Crusoe Energy walks away from a planned $1.25 billion power generation deal with Boom Turbine amid intensifying AI power race competition.

Boom Supersonic has lost the launch customer for its data-center turbine business. Crusoe has ended a reported $1.25 billion agreement for 29 Boom Superpower natural-gas turbines intended for AI data centers, according to TechCrunch.

Crusoe is dropping Boom, not abandoning turbines altogether. The company said it remains flexible about power sourcing, choosing among turbines, wind, solar, batteries, and grid electricity as individual sites evolve. The breakup removes Boom from Crusoe's near-term primary power mix while other large generation deals continue.

Boom loses its launch turbine customer. Scholl announced the split on September 25, months before deliveries were expected to begin in 2027. He said Boom expects about 250 MW of Superpower deliveries to other sites next year and is targeting 1 GW in 2028, though those figures remain company projections. Boom launched Superpower in December 2025 with Crusoe as its first customer, describing the order as 29 42-MW turbines totaling 1.21 GW. The company also raised $300 million, saying the financing funded development of its Symphony engine while future Superpower revenue could help support certification and delivery of its Overture airliner.

Crusoe's Abilene projects already use different power models. Its original campus has a 1.2-GW grid interconnection and natural-gas backup generation, while a separate 900-MW Microsoft campus is being developed with dedicated on-site generation and battery storage. Grid access itself is becoming harder to treat as a given. Texas paused new data-center grid approvals in August while regulators reviewed projects in an interconnection queue exceeding 474 GW of requested power.

Crusoe also has separate turbine agreements. GE Vernova is supplying 29 LM2500XPRESS turbines, expected to provide nearly 1 GW combined, while a June agreement with Bergen Engines covers about 750 MW through a 438-MW contract and 310-MW letter of intent.

Battery storage is becoming part of the same infrastructure race. SpaceX spent $329 million on Tesla Megapacks in the first half of 2026 as its AI data-center spending climbed, illustrating how developers are combining generation, storage, and grid access rather than relying on a single power source.

The International Energy Agency's April 2026 update projects global data-center electricity use rising from 485 TWh in 2025 to 950 TWh in 2030. It also says bottlenecks in grids, energy equipment, and chip manufacturing are limiting the fastest near-term expansion scenarios. For companies buying future AI capacity, contracts do not automatically equal deployable megawatts. Financing, construction, equipment delivery, and power availability are already shaping Oracle's AI data-center delivery timelines, while Crusoe's breakup with Boom shows that even billion-dollar power plans can change before equipment arrives.