Crusoe abandons $1.25B plan to use Boom turbines at AI data centers

In a significant development for the AI infrastructure sector, Crusoe Energy Systems has announced it is abandoning a substantial $1.25 billion plan to integrate stationary power plants from Boom Supersonic into its AI data centers. This decision marks a notable shift in Crusoe's near-term energy strategy and has implications for both companies involved, as well as the broader landscape of powering the rapidly expanding AI industry.

The original agreement, unveiled in December 2025, positioned Crusoe as the launch customer for Boom's "Superpower" natural gas turbines. The ambitious partnership aimed to deploy 29 of these specialized turbines, designed to provide a massive 1.21 gigawatts (GW) of off-grid power capacity for Crusoe's high-performance AI compute facilities. However, less than a year later, Boom Supersonic CEO Blake Scholl confirmed that these stationary power plants are no longer part of Crusoe's immediate plans.

The Original Vision: Boom's Superpower and Crusoe's AI Ambitions

The collaboration between Crusoe Energy Systems, a leader in energy-first AI infrastructure, and Boom Supersonic, known for its work on the Overture supersonic passenger jet, was initially hailed as an innovative solution to the escalating energy demands of AI data centers. Crusoe, founded in 2018, has built a reputation for its unique approach to powering digital infrastructure, often by harnessing otherwise wasted or stranded energy sources, such as flare gas, and integrating diverse clean energy options.

Boom Supersonic's Superpower turbine was a key component of this strategy. The 42-megawatt natural gas turbine was developed to leverage much of the core technology from Boom's Symphony engine, which is being designed for its Overture aircraft. This meant that the Superpower turbines were not just about generating electricity; they were also a strategic move for Boom. The company anticipated that sales from its stationary power plant business would generate crucial revenue and provide valuable engine reliability data, both essential for advancing the development and certification of its Overture supersonic airliner.

The $1.25 billion order from Crusoe was intended to cover 29 Superpower turbines, providing 1.21 GW of rated capacity, with initial deliveries expected to commence in 2027. This deal represented a significant backlog for Boom's new power turbine division and promised to accelerate the deployment of large-scale AI infrastructure by providing dedicated, on-site power generation. Boom highlighted the turbines' ability to maintain full capacity even in demanding hot temperatures and their waterless operation, making them suitable for various environments.

Why the Change of Course? Crusoe's Evolving Energy Strategy

Crusoe Energy Systems confirmed the termination of the partnership, with a company representative, Andrew Schmitt, stating that Crusoe maintains flexibility in selecting energy sources for each of its sites. The decision to step back from the Boom deal, as reported, reflects Crusoe's pursuit of "alternative power generation strategies that better align with its development timelines and infrastructure requirements."

Crusoe operates on a core philosophy: that the two biggest bottlenecks to AI progress are energy and compute, and they must be addressed in tandem. This "energy-first" approach involves building AI data centers directly in regions with abundant, often underutilized, energy resources. Their portfolio of energy solutions is diverse, encompassing grid power, natural gas, solar, wind, battery storage, hydro, geothermal, and fuel cells. This adaptability allows Crusoe to deploy a customized energy mix for each campus, ensuring reliable and continuous power for demanding AI workloads.

The company emphasizes its vertically integrated model, managing the entire value chain from power generation to data center design and operation. This enables them to compress development timelines and bring gigawatt-scale AI factories to market rapidly. For instance, Crusoe has demonstrated its ability to energize new data center capacity in record time, citing the delivery of an on-site power plant and substation in Abilene, TX, in under six months.

While the Boom Supersonic deal is off the table, Crusoe has not abandoned gas turbines entirely as a power option. In fact, a recent announcement from June 2026 revealed a significant agreement with Bergen Engines. This partnership will see Bergen Engines supply 750 megawatts (MW) of power generation capacity for Crusoe's AI data center infrastructure across the United States. This includes an initial contract for approximately 438 MW and a 310 MW letter of intent, with natural gas gensets from Bergen providing continuous on-site baseload power, phased through 2027. This new deal underscores Crusoe's continued commitment to robust, on-site power solutions for its AI factories, albeit with a different partner and technology.

