Boom Supersonic raises $300M to build natural gas turbines for Crusoe data centers

Boom Supersonic, the ambitious aircraft manufacturer, has announced a groundbreaking venture into the power generation sector. The company revealed on Tuesday that it will market a version of its turbine engine as a stationary power plant, with data center startup Crusoe as its inaugural customer. Crusoe is set to invest $1.25 billion in 29 of Boom’s 42-megawatt turbines, which are expected to produce a substantial 1.21 gigawatts for its data facilities. Boom plans to unveil specifics regarding a new turbine factory in the upcoming year, aiming for the first deliveries by 2027. To facilitate this expansion, Boom has successfully raised $300 million in a funding round led by Darsana Capital Partners, alongside contributions from notable investors such as Altimeter Capital, Ark Invest, Bessemer Venture Partners, Robinhood Ventures, and Y Combinator. According to Boom's founder and CEO Blake Scholl, revenue generated from the sales of these Superpower turbines will support ongoing development of the company's Overture supersonic aircraft. He compared this strategic approach to SpaceX's Starlink satellite service, which has proven profitable and helped fund rocket development. Scholl elaborated on the significance of this pivot, stating, "I’ve been keeping my eyes open for 10 years for what could be our Starlink. This is the right opportunity to pursue, as it aligns perfectly with our vision." Notably, Boom’s Superpower and its aerial engine, Symphony, share an impressive 80% of their components. Earlier this year, Boom made headlines when its XB-1 demonstrator became the first civil aircraft developed by a private entity to exceed the sound barrier. For the $1,033 per kilowatt Crusoe is paying, Boom will supply the turbines, generators, and control systems, along with preventative maintenance. However, Crusoe will be responsible for additional infrastructure such as pollution controls and electrical connections. While this pricing appears higher than standard rates for similar power plants, it still falls within the competitive landscape of aeroderivative turbines, which typically cost around $1,600 per kilowatt, factoring in a range of necessary installations and permits. Boom’s Superpower aims for an efficiency rate of 39%, comparable to rivals in the industry. The company is also working on a “field upgrade” to enhance turbine efficiency by converting them from simple cycle to combined cycle. This upgrade could involve the installation of existing combined-cycle kits, although it may extend installation times. The Superpower turbines will be delivered in shipping containers, with developers like Crusoe managing the necessary electrical and gas connections. Scholl has assured that the noise levels will be comparable to existing turbine models, although reports from nearby residents suggest that similar-sized turbines can be heard from significant distances. The first units will be produced at Boom’s current facilities while preparations for a larger factory are underway. The ambitious production goals include generating 1 gigawatt by 2028, 2 gigawatts by 2029, and reaching 4 gigawatts by 2030. Achieving these targets would mark a considerable increase in the availability of these turbines for deployment. Despite these exciting prospects, Boom faces substantial challenges in the coming years. Successfully navigating this transition could pave the way for commercial supersonic flights sooner than anticipated. However, scaling production remains a formidable hurdle, as many startups have found it difficult to bridge the gap between early-stage innovation and commercial success.