Google Acquires Troubled Wyoming Data Center Project from Crusoe

Crusoe, an eight-year-old data center developer based in Denver, has confirmed that it is selling one of its troubled projects to Google. The unfinished data center facility is located in southeastern Wyoming and had been plagued by concerns over cost and construction timeline.

The project was initially announced last year with the backing of Tallgrass, a Blackstone-backed infrastructure company, which aimed to scale the facility to 10 gigawatts of power capacity. However, despite this ambitious plan, Crusoe's management faced difficulties in delivering the project on time and within budget.

Crusoe had previously tried to secure Google as a customer for the Wyoming data center but ultimately failed to do so. In contrast, Google will now be taking over the development of the facility after reportedly raising concerns about its cost and construction timeline under Crusoe's management.

Google has announced plans to invest $17 billion in developing the data center campus, although it did not disclose how much it paid for the unfinished project from Crusoe.

Crusoe's data center business model is centered around leasing space to customers who bring their own graphics processing units (GPUs). The company also generates revenue by renting out its own GPUs and selling compute power used for artificial intelligence (AI) models, known as inference.

The company has secured major deals with some of the biggest players in the AI industry. Its Abilene, Texas campus is being built in phases for Oracle and OpenAI, while a separate 900-megawatt campus next door is being constructed for Microsoft. The first building at this site is expected to come online in mid-2027.

Meta is another customer of Crusoe's data center services, and the trading firm Jane Street has signed a significant cloud deal with the company, reportedly worth $13 billion over five years. This deal was highlighted by Bloomberg earlier this year.

Crusoe's origins date back to its founding as a cryptocurrency-mining business powered by natural gas that would otherwise have been burned off. The company's CEO, Chase Lochmiller, co-founded it alongside Cully Cavness in an initiative that has since evolved into the data center services provider we know today.

The troubled Wyoming data center project has been sold to Google, marking a significant shift in the company's operations. Crusoe, the data center services provider, had been struggling to complete its ambitious project, which was meant to be one of the largest and most advanced in the region.

The acquisition by Google brings an end to Crusoe's efforts to develop the facility, which had faced numerous delays and setbacks over the years. While details of the deal remain scarce, it is clear that Google sees value in acquiring the assets and expertise of Crusoe.

As a result of this sale, Crusoe will be focusing on its core business of providing data center services to clients, rather than investing in large-scale infrastructure projects. This strategic pivot should allow the company to maintain its competitiveness in the market while minimizing financial risks associated with complex development projects.

The acquisition underscores Google's continued expansion into the realm of data centers and cloud computing, solidifying its position as a major player in the industry.