Impact on Boom Supersonic: A Setback for Overture Funding

For Boom Supersonic, the cancellation represents a significant setback. Crusoe was the announced launch customer for its Superpower turbines, and the $1.25 billion order was a cornerstone of Boom's strategy to diversify its revenue streams and fund its ambitious Overture project. The Superpower business was designed to be a bridge, providing both capital and technological synergy with the Symphony engines destined for the supersonic jet.

Boom Supersonic had raised $300 million in funding in December 2025, partly to commercialize its stationary power plant business. The expectation was that profits from Superpower sales would directly contribute to Overture's development. While Boom still projects delivering approximately 250 MW of turbines to other, unnamed customers in 2027 and aims for 1 GW in 2028, losing its anchor customer for such a large order undoubtedly creates a void in its immediate financial and operational plans for the Superpower division.

The company's mission is to make supersonic flight accessible again, and Overture is central to that vision. The Superpower project was meant to accelerate this, demonstrating the versatility of its engine technology. Boom will now need to either secure new significant customers for its Superpower turbines or find alternative funding mechanisms to maintain the pace of Overture's development.

Broader Implications for AI Data Center Power

The story of Crusoe and Boom Supersonic highlights the immense and evolving challenges of powering the AI revolution. Artificial intelligence workloads are incredibly power-intensive, with individual server racks requiring dramatically more electricity than traditional cloud data center racks from just a few years ago. This escalating demand is straining existing grid infrastructure and driving companies like Crusoe to adopt innovative, "energy-first" approaches.

The industry is witnessing a clear trend towards dedicated, on-site power generation for AI infrastructure. This approach reduces reliance on often-strained local grids, mitigates interconnection delays, and allows for greater control over power supply and costs. Companies are exploring a wide array of energy sources, from renewables like solar and wind to natural gas, battery storage, and even nuclear and geothermal.

Crusoe's flexible and diversified energy strategy, as evidenced by its shift from Boom's turbines to Bergen Engines' gensets, showcases the dynamic nature of this challenge. AI infrastructure providers must remain agile, continuously evaluating and integrating the most efficient, reliable, and timely power solutions to meet the insatiable demands of advanced AI models and applications. The goal is not just to find power, but to find abundant, cost-effective, and sustainable power that can scale at the rapid pace of AI innovation.

The Future of Sustainable AI Infrastructure

The cancellation of the Crusoe-Boom deal, while a significant piece of news, ultimately underscores the relentless pursuit of robust and sustainable power solutions within the AI sector. Crusoe's mission to accelerate the abundance of energy and intelligence remains unchanged. Companies in this space are not just building data centers; they are building "AI factories" that require a foundational layer of energy infrastructure that is both powerful and adaptable.

The continuous innovation in energy sourcing, management, and deployment will be critical for the sustained growth of AI. This includes exploring new technologies, optimizing existing ones, and integrating diverse energy portfolios to ensure that the computational demands of future AI breakthroughs can be met without compromising environmental goals or straining existing resources. The path to powering the future of AI is complex, filled with both partnerships and strategic realignments, all aimed at achieving an "energy-first" future for artificial intelligence.

Frequently Asked Questions

What was the original agreement between Crusoe and Boom Supersonic?

The original agreement, announced in December 2025, was a $1.25 billion plan for Crusoe Energy Systems to purchase 29 "Superpower" natural gas turbines from Boom Supersonic. These turbines were intended to provide 1.21 gigawatts of off-grid power for Crusoe's AI data centers, with first deliveries slated for 2027.

Why did Crusoe abandon the plan to use Boom's turbines?

Crusoe abandoned the plan because Boom's stationary power plants no longer aligned with Crusoe's near-term plans for primary power supply and its evolving alternative power generation strategies. Crusoe aims to find solutions that better fit its development timelines and infrastructure requirements.

How does this impact Boom Supersonic?

This decision means Boom Supersonic has lost its launch customer for the Superpower turbines. Boom had intended for sales from this business to help fund the development of its Overture supersonic passenger jet and provide engine reliability data.

What is Crusoe's current strategy for powering its AI data centers?

Crusoe continues to follow an "energy-first" approach, developing AI data centers with diverse energy sources including grid power, natural gas, solar, wind, battery storage, hydro, geothermal, and fuel cells. They recently signed an agreement with Bergen Engines to provide 750 MW of natural gas power generation capacity for their AI data centers.