Crusoe sells troubled Wyoming data center project to Google

Summary

• Crusoe, an eight-year-old Denver-based data center developer valued at $30.9 billion, sold an unfinished data center project in southeastern Wyoming to Google.
• Google assumed development of the Wyoming site after reportedly raising concerns regarding cost & construction timeline under Crusoe's management.
• Crusoe initially announced the project last year with Blackstone-backed company Tallgrass, planning to scale it to 10 gigawatts of power capacity.
• Google did not disclose the purchase price but announced plans to invest $17 billion to develop the data center campus.
• The deal illustrates challenges independent developers face in delivering massive projects on time & within budget due to equipment, power, & local community opposition.
• Google continues to work with Crusoe on a separate data center project near Amarillo, Texas.
• Crusoe raised a $3.9 billion funding round in September despite the Wyoming setback.
• Crusoe generates revenue by leasing data center space, renting its own GPUs, & selling compute power for AI inference.
• Crusoe's largest projects serve Oracle, OpenAI, Microsoft, Meta, & trading firm Jane Street, which signed a $13 billion, five-year cloud deal.
• The company was founded by CEO Chase Lochmiller & Cully Cavness as a cryptocurrency-mining business powered by natural gas.
• Crusoe added three board members in September, including JB Straubel, who invested in the company in 2021 & later became Crusoe's first customer.