Crusoe Energy Systems, the startup behind the Stargate data center, just pulled off a massive deal. The company announced an agreement to acquire gas turbines that will generate 4.5 gigawatts of power by 2027. That’s an unprecedented amount of energy, enough to power millions of Nvidia (NVDA) AI chips, according to Financial Times.
Light Up your Portfolio with Spark:
This move signals a shift for Crusoe. Originally focused on using excess gas from oilfields for Bitcoin mining, the company is now turning toward AI infrastructure. The goal? Build high-density data centers optimized for AI workloads, complete with advanced cooling systems designed to support Nvidia’s GPUs.
Crusoe’s Role in the Stargate AI Initiative
Crusoe isn’t just building any data centers—it’s directly involved in the ambitious Stargate project, an AI infrastructure initiative backed by OpenAI and SoftBank (OTC:SFTBY). According to Financial Times, Stargate plans to invest up to $500 billion over the next four years to expand AI computing power. Moreover, Crusoe has been tapped by Oracle to construct the first data center for this initiative.
Big Tech Backs Crusoe’s Expansion
Crusoe isn’t moving alone. Financial Times reported that the company secured up to $500 million in equity funding from investors, including Peter Thiel’s Founders Fund. On top of that, it locked in a $3.4 billion deal with Blue Owl Capital (OWL) to finance a Texas data center leased to Oracle, a major player in AI computing.
Energy Innovation Drives Crusoe’s Strategy
Instead of relying on traditional power grids, Crusoe is building on-site natural gas plants to power its data centers. Public filings show plans for a 360.5-megawatt gas plant in Texas, according to Business Insider. This setup ensures a steady energy supply, and thus solves one of the biggest headaches in AI infrastructure.
What Is the Best AI Stock to Buy?
For investors interested in investing in the artificial intelligence sector, we have rounded up the best stocks to buy in this sector, using the TipRanks Stocks Comparison tool.
Questions or Comments about the article? Write to editor@tipranks.com