Crusoe lands $1.3B to scale AI data centers, eyes 45GW development pipeline
Updated 19:36 EDT / October 23, 2025
Crusoe Energy Systems has reportedly raised $1.3 billion at roughly a $10 billion valuation to buy advanced hardware and accelerate the buildout of large AI data centers. The financing hasn't been formally announced by the company, but was reported by the Financial Times. The Series E was led by Mubadala Capital and Valor Equity Partners.
The deal at a glance
- Raise: $1.3B Series E on ~ $10B valuation
- Leads: Mubadala Capital, Valor Equity Partners LP
- Use of proceeds: Acquire advanced hardware and speed facility buildouts
- Pipeline: 45 gigawatts under development - roughly the power draw of 8-10 New York Cities
- Active builds: 1.2GW campus for OpenAI in Abilene, Texas (about $12B, target mid-2026) and a 1.8GW campus in Wyoming for an unnamed tech client
Crusoe started in 2018 with a simple wedge: capture natural gas that would otherwise be flared and turn it into compute. It first pointed that energy at bitcoin mining, then shifted toward AI and high performance computing as demand exploded.
Today the company calls itself a vertically integrated "neocloud" operator. It controls both sides: the energy capture and the compute delivery. That means it can source low-cost power, stand up purpose-built facilities, and lease GPU clusters directly to enterprises.
Why it matters
- Compute demand is breaking records. "We are seeing tremendous and accelerating demand for compute infrastructure," the CEO said, noting it's not limited to any single player.
- Energy + compute, under one roof. Owning the fuel source and the data centers tightens unit economics and helps with speed to capacity.
- Carbon and cost outcomes. Capturing methane/natural gas reduces waste and can help oil producers avoid flaring penalties while Crusoe monetizes compute and mitigation. For context, see the World Bank's work on gas flaring reduction.
How Crusoe makes money
- Contracts with oil and gas producers to capture gas and mitigate flaring
- Leases GPU clusters and AI infrastructure to tech and enterprise clients
- Operates purpose-built data centers and cloud services as a unified stack
Signals for finance teams
- Scale: Multi-gigawatt campuses imply heavy capex but long-duration lease potential
- Counterparty quality: Named and unnamed hyperscale/AI buyers matter for underwriting
- Regulatory and energy exposure: Flaring rules, gas pricing, and grid interconnect timelines can move schedules and returns
Signals for IT and developers
- GPU access: Additional capacity could ease allocation constraints for large training runs
- Location: Texas and Wyoming builds may influence latency, compliance, and data residency choices
- Sustainability reporting: Gas-to-compute may help scorecards; validate methodology and disclosures
What to watch next
- Company confirmation of the round and details on hardware mix and delivery timing
- Construction milestones on Abilene (mid-2026 target) and the Wyoming site
- Interconnects, permitting, and any updates on the 45GW development pipeline
Crusoe's last raise before this was $600 million on a $2.8 billion valuation in December. The trajectory is clear: bigger sites, bigger checks, and a tighter link between stranded energy and compute supply.
Building internal skills to make use of emerging AI infrastructure? See AI courses sorted by leading AI companies.
Your membership also unlocks:
