Crusoe, an eight-year-old data center developer based in Denver and recently valued at $30.9 billion, confirmed Friday that it has handed over an unfinished data center project in southeastern Wyoming to Google.
Transition of the Wyoming Project
Google, which Crusoe had previously attempted to secure as a client for this specific site without success, is stepping in to take over development after raising concerns regarding construction timelines and overall expenses under Crusoe's oversight. The initiative was originally unveiled last year alongside the Blackstone-backed infrastructure firm Tallgrass, with long-term ambitions to scale power capacity up to 10 gigawatts. While financial specifics regarding the acquisition cost were not disclosed, Google announced an ambitious $17 billion investment plan to build out the entire campus.
Broader Challenges in Data Center Development
This transaction underscores the immense hurdles independent infrastructure developers face in delivering massive facilities on schedule and within financial boundaries amid severe power and equipment constraints. Furthermore, mounting resistance from local residents often adds layers of operational friction. Despite relinquishing the Wyoming site, Crusoe maintains active partnerships with Google, including the construction of another data center facility situated near Amarillo, Texas.
Financial Resilience and Funding Rounds
The takeover was initially brought to light by Bloomberg in June, though the setback in Wyoming failed to impede Crusoe's financial momentum as it secured a $3.9 billion funding round in September. The company generates revenue by renting out data center space to clients providing their own GPUs, leasing proprietary hardware, and offering inference compute power dedicated to running artificial intelligence workloads.
Major Enterprise Partnerships
Crusoe's primary facilities cater to prominent players across the artificial intelligence landscape. Its Abilene, Texas campus is expanding in phases to accommodate Oracle and OpenAI, while a separate 900-megawatt installation is underway for Microsoft next door, targeting an operational launch by mid-2027. Meta also utilizes its services, and trading firm Jane Street reportedly locked in a $13 billion five-year cloud agreement with Crusoe.
Company Origins and Leadership
The enterprise was launched by Chase Lochmiller, who serves as CEO, alongside Cully Cavness, initially operating as a flare gas-powered cryptocurrency mining venture. Alongside its September funding milestone, the firm appointed three board members, including Tesla board member and Redwood Materials founder JB Straubel, who previously invested in Crusoe in 2021 and established the company as an early customer for his energy storage systems.
