AI
Google buys Crusoe's unfinished Wyoming data center site
Google takes full ownership of the site after previously rejecting Crusoe's proposal to join as a tenant over cost and timeline concerns.
Google has acquired an unfinished data center project in southeastern Wyoming from Crusoe, taking direct ownership of a site where it previously declined to become a anchor tenant.
Crusoe, the Denver-based artificial intelligence infrastructure developer, confirmed the sale on Friday. The announcement came one day after Google made public a $17 billion commitment to build its initial data center campus in Wyoming. Neither company disclosed the financial terms of the transaction.
According to Crusoe, the transaction concludes its pre-development role on the campus. That initial phase covered site selection, securing local and state government approvals, and laying out the site's power strategy. Google will now take over the construction of the facility alongside Tallgrass Energy, Black Hills Energy, American Electric Power and Related Digital.
Project background and original plans
Crusoe originally introduced the Wyoming project last year in partnership with Tallgrass Energy, an energy infrastructure firm backed by Blackstone. The original design aimed to scale the facility to a total power capacity of 10 gigawatts.
Crusoe initially attempted to bring Google on board as a customer for the facility. Google turned down the proposal, raising concerns regarding construction timelines and projected costs under Crusoe's management. Media reports that Crusoe was seeking a buyer for the site first emerged in June.
Crusoe's executive leadership described the outcome differently. Chase Lochmiller, chief executive and co-founder of Crusoe, said the company's preliminary work in origination, entitlement and de-risking successfully positioned the site for active construction and operational launch. Lochmiller added that Crusoe currently maintains more than 6 gigawatts of contracted capacity and holds a pipeline exceeding 40 gigawatts.
The energy blueprint designed by Crusoe and Tallgrass represents one of the site's distinct technical features. The infrastructure combines power grid connections, natural gas turbines and fuel cells. The partners planned to incorporate long-term carbon capture by connecting to Tallgrass's regional carbon dioxide sequestration hub.
Crusoe's active projects and customer pipeline
| Location | Lead partners & customers | Power capacity & design | Status / Timeline |
|---|---|---|---|
| Southeastern Wyoming | Google, Tallgrass Energy, Black Hills Energy, AEP, Related Digital | Up to 10 GW; fuel cells, gas turbines, carbon capture | Pre-development sold to Google |
| Armstrong County, Texas | Two 265.5 MW wind farms (531 MW total); closed-loop cooling | In development | |
| Abilene, Texas | Oracle, OpenAI | Not disclosed | Construction in phases |
| Abilene (adjacent site), Texas | Microsoft | 900 MW | First building online mid-2027 |
The sale of the Wyoming site does not end Crusoe's working relationship with Google. In September, Crusoe confirmed it is developing a separate data center campus for Google in Armstrong County, near Amarillo, Texas. That facility connects directly to two adjacent 265.5-megawatt wind farms—one currently operational and one under construction. The Amarillo facility relies on closed-loop liquid cooling technology, restricting water consumption primarily to domestic and kitchen uses.
Beyond Google, Crusoe holds major commitments across the technology sector:
- In Abilene, Texas, Crusoe is constructing a campus in phases to host capacity for Oracle and OpenAI.
- Directly adjacent to the Abilene site, Crusoe is building a separate 900-megawatt campus for Microsoft, where the initial building is scheduled to go online in mid-2027.
- Meta uses Crusoe's data center infrastructure.
- Quantitative trading firm Jane Street reportedly signed a five-year cloud infrastructure agreement with Crusoe valued at $13 billion.
Valuations and execution challenges
The divestment in Wyoming did not hinder Crusoe's private market fundraising. Crusoe secured $3.9 billion in capital in September, reaching a valuation of $30.9 billion. The company was founded eight years ago, initially operating crypto-mining infrastructure powered by natural gas flared at oil fields.
The transfer of the Wyoming development highlights the execution hurdles independent infrastructure firms face when building gigawatt-scale data centers. Developers across the sector encounter severe supply chain delays for heavy electrical equipment, grid access bottlenecks and local permitting friction. By acquiring the site directly, Google assumes direct control over the project's construction budget and completion schedule.
Why it matters
For founders and operators in AI infrastructure, the deal illustrates a structural shift toward hyperscaler balance sheets taking direct control of gigawatt-scale power sites. While independent developers can effectively de-risk sites and secure early entitlements, the capital intensity and execution risks of multi-gigawatt builds are pushing tech giants to buy out early-stage projects rather than simply rent capacity.