Denver-based data center developer Crusoe has sold an unfinished project in southeastern Wyoming to Google, which had reportedly raised concerns about the project’s cost and construction timeline, the company confirmed Friday.
Crusoe had tried and failed to secure Google as a customer for the development before selling it. Google did not disclose how much it paid for the unfinished project, but announced plans to invest $17 billion to develop the data center campus.
Crusoe initially announced the Wyoming project last year alongside Blackstone-backed infrastructure company Tallgrass, planning to eventually scale it to 10 gigawatts of power capacity. The deal was first reported by Bloomberg in June.
The sale highlights the difficulty independent data center developers face in delivering massive projects on time and within budget, given challenges securing equipment and power. Growing opposition from local communities can further complicate development.
Despite the Wyoming setback, Crusoe and Google continue to work together. Crusoe is developing another data center for Google near Amarillo, Texas. The company also raised $3.9 billion in a September funding round, and its other large projects include campuses in Abilene and outside it for Oracle, OpenAI, and Microsoft, with Meta also a customer and Bloomberg reporting that trading firm Jane Street signed a cloud deal with Crusoe.
Crusoe, founded by CEO Chase Lochmiller and Cully Cavness, began as a cryptocurrency-mining business powered by natural gas that would otherwise have been burned off. It leases data center space, rents out its own GPUs, and sells compute power for running AI models, known as inference.
Analysis
Why This Matters
- The deal shows how major AI companies are increasingly opting to own rather than lease their largest data center projects, shifting the balance of power in the industry.
- Independent developers like Crusoe face mounting pressure to deliver on time and budget as AI demand drives a global buildout of massive facilities.
- The $17 billion investment underscores the huge capital costs behind the AI infrastructure race and the stakes for regional economies and local communities.
Background
Crusoe is an eight-year-old, Denver-based data center developer recently valued at $30.9 billion. It began as a cryptocurrency-mining business using natural gas that would otherwise be flared, then moved into building large-scale data centers for AI companies. Its projects serve some of the biggest names in AI, including Oracle, OpenAI and Microsoft, with a campus in Abilene, Texas, being built in phases.
Key Perspectives
Crusoe: Confirmed the sale Friday, without disclosing the price, and continues to work with Google on a separate project in Texas.
Google: Did not disclose its payment to Crusoe but said it will invest $17 billion to develop the Wyoming campus.
What to Watch
- Whether Google announces further details on the Wyoming campus timeline or capacity.
- How the ongoing Crusoe-Google Texas project progresses, as a test of the continuing relationship.
- Whether other large AI customers follow Google’s path of acquiring projects from independent developers rather than leasing space.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedCrusoe sold the unfinished Wyoming project to Google after failing to secure Google as a customer for it.AI News & Artificial Intelligence | TechCrunch: “Crusoe, which Crusoe had tried and failed to land as a customer for the project, is taking over the development”
- SupportedGoogle plans to invest $17 billion to develop the data center campus.AI News & Artificial Intelligence | TechCrunch: “Google did not disclose how much it paid Crusoe for the unfinished project, bu it announced plans to invest $17 billion to develop the data center campus.”
- SupportedCrusoe is developing a separate data center for Google near Amarillo, Texas.AI News & Artificial Intelligence | TechCrunch: “Crusoe is developing another data center for Google near Amarillo, Texas.”
- SupportedCrusoe, a Denver-based developer, sold Google an unfinished project in southeastern Wyoming and confirmed the sale Friday.AI News & Artificial Intelligence | TechCrunch: “Crusoe, an eight-year-old, Denver-based data center developer recently valued at $30.9 billion , confirmed Friday it has sold an unfinished data center project in southeastern Wyoming to Google.”
- SupportedGoogle had reportedly raised concerns about the project's cost and construction timeline under Crusoe's management.AI News & Artificial Intelligence | TechCrunch: “Google, which Crusoe had tried and failed to land as a customer for the project, is taking over the development after reportedly raising concerns about its cost and construction timeline under Crusoe’s management.”
- SupportedGoogle did not disclose what it paid Crusoe for the project.AI News & Artificial Intelligence | TechCrunch: “Google did not disclose how much it paid Crusoe for the unfinished project”
- SupportedCrusoe and Tallgrass initially announced the Wyoming project last year, with plans to eventually scale it to 10 gigawatts of power capacity.AI News & Artificial Intelligence | TechCrunch: “Crusoe initially announced the project last year with Blackstone-backed infrastructure company Tallgrass, planning to eventually scale it to 10 gigawatts of power capacity.”
- SupportedBloomberg first reported the sale in June.AI News & Artificial Intelligence | TechCrunch: “The deal to sell the site to Google was first reported by Bloomberg in June”
- SupportedThe deal highlights challenges for independent data center developers delivering large projects on time and within budget, including securing equipment and power.AI News & Artificial Intelligence | TechCrunch: “The deal highlights how difficult it can be for independent data center developers to deliver massive projects on time and within budget, given the challenges of securing equipment and power.”
- SupportedGrowing opposition from local communities can further complicate development.AI News & Artificial Intelligence | TechCrunch: “Growing opposition from local communities can further complicate development.”
- SupportedCrusoe raised $3.9 billion in a September funding round.AI News & Artificial Intelligence | TechCrunch: “the Wyoming setback didn’t stop Crusoe from raising a $3.9 billion round in September.”
- SupportedCrusoe was founded by Chase Lochmiller, now its CEO, and Cully Cavness, and began as a cryptocurrency-mining business powered by natural gas that otherwise would have been burned off.AI News & Artificial Intelligence | TechCrunch: “Crusoe was founded by Chase Lochmiller, now its CEO, and Cully Cavness, who started it as a cryptocurrency-mining business powered by natural gas that would otherwise have been burned off.”
