Crusoe Energy Systems, a clean energy and AI infrastructure innovator, has raised $600 million in a Series D funding round, propelling its valuation to $2.8 billion. The company receives backing from prominent investors like Founders Fund, Nvidia, and Fidelity. With this funding, Crusoe is set to address the growing energy needs of artificial intelligence (AI) while prioritizing sustainability.
From Flaring to AI: How Crusoe is Scaling Clean Energy Data Centers
Founded in 2018, Crusoe began by tackling natural gas flaring—an environmentally harmful process where excess gas like methane is burned at oil sites. Using its Digital Flare Mitigation technology, Crusoe converted waste gas into energy to power small, containerized data centers. This approach reduces methane emissions while offering oil and gas companies a reliable, cost-free alternative to routine flaring.
- According to the company, 1 Crusoe DFM-powered GPU reduces emissions by ~4.4 carbon dioxide equivalent metric tons per year.
Initially focused on cryptocurrency mining, the company has since shifted to AI-driven workloads, building clean energy data centers designed for the immense computational demands of machine learning (ML) and generative AI.
The recent funding round fuels Crusoe’s vision of building vertically integrated, AI-focused data centers powered by clean energy. A flagship project in Abilene, Texas, developed in partnership with Blue Owl Capital and Primary Digital, exemplifies this mission.
This facility, spanning 998,000 square feet, is capable of housing up to 100,000 GPUs and delivering over 1.2 gigawatts of power—enough to support the energy needs of approximately 700,000 homes.
Chase Lochmiller, co-founder and CEO of Crusoe, emphasized the importance of building the facility, noting that:
“We’ve designed this data center to enable the largest clusters of GPUs in the world that will drive breakthroughs in AI.”
Crusoe’s newly launched Crusoe Cloud platform extends its capabilities to developers and researchers globally. Designed specifically for AI and machine learning workloads, the platform provides high-performance computing power while aligning with the company’s sustainability goals.
By leveraging stranded and waste energy, Crusoe ensures that its cloud services contribute to environmental preservation without compromising on performance.
Addressing AI’s Growing Energy Demands with Nvidia’s Support
The rise of AI technologies has spiked energy demands for data centers worldwide. According to the International Energy Agency (IEA), data centers consumed 460 terawatt-hours (TWh) of energy in 2022. This figure will double by 2026.
According to an analysis by the Electric Power Research Institute (EPRI), data center energy use in the U.S. will double driven by AI.
SEE MORE: US Data Center Power Use Will Double by 2030 Because of AI
- Global energy demands for computing are surging, with projections of over 38GW by 2030. Meanwhile, inefficiencies in energy use persist: 144 billion cubic feet of natural gas were flared in 2021 and data centers alone could consume over 8% of global electricity by 2030, up from just 1% in 2020, per the IEA data.
Major companies like Microsoft, Google, and Amazon have cited energy consumption as a key hurdle in their decarbonization efforts. Crusoe’s innovative model offers a sustainable solution by repurposing waste energy and incentivizing the development of new low-carbon power sources.
By using Digital Flare Mitigation (DFM) and Digital Renewable Optimization (DRO) technologies, Crusoe captures and converts natural gas that would otherwise be flared. It also strategically positions its computing workloads near renewable energy sources, reducing inefficiencies and emissions.
The $600 million Series D round reflects the industry’s confidence in Crusoe’s ability to balance energy efficiency and technological advancement. Key supporters include Nvidia, which sees Crusoe’s infrastructure as crucial for advancing AI. Other major players like Deloitte and Vast Data do the same.
Sean Liu, Partner at Founders Fund, remarked on the company’s work, noting that:
“Crusoe is reimagining AI infrastructure from the ground up to meet and exceed organizations’ demands, powering the next wave of innovation in a sustainable way.”
The Environmental Benefits of Crusoe’s Model
Crusoe’s approach addresses two critical challenges:
- Reducing methane emissions and
- Supporting high-performance AI infrastructure.
Methane, a potent greenhouse gas, is often released during flaring, contributing significantly to climate change. By converting this waste into a productive energy source, Crusoe mitigates environmental harm while fueling technological progress.
In addition to natural gas, Crusoe taps into stranded and surplus renewable energy, further reducing reliance on traditional fossil fuels. The company’s operations span 9 U.S. states and 3 countries, including Iceland. And it has more than 15 gigawatts of clean energy projects in development.
Through its DFM tech in the U.S., Crusoe was able to avoid over 680,000 metric tons of GHG emissions. The infographic below further shows how the company’s DFM helps reduce emissions.
When it comes to its own GHG footprint, Crusoe actively tracks and reduces it by measuring Scope 1, 2, and 3 emissions annually with Emitwise’s carbon accounting platform, aligned with the GHG Protocol. The company uses quantity and spend data to calculate emissions across its operations, value chain, and employee activities.
In 2023, despite business growth doubling emissions, Crusoe’s Digital Flare Mitigation technology significantly reduced methane emissions by capturing flared gas for energy use. Combined with renewable energy purchases, Crusoe avoided more emissions than it produced, and so, Scope 2 emissions are zero.
Revolutionizing Energy Use of AI Infrastructure
Crusoe’s clean energy data centers could support the future of AI. By combining energy efficiency with technological capability, the company offers a scalable solution to the industry’s growing demands. Its vertically integrated approach enables rapid deployment of cutting-edge infrastructure, allowing it to outperform legacy cloud providers in cost and speed.
This innovative model not only meets immediate energy needs but also sets the stage for long-term sustainability. By lowering the cost of clean energy-powered AI computing, Crusoe aligns the future of computing with global climate goals.
With its latest funding, Crusoe plans to expand its data centers, enhance its cloud platform, and support the development of new clean energy projects, while remaining committed to technological innovation.
As the demand for AI infrastructure continues to grow, Crusoe’s sustainable model offers a clear path forward. By turning waste energy into a valuable resource, the company is proving that AI advancements can coexist with a greener, more sustainable future.
