Report: Concerns from Google led to Crusoe's forced withdrawal, but the Wyoming AI data center project has not been terminated
AI data center startup Crusoe previously announced it would "pause" its Wyoming data center plan, but the truth is the company is being forced to exit due to failing to secure clients including Google. Meanwhile, the project itself will continue under a new partnership framework.
According to Bloomberg citing sources, Google expressed doubts about the project's costs and timeline under Crusoe's leadership—this was the direct trigger for Crusoe's pressured exit.
On Wednesday, utility company Black Hills said it would continue developing the data center without Crusoe's involvement.
With Crusoe out, Google is finalizing agreements with the remaining partners to purchase computing resources from the project, and negotiations are in their final stage.
Bloom Energy, which is tied to the project’s supply chain, saw its stock rise over 6% on Thursday, closing at $248.88.
Crusoe sidelined, but negotiations continue
Crusoe previously announced it would "pause" the Wyoming data center plan, but sources say it is actually under pressure and is being forced to exit. The data center’s planned electricity usage would be enough to supply a city the size of Denver.
However, according to someone familiar with Crusoe’s business, Crusoe’s complete exit hasn’t been fully decided yet.
It’s more likely other companies will acquire Crusoe’s stake in the project, but Crusoe is still negotiating for the right to participate, with the latest contact with potential clients happening this Monday. The source said Crusoe submitted a budget proposal with the price falling within the range acceptable to potential clients.
Crusoe’s spokesperson stated the company had not signed formal agreements with potential clients for the Wyoming project, but had entered exclusive negotiations. The developer had completed some preliminary site work and obtained local approvals, with the rights held by a Crusoe subsidiary, which has now stopped onsite operations.
Project itself unaffected, expected to launch in early 2028
Despite the change in partners, the progress of the Wyoming data center project has not been interrupted. Black Hills made it clear in its Wednesday statement that the project is "not paused," and the company is working directly with potential clients to advance the project, which is expected to be operational in early 2028.
The project was originally announced by Crusoe in July 2025 in partnership with Tallgrass, an infrastructure company owned by Blackstone Group. Crusoe’s CEO Chase Lochmiller stated at the time the campus could eventually be expanded to 10 gigawatts.
Before Google engaged with Crusoe regarding the Wyoming project, Crusoe had tried to probe Oracle's interest in cooperation, but sources say the deal didn't go through. Oracle was skeptical about the power supply plan and had expressed reluctance to work with Crusoe on data centers beyond the Stargate initial site.
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