Crusoe, the data center operator supplying AI computing power to Meta Platforms Inc (NASDAQ: META) and Oracle (NYSE: ORCL), is in negotiations to raise $3 billion in fresh funding.
The fundraising round is expected to push Crusoe’s valuation to $30 billion, according to Bloomberg, citing people familiar with the matter.
That figure represents three times the $10 billion valuation the company disclosed as recently as last October, marking a dramatic rise in investor confidence.
Negotiations are still ongoing, and the final valuation has not yet been formally confirmed by any of the parties involved.
Crusoe was founded in 2018 with an unusual premise: installing modular data centers directly on oil and gas fields to harness flared natural gas that would otherwise be vented into the atmosphere.
That gas was initially used to power Bitcoin mining operations, but the company sold its Bitcoin mining business to NYDIG last year, redirecting its energy and infrastructure expertise toward large-scale AI data center development.
The global AI boom has driven unprecedented demand for computing power, and Crusoe currently holds nearly 5 gigawatts of capacity tied to active execution contracts, with over 40 gigawatts across its full project pipeline.
That 40-gigawatt pipeline is sufficient to support the electricity consumption of approximately 30 million U.S. households, underscoring the sheer scale of the company’s ambitions.
Meta signed a deal last month to purchase capacity from Crusoe at data centers in Childress, Texas, and Warrenton, Missouri, adding to existing agreements with Microsoft (NASDAQ: MSFT) and Alphabet’s (NASDAQ: GOOGL) Google.
Not every project has gone smoothly, however, as Crusoe said in June that it had “paused” plans to build a data center in Wyoming after Google reportedly raised concerns about costs and the construction timeline.
The Wyoming project was sidelined after failing to secure sufficient customer commitments, according to Bloomberg, highlighting the execution risks that remain even as demand for AI infrastructure accelerates.
Crusoe’s last funding round was co-led by Valor Equity Partners and Mubadala Capital, two investors with significant stakes in the emerging AI infrastructure sector.
The company has not disclosed a specific use for the proceeds from the current fundraising round, though the funds are expected to expand its computing power infrastructure footprint further.
With clients including Meta, Microsoft, and Google, Crusoe has firmly established itself as a key node in the AI supply chain, leveraging an unconventional energy background to compete in one of the most capital-intensive sectors in technology.
