What happened
Crusoe announced on Sept. 25, 2026 that it is pulling out of a $1.25 billion contract with Boom Supersonic for 29 Superpower 42‑MW natural‑gas turbines intended to power AI‑focused data centers. The deal, first disclosed by TechCrunch, would have supplied roughly 1.21 GW of capacity. Boom’s founder, Blake Scholl, confirmed the split, noting that the company will still aim to deliver about 250 MW of turbines to other sites in 2027 and target 1 GW by 2028. Crusoe clarified that it is not abandoning turbine power altogether; it remains flexible, sourcing electricity from a mix of turbines, wind, solar, batteries, and grid connections as individual sites evolve. The company continues to pursue other large‑scale power agreements, including GE Vernova’s 29 LM2500XPRESS turbines (≈1 GW) and a 750 MW deal with Bergen Engines.
On Sept. 25, 2026, Crusoe publicly announced the termination of its $1.25 billion agreement with Boom Supersonic for 29 Superpower turbines, a deal first reported by TechCrunch. The turbines, each rated at 42 MW, would have collectively supplied about 1.21 GW of power for AI‑intensive data centers.
Boom’s founder Blake Scholl confirmed the split, stating that the company will still aim to deliver roughly 250 MW of turbines to other sites next year and pursue a 1 GW target by 2028. The cancellation came months before the first deliveries, which were slated for 2027.
Crusoe emphasized that it remains open to turbine power but is adopting a flexible sourcing model that includes wind, solar, battery storage, and direct grid connections. The company continues to secure other large‑scale power deals, such as a 29‑unit order from GE Vernova and a 750 MW agreement with Bergen Engines.
Source details: techrepublic.com ↗
Why it matters
The cancellation underscores the volatility of power‑supply strategies for AI data‑center operators. A single $1.25 billion contract represents a sizable portion of the emerging AI‑infrastructure market, where megawatt‑scale power availability is a critical bottleneck. Crusoe’s shift away from Boom’s turbines signals that even well‑funded projects can be re‑engineered when grid approvals tighten—Texas regulators recently paused new data‑center interconnections amid a 474 GW queue. The move also highlights the diversification trend: operators are pairing generation with battery storage (e.g., SpaceX’s $329 million Tesla Megapack spend) to hedge against grid constraints and fuel‑price volatility. For investors and vendors, the split may reshape the competitive landscape for turbine manufacturers and renewable‑energy providers seeking AI‑centric contracts.
The AI data‑center sector is experiencing a power‑supply crunch, with the International Energy Agency projecting global data‑center electricity use to rise from 485 TWh in 2025 to 950 TWh by 2030. Large‑scale turbine contracts like the one with Boom are critical to meeting this demand.
Regulatory headwinds in Texas—where Crusoe’s Abilene campus is located—have led to a pause on new data‑center grid approvals, highlighting the risk that even billion‑dollar power plans may be delayed or restructured.
Crusoe’s diversification into batteries and renewable generation mirrors broader industry trends, as illustrated by SpaceX’s $329 million investment in Tesla Megapacks. This shift reduces reliance on a single fuel source and mitigates grid‑interconnection bottlenecks.
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What to watch next
Future power‑mix decisions at Crusoe and other AI data‑center developers will be closely watched, especially any new turbine agreements or renewable‑energy contracts. Regulatory developments in Texas and other key jurisdictions could either accelerate or further delay on‑site generation projects. Additionally, the performance of Boom’s remaining turbine —its ability to secure alternative customers and meet the 1 GW 2028 target—will indicate whether the market can absorb large‑scale turbine capacity without a marquee launch customer.
Whether Crusoe will announce new turbine or renewable‑energy contracts to replace the Boom capacity, and how those deals will be financed.
The outcome of Texas regulator reviews of data‑center interconnection requests, which could either open or further restrict on‑site generation options.
Boom Supersonic’s ability to secure alternative customers for its Superpower turbines and meet its 2028 1 GW delivery goal without Crusoe’s backing.