crusoe energy systems llc

overview

Crusoe Energy Systems is a pioneering data center operator that specializes in building energy-optimized AI infrastructure powered by stranded and wasted energy resources. Founded in 2018, the company initially developed a patented Digital Flare Mitigation (DFM) technology that captures flared natural gas from oil fields to power modular data centers. The company has since evolved from bitcoin mining operations to become a major AI infrastructure provider, operating the flagship Stargate Abilene site and offering Crusoe Cloud GPU computing services. Crusoe’s mission is to align the future of computing with the future of the climate.

business model

Crusoe operates on a vertically-integrated model that encompasses: (1) Energy procurement and generation using stranded, flared, or renewable energy sources at significantly lower costs than traditional providers; (2) Data center development, design, construction and operation with focus on AI-optimized facilities featuring liquid cooling and high-density GPU deployments; (3) Cloud computing services through Crusoe Cloud offering NVIDIA and AMD GPUs for AI training and inference workloads; (4) Behind-the-meter power generation including on-site natural gas turbines and renewable energy integration. The company serves both hyperscale customers through long-term lease agreements and cloud computing customers through its managed GPU cloud platform.

data center profile

global footprint

us portfolio (from database)

projects by state

specialization

primary focus: ai-ml, hyperscale, wholesale

key differentiators:

• Energy-optimized data center model using stranded/flared natural gas

• Pioneered Digital Flare Mitigation (DFM) technology

• Behind-the-meter power generation avoiding grid constraints

• Rapid deployment capability (300-day construction for Phase 1)

• Zero-water evaporation closed-loop cooling systems

financial highlights

strategy

corporate strategy

Crusoe’s corporate strategy centers on building the ‘AI factories of the future’ through a vertically-integrated energy-first approach. After successfully pioneering Digital Flare Mitigation technology for bitcoin mining (2018-2024), the company executed a strategic pivot to AI infrastructure in 2024-2025, selling its bitcoin mining operations to NYDIG to focus exclusively on AI data centers and cloud computing. The company’s core innovation is utilizing stranded, wasted, or underutilized energy sources—initially flared natural gas from oil fields, now expanding to include grid-connected renewable energy with behind-the-meter generation. This energy-optimized model allows Crusoe to offer computing at 30-50% lower energy costs while reducing environmental impact. The company positions itself as solving the fundamental constraint facing AI scaling: access to reliable, affordable, and sustainable power at the scale required for massive GPU clusters.

growth strategy

Crusoe is pursuing aggressive growth through three vectors: (1) Stargate partnership expansion - operating the flagship 1.2 GW Abilene site with potential for additional Stargate sites; (2) Crusoe Cloud platform scaling - expanding GPU cloud offerings with latest NVIDIA and AMD processors to serve broader AI developer market; (3) Powered data center joint ventures - secured 4.5 GW of natural gas power capacity through Engine No. 1 partnership to develop additional large-scale AI campuses. The company raised $600M Series D (December 2024) at$2.8B valuation to fund this expansion. Growth is enabled by strategic joint ventures with Blue Owl Capital and Primary Digital Infrastructure ($3.4B initial,$15B expanded) and long-term lease agreements with Fortune 100 hyperscalers. Crusoe targets revenue of approximately $1B in 2025, representing dramatic growth from its bitcoin mining origins.

power strategy

All-of-the-above energy strategy utilizing stranded natural gas, renewable energy, and future nuclear power. Primary innovation is behind-the-meter generation that bypasses grid interconnection queues and utility capacity constraints. Current focus on natural gas turbines (360 MW at Abilene) with advanced emissions controls (SCR technology achieving 90% lower emissions vs traditional engines). Expanding to 4.5 GW natural gas capacity via Engine No. 1 joint venture using seven GE Vernova turbines. Integration of renewable energy through grid connections (West Texas wind/solar via ERCOT providing 60%+ renewable power) and on-site solar installations. Battery energy storage systems (BESS) to capture excess renewable generation. Long-term strategy includes carbon capture utilization and storage (CCUS) for natural gas facilities and transition to small modular reactors (SMRs) when commercially available post-2030.

renewable commitment: Crusoe is committed to climate-aligned computing with target of net emissions reduction. Abilene site draws 60%+ renewable energy from ERCOT grid (West Texas wind and solar resources). On-site solar installations planned. Company mission explicitly states ‘align the future of computing with the future of the climate.’ Digital Flare Mitigation business (now divested) prevented 2.7 million metric tons of greenhouse gas emissions and nearly 22 billion cubic feet of natural gas from being flared over seven years. For every ton of CO2 equivalent produced, the DFM technology reduced over 1.6 tons through avoided methane emissions. Natural gas turbines use SCR technology for 90% emission reductions. CCUS systems planned for large-scale natural gas facilities.

major commitments

partnerships

power providers

technology partners

NVIDIA (GPU-compute) : Primary GPU supplier - 64,000+ GB200 Blackwell GPUs at Abilene by end 2026, NVIDIA H100 and L40S for Crusoe Cloud, Quantum-2 InfiniBand networking, NVIDIA is also equity investor

