Report: Wyoming AI Data Center Project Not Terminated as Google Concerns Force Crusoe to Withdraw

AI data center startup Crusoe previously announced a "suspension" of its Wyoming data center plan, but the reality is that the company is being forced to withdraw due to its failure to secure customers, including Google. Meanwhile, the project itself will continue under a new cooperation framework.

According to Bloomberg, citing sources familiar with the matter, Google had expressed concerns about the project's costs and timeline under Crusoe's leadership, which was the direct trigger for the pressure on Crusoe to exit.

Electric utility company Black Hills stated on Wednesday that it would proceed with the data center development without Crusoe's involvement.

With Crusoe out of the picture, Google is finalizing agreements with the remaining partners to purchase computing power resources from the project, and negotiations are in their final stages.

Shares of Bloom Energy, which has supply chain links to the project, rose more than 6% on Thursday, closing at $248.88.

Crusoe Marginalized, but Negotiations Continue

Crusoe previously announced a "suspension" of its Wyoming data center plan, but sources say the reality is that the company is under pressure to leave. The data center is planned to consume enough electricity to supply a city the size of Denver.

However, according to a source familiar with Crusoe's business, the outcome of Crusoe completely exiting has not been finalized.

It is more likely that other companies will acquire Crusoe's equity stake in the project, but Crusoe is still negotiating to retain its participation, with its most recent contact with potential customers occurring this Monday. The source stated that Crusoe submitted a budget proposal with a quote falling within the acceptable range for potential customers.

A Crusoe spokesperson stated that the company has not signed formal agreements with potential customers for the Wyoming project but has entered into exclusive negotiation stages. The developer has completed some preliminary site preparation work and obtained local approvals. The relevant interests are held by a subsidiary of Crusoe, and on-site operations have currently ceased.

Project Itself Unaffected, Expected to Come Online in Early 2028

Despite the change in partners, the pace of the Wyoming data center project has not been interrupted. In a statement released on Wednesday, Black Hills explicitly stated that the project is "not suspended" and that the company is working directly with potential customers to advance it. The data center is expected to come online in early 2028.

The project was initially announced in July 2025 by Crusoe in partnership with Tallgrass, an infrastructure company under Blackstone Group. At the time, Crusoe CEO Chase Lochmiller stated that the campus could eventually scale up to 10 gigawatts.

Before Google engaged with Crusoe regarding the Wyoming project, Crusoe had first explored cooperation intentions with Oracle. However, according to sources, the deal ultimately failed to materialize. Oracle was skeptical about the project's power supply solution and expressed reluctance to cooperate with Crusoe on data centers outside the initial Stargate sites.