Google Takes Over $30.9 Billion AI Startup's Unfinished Data Centre Project

Google has taken over an unfinished data centre project in southeastern Wyoming from AI infrastructure company Crusoe, marking an interesting turn in a partnership that did not initially go as planned. The acquisition comes just a day after Google announced a $17 billion investment to establish its first data centre campus in Wyoming.

Crusoe, a Denver-based company specialising in AI infrastructure, confirmed the sale on Friday. However, neither company has revealed the financial details of the transaction. With the deal, Crusoe's involvement in the project's early development comes to an end. Its responsibilities included identifying the location, securing government approvals and developing the power strategy for the proposed campus.

Google will now take charge of construction alongside Tallgrass Energy, Black Hills Energy, American Electric Power and Related Digital.

Why did Google take over Crusoe's Wyoming project?

The Wyoming data centre campus was initially announced last year by Crusoe and Tallgrass, an energy infrastructure company backed by Blackstone. The ambitious proposal aimed to eventually expand the facility to 10 gigawatts of power capacity.

However, the project encountered difficulties when Crusoe approached Google to become a customer. Reports suggested that Google had concerns about the estimated costs and construction schedule under Crusoe's management. Speculation about a possible sale first emerged in June.

Crusoe, however, believes its contribution has helped prepare the project for the next stage. CEO and co-founder Chase Lochmiller said the company's work on origination, entitlement and de-risking had positioned the development for construction and eventual operations.

Lochmiller also highlighted the company's growing business, revealing that Crusoe now has more than 6 GW of contracted capacity and over 40 GW in its pipeline.

Another notable aspect of the Wyoming project is its proposed energy infrastructure. The plan combines fuel cells, electricity from the grid and natural gas turbines. It also includes a longer-term carbon capture strategy through Tallgrass's regional CO2 sequestration hub.

Crusoe continues its work with Google and other tech giants

Despite stepping away from the Wyoming development, Crusoe's relationship with Google remains intact. In September, the company confirmed that it was developing Google's data centre campus in Armstrong County, near Amarillo, Texas.

The facility is designed to connect with two neighbouring wind farms, each having a capacity of 265.5 MW. One is already operational, while the other is under construction. The campus will also use closed-loop liquid cooling technology to minimise water consumption.

Crusoe's business expansion has continued alongside these developments. The company raised $3.9 billion in September and recently reached a valuation of $30.9 billion. Interestingly, its journey began eight years ago as a cryptocurrency mining business that used natural gas otherwise destined to be wasted.

The company is also developing its Abilene campus in Texas for Oracle and OpenAI. A separate 900 MW facility nearby, planned for Microsoft, is expected to bring its first building online in mid-2027. Meta is another customer, while trading firm Jane Street has reportedly signed a $13 billion, five-year cloud agreement with Crusoe.

Google's takeover of the Wyoming project highlights the growing challenges of developing massive AI data centres. Equipment shortages, electricity availability, construction expenses and local opposition are making these projects increasingly complicated. By acquiring the site, Google has chosen to take direct responsibility for managing both the investment and construction timeline.

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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