AMD (GPU-compute) : Alternative GPU provider for Crusoe Cloud diversification

GE Vernova (power-generation) : Seven turbines for Engine No. 1 joint venture providing 4.5 GW natural gas power capacity

Lancium (power-management) : Cross-licensed intellectual property for grid-interactive power management and load balancing, Lancium is master developer and landowner of Abilene Clean Campus site

HPE (Hewlett Packard Enterprise) (supercomputers) : HPE supercomputer systems for Crusoe Cloud climate-focused cloud offerings

financial partnerships

leadership

Chase Lochmiller

Co-Founder and Chief Executive Officer

General Partner at Polychain Capital, quantitative researcher and trader at Jump Trading and GETCO

Co-founded Crusoe with vision of utilizing stranded energy for computing. Led company through pivot from bitcoin mining to AI infrastructure. Architected Stargate Abilene partnership. Frequently quoted on AI infrastructure challenges and energy-optimized computing model.

Cully Cavness

Co-Founder, President and Chief Operating Officer

Vice President of Finance at Highlands Natural Resources (private equity-sponsored E&P company in Colorado and Montana), energy investment banker at Petrie Partners, Business Development Manager at Global Geothermal

Co-founded Crusoe bringing deep energy industry expertise. His role at Highlands exposed him to flaring challenges that inspired Digital Flare Mitigation technology. Leads operational execution and energy partnerships. His geology and finance background uniquely positions Crusoe at intersection of energy and computing.

Matthew DeNezza

Chief Financial Officer

CFO for Meritage Midstream (private midstream business), CFO for Eclipse Resources (public Utica-focused upstream company, took public in 2014)

Led over $1 billion in fundraising across venture, project, and credit capital. Critical role in structuring joint ventures with Blue Owl Capital ($15B) and Engine No. 1 (4.5 GW). Manages ESG-forward energy and computing services financing.

competitive position

Crusoe occupies a unique niche as an energy-optimized AI infrastructure provider, serving as both a wholesale data center developer/operator (Abilene) and retail GPU cloud provider (Crusoe Cloud). The company is the first and currently only operational Stargate site operator, positioning it at the center of the largest AI infrastructure initiative in history. In the wholesale market, Crusoe competes with traditional data center operators but differentiates through its behind-the-meter power generation model and energy-first approach. In the GPU cloud market, Crusoe is one of three major independent providers alongside CoreWeave and Lambda Labs, positioned between hyperscaler clouds (AWS, Azure, GCP) and smaller GPU providers. The company’s transition from bitcoin mining to AI infrastructure demonstrates first-mover advantage in recognizing and addressing AI power constraints.

strengths

• First operational Stargate site - flagship status and proof of concept

• Patented Digital Flare Mitigation technology and energy optimization expertise

• Behind-the-meter power model bypassing grid interconnection delays

• Strong financial backing ($2.8B valuation,$2.76B total raised, $11.6B project financing)

• Vertical integration from energy generation through data center operations to cloud services

opportunities

• Expansion to additional Stargate sites across United States

• Deployment of 4.5 GW Engine No. 1 natural gas capacity across new locations

• Growing AI infrastructure demand far exceeding available power supply

• Crusoe Cloud platform growth as enterprises adopt AI workloads

• Strategic acquisitions to accelerate geographic expansion or add capabilities

threats

• Hyperscaler competition (AWS, Microsoft, Google) with far greater resources

• CoreWeave ($12.1B raised) and Lambda Labs competing in GPU cloud market

• Traditional data center operators (Digital Realty, Equinix) entering AI market

• Natural gas price volatility affecting economics of behind-the-meter generation

• Tightening environmental regulations on data center emissions

projects

sources

• Crusoe Energy Systems - Official Website

• Crusoe Energy Systems (2025)

• Crusoe announces flagship Abilene data center is live

• Crusoe Energy Systems (2025-09-30)

• Crusoe expands AI data center campus in Abilene to 1.2 gigawatts

• Crusoe Energy Systems (2025-03-18)

• Crusoe, Blue Owl Capital and Primary Digital Infrastructure Enter $3.4 billion Joint Venture for AI Data Center Development

• Crusoe Energy Systems (2024-10-15)

• Crusoe, Blue Owl Capital, and Primary Digital Infrastructure enter second phase of $15 billion joint venture

• Crusoe Energy Systems (2025-05-21)

• Engine No. 1 and Crusoe Partner to Launch Powered Data Center Infrastructure Joint Venture

• Crusoe Energy Systems (2025-03-17)

• Crusoe Closes $600M in Series D Round at$2.8 Billion Valuation to Power AI

• Crusoe Energy Systems (2024-12-12)

• Crusoe Energy closes $350 million Series C funding round

• Crusoe Energy Systems (2022-04-21)

• Crusoe Energy Systems Closes $505 Million in New Capital Led by G2 Venture Partners

• Business Wire (2022-04-20)

• Lancium and Crusoe Energy Systems Announce Cross-Licensing of Intellectual Property

• Crusoe Energy Systems (2022-10-26)