Crusoe uses stranded energy to power AI data centers
McKinsey
· November 24, 2025
· ✓ verified
Crusoe has announced it is building modular AI data centers powered by stranded and renewable energy, deploying mobile/modular units to capture flare gas and local renewables and accelerating time to market.
- Main announcement and project details: Crusoe is deploying mobile and modular data centers that capture on-site flare gas and use local renewables; its Stargate project in Abilene, Texas is sized at 1.2 gigawatts initial capacity with full build-out to occur over 24 months (completion targeted by mid-2026). The company also installed a 350-megawatt gas plant on-site to provide firm power, delivered a 100‑MW RFP project in 11 months (committed 12 months), and reports ~5,800 workers on-site daily in Abilene; Crusoe operates factories in Denver and Tulsa, plans to hire over 1,000 people in Tulsa, and is standing up capacity in Canada.
- Background, technical and energy specifics: Crusoe adopts an energy-first approach, targeting stranded sources such as oil-field flare gas, curtailed wind in West Texas (driven by production tax credit-led buildouts), and potential low-cost geothermal/hydropower in Iceland; it emphasizes modular off-site manufacturing for electrical/mechanical/plumbing systems to cut time to market and designs data centers as a data-center-scale computer to support high-density GPUs (racks currently ~140 kW, scaling toward 600 kW–1 MW).