What changed
Crusoe, an eight-year-old data center developer valued at $30.9 billion, confirmed it has sold an unfinished data center project in southeastern Wyoming to Google. The deal comes after Google reportedly raised concerns about the project's cost and construction timeline under Crusoe’s management. Google plans to invest $17 billion to develop the data center campus, though the exact amount paid to Crusoe for the unfinished project was not disclosed.
What this means in practice
The sale underscores the difficulties independent data center developers face in delivering massive projects on time and within budget, particularly due to challenges in securing equipment and power. Growing opposition from local communities can further complicate development. Despite taking over the Wyoming facility, Google has not walked away from its collaboration with Crusoe, as the company is also developing another data center for Google near Amarillo, Texas.
Limitations and availability
Crusoe makes money by leasing data center space to customers that bring their own GPUs, renting out its own GPUs, and selling compute power used to run AI models. The company’s largest projects serve major AI players, including Oracle, OpenAI, Microsoft, and Meta. The Wyoming setback did not stop Crusoe from raising a $3.9 billion round in September. The supplied announcement does not specify the exact terms of the deal or the timeline for Google’s development of the Wyoming site.
