Crusoe Energy Systems, a trailblazer in the realm of clean energy and AI infrastructure, has recently secured an impressive $600 million in its Series D funding round, catapulting its valuation to a substantial $2.8 billion. The company has garnered support from notable investors such as Founders Fund, Nvidia, and Fidelity. This significant funding injection positions Crusoe to effectively tackle the escalating energy demands of artificial intelligence (AI) while maintaining a steadfast commitment to sustainability.
Founded in 2018, Crusoe embarked on its journey by combatting natural gas flaring, a detrimental practice where surplus gas like methane is incinerated at oil sites. Through its innovative Digital Flare Mitigation technology, Crusoe transformed wasted gas into energy to fuel compact, containerized data centers. This approach not only curtails methane emissions but also provides oil and gas enterprises with a dependable, cost-effective alternative to routine flaring. According to the company, each Crusoe DFM-powered GPU can reduce emissions by approximately 4.4 carbon dioxide equivalent metric tons annually.
Initially concentrating on cryptocurrency mining, Crusoe has since pivoted towards AI-driven workloads, erecting clean energy data centers tailored to meet the substantial computational demands of machine learning (ML) and generative AI. The recent infusion of funding fortifies Crusoe’s vision of erecting vertically integrated data centers centered on AI and powered by clean energy. A noteworthy project in Abilene, Texas, developed in collaboration with Blue Owl Capital and Primary Digital, serves as a prime example of this mission. Spanning an impressive 998,000 square feet, this facility has the capacity to accommodate up to 100,000 GPUs and deliver over 1.2 gigawatts of power—sufficient to meet the energy requirements of approximately 700,000 households. Chase Lochmiller, co-founder and CEO of Crusoe, underscored the significance of this facility, emphasizing that: “We’ve designed this data center to facilitate the largest clusters of GPUs globally, propelling breakthroughs in AI.”
Crusoe’s newly unveiled Crusoe Cloud platform extends its offerings to developers and researchers worldwide. Tailored specifically for AI and machine learning workloads, this platform furnishes high-performance computing capabilities while upholding the company’s sustainability objectives. By leveraging stranded and surplus energy, Crusoe ensures that its cloud services contribute to environmental preservation without compromising on performance.
The burgeoning prominence of AI technologies has precipitated a surge in energy requisites for data centers on a global scale. As per the International Energy Agency (IEA), data centers consumed a staggering 460 terawatt-hours (TWh) of energy in 2022, with projections indicating a twofold increase by 2026. An analysis by the Electric Power Research Institute (EPRI) forecasts that data center energy consumption in the U.S. will double, primarily driven by AI. Global computing energy demands are on an upward trajectory, with estimates projecting over 38GW by 2030. Despite this, inefficiencies in energy utilization persist, with 144 billion cubic feet of natural gas being flared in 2021. Data centers alone could consume over 8% of global electricity by 2030, a stark rise from just 1% in 2020, in line with IEA data. Leading corporations such as Microsoft, Google, and Amazon have identified energy consumption as a pivotal obstacle in their decarbonization endeavors.
Crusoe’s innovative model proffers a sustainable solution by repurposing waste energy and fostering the development of new low-carbon energy sources. Through the utilization of Digital Flare Mitigation (DFM) and Digital Renewable Optimization (DRO) technologies, Crusoe captures and converts natural gas that would otherwise be flared. By strategically siting its computing workloads in proximity to renewable energy sources, Crusoe diminishes inefficiencies and emissions. The $600 million Series D round underscores the industry’s confidence in Crusoe’s ability to harmonize energy efficiency with technological progress. Key endorsers include Nvidia, which deems Crusoe’s infrastructure pivotal for advancing AI, alongside other major entities like Deloitte and Vast Data.
Sean Liu, Partner at Founders Fund, lauded Crusoe’s endeavors, remarking that: “Crusoe is reimagining AI infrastructure from the ground up to meet and exceed organizations’ demands, propelling the next wave of innovation in a sustainable manner.” Crusoe’s approach adeptly tackles two critical challenges: the reduction of methane emissions and the facilitation of high-performance AI infrastructure. Methane, a potent greenhouse gas, is often released during flaring, significantly contributing to climate change. By repurposing this waste into a productive energy source, Crusoe not only mitigates environmental harm but also propels technological advancement. In addition to natural gas, Crusoe harnesses stranded and surplus renewable energy, further diminishing reliance on traditional fossil fuels.
Crusoe’s operations span across 9 U.S. states and 3 countries, including Iceland, with over 15 gigawatts of clean energy projects in the pipeline. Through its DFM technology in the U.S., Crusoe managed to avert over 680,000 metric tons of greenhouse gas emissions. The company diligently monitors and reduces its greenhouse gas footprint by annually assessing Scope 1, 2, and 3 emissions through Emitwise’s carbon accounting platform, in alignment with the GHG Protocol. By leveraging quantity and expenditure data, Crusoe calculates emissions across its operations, value chain, and employee activities.
Crusoe’s clean energy data centers stand poised to support the future of AI infrastructure. By amalgamating energy efficiency with technological prowess, the company offers a scalable solution to the burgeoning demands of the industry. Its vertically integrated approach enables swift deployment of cutting-edge infrastructure, enabling it to outshine legacy cloud providers in terms of cost and speed. This innovative model not only caters to immediate energy requisites but also paves the way for long-term sustainability. By reducing the cost of clean energy-powered AI computing, Crusoe aligns the trajectory of computing with global climate objectives. With its recent funding injection, Crusoe intends to expand its data centers, enhance its cloud platform, and bolster the development of new clean energy projects, all while upholding its commitment to technological innovation. As the demand for AI infrastructure continues its upward trajectory, Crusoe’s sustainable model offers a clear pathway forward.
By repurposing waste energy into a productive resource and championing sustainability, Crusoe is revolutionizing the energy landscape of AI infrastructure, propelling the industry towards a greener and more efficient future.
