony jet engines, representing an ambitious industrial crossover. The 42MW units were designed to leverage aerospace engineering in stationary power generation. Crusoe's withdrawal removes a key validation case for this technology transfer, though Boom claims other customers remain in its pipeline. The episode underscores the risks of repurposing cutting-edge transportation tech for energy infrastructure. ## Timeline implications The terminated agreement delays Boom's commercialization schedule, with initial turbine deliveries to Crusoe originally planned for 2027. Crusoe's rapid scaling - from bitcoin mining on oil field gas flares to $3.9B AI data centers in eight years - may have outpaced Boom's development cycle. The companies maintain cordial relations, leaving open future collaboration should Crusoe revisit turbine integration in its power mix. ## Regional energy dynamics Abilene, Texas emerges as a strategic battleground for next-gen data center power solutions. Crusoe's campus there serves major AI players while testing hybrid energy models. The region's energy infrastructure and regulatory environment make it a proving ground for innovations like Boom's turbines. This development may influence other operators weighing distributed versus centralized power architectures for compute-intensive facilities. ## Financial ramifications The $1.25B contract cancellation affects both companies' capital deployment strategies. Crusoe recently raised $3.9B for expansion, while Boom secured $300M specifically for power plant commercialization. For Crusoe, the decision reflects calculated portfolio management; for Boom, it necessitates accelerated customer diversification. The event may prompt investors to scrutinize tech transfer business models more closely. ## Industry precedent This rupture between two Denver tech innovators illustrates the complex calculus of energy sourcing for AI infrastructure. As data centers consume increasing power shares, operators must balance innovation with reliability. Crusoe's pivot suggests some may prioritize operational flexibility over technological novelty, even when dealing with adjacent local partners. The outcome may temper enthusiasm for highly specialized power solutions in this sector. ## Sources covering this story - https://techcrunch.com/2026/09/25/crusoe-abandons-1-25b-plan-to-use-boom-turbines-at-ai-data-centers/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._