Crusoe has secured 4.5GW of natural gas to power AI data centers that could go to customers such as Stargate.
The AI data center developer has entered into a joint venture with San Francisco investment firm Engine No. 1 which will see it gain access to power generated by seven turbines built by GE Vernova, which were purchased by Engine No. 1 and Chevron earlier this year. The turbines will produce up to 4.5GW, and the JV is getting access to their entire output.
The turbines will circumvent the grid and deliver power directly to "large scale data center campuses" which Crusoe will build at as yet undetermined locations across US. The energy supply is likely to be in place by 2027.
Chase Lochmiller, CEO and co-founder of Crusoe, said: “Our accelerated development of AI data centers at scale will drive our country's economic growth, fuel advancements across every industry, and generate of thousands of high-quality manufacturing and construction jobs.”
Engine No. 1 and Chevron announced the purchase of the GE Vernova natural gas turbines in January, with the companies stating they intended use them to build power plants co-located with data centers across the US. At the time they said the turbines would produce up to 4GW, though this figure now appears to have risen.
Natural gas is seen by many as a cleaner alternative to fossil fuels, and is enjoying a boom in the US as data center operators race to get their hands on the energy they need to power servers. Since taking office, President Donald Trump’s government has expressed enthusiasm for backing more natural gas projects. However, it remains considerably more polluting than renewable energy sources.
Chris James, founder and chief investment officer of Engine No. 1, said: “This strategic partnership leverages Crusoe’s strength in developing purpose-built data centers with Engine No. 1’s focus on providing power to sites that support the AI-led industrialization of the US. Speed-to-market is the most critical aspect of powering AI development in the United States, and the combined expertise of our two firms ensures that we’ll be able to deliver that for customers.”
The Crusoe JV will attempt to sell the data center capacity created by the turbines to hyperscale providers, many of which are said to be looking for multi-gigawatt sites. The company is already providing infrastructure for Stargate, a JV between OpenAI, Oracle, SoftBank, and investment firm MGX that will apparently see up to $500 billion into AI infrastructure over the next four years. According to the companies, of the total investment, $100 billion will be deployed 'immediately,' although the reality remains murky.
The first stage of Stargate is being hosted at a Crusoe-built facility in Abilene, Texas. DCD reported in January that the site would be served by gas turbines providing 360MW, some of which will be sourced from GE Vernova.
In an interview with The Information, Lochmiller declined to say whether any of 4.5GW would be directed to Stargate, but Crusoe is said to be in discussions with multiple hyperscalers about where the capacity could be deployed.
The sheer volume of power that the deal gives Crusoe makes it a very attractive partner for any of the hyperscalers looking to increase capacity fast - by comparison, last year Microsoft had 5GW at its disposal for its entire data center estate.
Crusoe launched in 2018 as a cryptomining business that deployed containerized data centers to oil wells to harness natural gas that would otherwise be "flared off" and wasted. However, like many crypto data center companies, it has successfully pivoted to AI, and in December raised $600 million in a funding round that valued the business at $2.8 billion.
