Crusoe Scraps Its $1.25 Billion Boom Turbine Deal as AI Campus Power Plans Shift Midstream

Boom Supersonic just lost the customer that was supposed to prove its side business. AI data-center builder Crusoe has walked away from a $1.25 billion deal to power its campuses with Boom's gas turbines.

The launch partnership covered 29 of Boom's 42-megawatt Superpower turbines, with first deliveries slated for 2027. On Friday, Boom CEO Blake Scholl posted on X that the two companies are no longer moving forward. He later deleted a line saying turbines were no longer part of Crusoe's near-term primary power mix at Abilene and other sites.

Turbines yes, Boom no

Crusoe tells a different story about what changed. Spokesperson Andrew Schmitt said its energy plans "haven't changed" and that it still plans to use turbines, "just not Boom's." The company wants to stay flexible across turbines, wind, solar, batteries and the grid, and says the partnership "isn't the right fit today."

Crusoe is not short on money. The Denver company recently raised $3.9 billion, and its Abilene, Texas campus supplies OpenAI through Oracle.

What powers Abilene

The 1.2-gigawatt OpenAI and Oracle campus in Abilene runs on the grid, with gas turbines only as backup. A separate 900-megawatt Microsoft campus in Abilene will run on on-site gas turbines. None of those projects is cancelled by this decision.

Power is the pressure point across the sector. Oracle just invoked force majeure on its New Mexico mega-campus over energy delays, and builders are reshuffling suppliers as they go.

The bigger hit lands on Boom

Boom raised about $300 million last year partly to commercialize Superpower, with turbine profits meant to help fund Overture, its supersonic airliner. Losing its launch customer undercuts that plan, though the jet program itself is not cancelled.

Boom still says it will deliver about 250 megawatts of Superpower turbines to other sites next year and targets 1 gigawatt in 2028. It now has to hit those numbers without the name that was supposed to anchor them.