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Crusoe Abandons $1.25B Boom Turbine Deal as Abilene Data Center Runs on Grid Power

Boom and Crusoe abandon a $1.25B turbine deal. Boom to deliver 250MW to other sites, target 1GW by 2028.

By mitch·6 min read
A turbine stands before a glowing data center at night, symbolizing the abandoned partnership between Boom and Crusoe.

Boom Supersonic CEO Blake Scholl announced Friday in a post on X that Boom and Crusoe are no longer moving forward with their turbine launch partnership. The deal was to spend $1.25 billion on 29 of Boom’s 42-megawatt Superpower turbines, with first deliveries scheduled to begin in 2027. That deal is now dead, and Scholl’s post explains why.

Crusoe is a Denver-based AI data center startup that recently raised $3.9 billion. The two companies had been positioned as partners: Boom launched its new business last year to sell a version of the engine it’s developing for the jet as natural gas-fired stationary power plants, and Crusoe had signed on to be the first customer for that business. The deal’s end leaves both companies in different places.

The Deal That Fell Through

Scholl broke the news himself, posting on X to confirm that Boom and Crusoe have called off their partnership. His TL/DR, stated in his own words, was that turbines are no longer part of Crusoe’s near-term primary power mix at Abilene, so a launch partnership just didn’t make sense.

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Boom has said that other customers are waiting in its pipeline, and Scholl’s first data center in Abilene, built for Oracle and OpenAI, is operated by the grid, with a capacity of 1.2 gigawatt.’s post points to those numbers. He wrote that Boom will be delivering about 250MW of Superpowers next year to other sites, and that the company is targeting 1GW in 2028. He also noted that Crusoe’

Crusoe confirmed the deal’s end to TechCrunch. A spokesperson for the company, Andrew Schmitt, said: “We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources.” The company’s position is that it stays flexible, choosing the energy solutions that are right for each site as its needs evolve — including turbines, along with wind, solar, batteries and the grid.

He added that the partnership isn’t the right fit today, even though Boom has been a great partner. Schmitt also said that the company wishes them well.

The Turbine’s Roots

The Superpower turbine shares about 80% of the same parts with Boom’s Symphony engine, which powers the Overture supersonic passenger jet. Boom launched its new business last year to sell a version of the engine it’s developing for the jet as natural gas-fired stationary power plants. Crusoe had signed on to be the first customer for this business.

Boom is raising $300 million largely to bring the new business to market, and Scholl told TechCrunch at the time that the plan was to use profits from the stationary power plant business to fund development of Overture. The partnership with Crusoe was meant to anchor the launch as the new product’s first customer.

What Scholl Said

Scholl’s post on X offered a direct explanation for the split. “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,” he wrote. He also said that Boom will be delivering about 250MW of Superpowers next year to other sites, and that the company is targeting 1GW in 2028.

He added that the company is grateful for the help Crusoe gave in shaping Superpower and continues cheering for their successes. “The future is long, and we look forward to potentially teaming up if/when turbines become part of their primary power mix,” Scholl wrote.

What Crusoe Said

Schmitt’s rendition of Crusoe’s own words presents a distinct approach. The company is not pulling back. It is shifting course — a move that matches its own principles.

“We build AI factories from the power up, and we’re bringing new campuses online across the country, powered by innovative energy sources,” Schmitt said. He then explained that as the company’s portfolio grows, it stays flexible, choosing the energy solutions that are right for each site as its needs evolve — including turbines, along with wind, solar, batteries and the grid.

The Abilene Picture

In Abilene, Crusoe runs an initial 1.2 gigawatt data center that relies on the grid. The site also hosts a gas-turbine power plant, but it is used solely as a backup. The company is constructing a 900 megawatt facility for Microsoft in the same city, and that one will run on-site gas turbines.

The sequence of dates documents how swiftly the arrangement moved from its anchor launch to being removed from the books. The important dates are:

Date Event
Last year Boom launches new business selling Symphony-derived stationary power plants
Recent Crusoe raises $3.9 billion
Scheduled First Superpower deliveries begin in 2027
Friday Scholl posts on X that the partnership is no longer moving forward

Both companies hailed the partnership as a notable milestone when it was announced. Now it has passed into the past. The reason for the split is not spelled out in detail, but Scholl’s post makes the reasoning plain: the partnership loses its purpose if the customer does not need the product soon.

What It Means

The division serves as a reminder that Big Tech’s appetite for new energy sources can shift on short notice. Crusoe’ has made its position clear: it picks the energy solutions that suit each site as its needs develop.

Scholl’s post references Boom’s pipeline customers and the numbers behind them. The company aims to hit 1GW in 2028, which implies the Overture funding plan is still on the table. The $300 million raise is mainly to bring the new business to market, and that funding is still in place.

Both companies are still active.

Scholl’s post notes that the future is long, and he looks forward to potentially teaming up if/when turbines become part of Crusoe’s primary power mix. That is a diplomatic way of saying the partnership is over for now, but the door is not closed.

Crusoe’s statement is equally diplomatic. The company wishes Boom well and says the partnership wasn’t the right fit today. Those are the words of companies that parted ways cleanly.

The split serves as a warning about the challenge of building a new product around a single customer. The partnership was always a wager on what was to come, and that wager came to an end Friday.

Where the paper stands

The paper backs Crusoe’s right to shut down a deal for any reason without penalty and is against Boom’s demand for a $1.25 billion contract to stay locked in past its own judgment. The deal’s end was Crusoe’s call, and Boom’s response was graceful; that is how partnerships should end.

The danger is big tech dominance, not the technology itself. The $1.25 billion contract would have locked Crusoe into a machine it no longer needed for its primary power in Abilene. Boom’s pipeline customers and its target of 1GW in 2028 show the business is moving forward without it.

Source material: “Crusoe abandons $1.25B plan to use Boom turbines at AI data centers,” TechCrunch.

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