Denver-based AI data center operator Crusoe has discontinued its $1.25 billion agreement to deploy Boom Supersonic’s new stationary gas turbines at its AI data centers. Originally, Crusoe planned to purchase 29 of Boom’s 42-megawatt Superpower turbines, which are derived from the same engine technology used in Boom’s supersonic passenger jet project Overture. Deliveries were expected to start in 2027, marking Crusoe as Boom’s launch customer for this new line of power plants.

Boom Supersonic CEO Blake Scholl confirmed the deal’s collapse on social media, noting that turbines will no longer be a part of Crusoe’s immediate energy strategy, although Boom still has other customers in the pipeline. Scholl expressed gratitude for Crusoe’s early involvement in refining the Superpower turbines and hopes for future collaborations when turbines align better with Crusoe’s energy plans. Meanwhile, Crusoe’s spokesperson maintained that their overall energy approach remains flexible, incorporating various solutions such as turbines (not from Boom), wind, solar, batteries, and grid power depending on each site’s requirements.

Crusoe began as a bitcoin miner utilizing excess natural gas and has evolved into a major AI data center developer, including a prominent facility in Abilene, Texas, that supports OpenAI. While their existing 1.2 gigawatt data center in Abilene currently runs primarily on grid power with gas turbines as backup, they are also developing another 900 megawatt facility for Microsoft that will employ onsite gas turbines. The decision to forego Boom’s turbines reflects Crusoe’s intent to maintain energy sourcing flexibility as its portfolio grows.

For Boom Supersonic, losing Crusoe as the launch customer is a significant setback for its stationary turbine business, which was launched last year to commercialize the gas turbine engine technology and help finance the Overture supersonic jet project. The company recently raised $300 million to support this new venture. Despite this, Boom plans to deliver around 250 megawatts of Superpower turbines to other customers in 2027 and aims to reach 1 gigawatt of capacity by 2028.