/Tech3h ago

Google drops Crusoe Energy from a 1.8 GW Wyoming AI data center project over cost and timeline concerns

Story Overview

Google has asked Crusoe Energy to step back from developing the 1.8 GW Project Jade campus in Cheyenne, leaving the site to advance under Tallgrass Energy while Google stays on as the intended tenant. The move stems directly from worries about costs and delivery speed, and it arrives alongside separate decisions by Oracle and OpenAI to walk away from expanding a Crusoe-built site in Texas.

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Chamath Palihapitiya
Gary Marcus#156
Original post
zerohedge@zerohedge

*CRUSOE PUSHED ASIDE AT WYOMING AI PROJECT AFTER GOOGLE CONCERNS

First LLM price cuts, now data center cancelations

7:01 AM · Jun 11, 2026 · 168.2K Views
Cost Pressure

Smaller developers face tighter scrutiny

Hyperscalers appear ready to sideline partners when timelines or budgets slip, even on projects already approved for construction.

Open Question

Crusoe's remaining pipeline stays unclear

The company still claims nearly 5 GW under contract, yet no details confirm whether other hyperscaler deals face similar pauses or renegotiations.

Sentiment

Many users criticized Google for dropping Crusoe from the Wyoming AI data center project over costs and called big-tech expectations brutal, while a few expressed optimism about a Trump bailout or alternatives like IREN.

Pos
22.8%
Neg
77.2%
19 comments with sentiment.
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Chamath Palihapitiya@chamath

Standing up a next-gen data center is no joke. While it may seem like the big boys will backstop you - they really won’t. And they have big expectations based on their history of execution - ie they are good at this so they expect the same from others.

If you can’t live up to their expectations, the liquidated damages clauses, alone, can bankrupt a neoscalers. Then you can also loose your IG wrapper which can do it as well.

Net/net, lots of upside if you get it right but this isn’t for the faint of heart.

Negligible Capital@negligible_cap

So Crusoe did not pause the 1.8GW datacenter development at the request of a hyperscaler after all

“In reality, Crusoe is being pushed aside, people familiar with the situation said. The company tried and failed to lock in customers including Alphabet Inc.’s Google at the site, the people said. The talks with Google stalled after the technology giant raised concerns about the costs and timetable under Crusoe’s watch, some of the people said, asking not to be identified because the information isn’t public.“

$BKH is continuing the project forward with $GOOG, and without Crusoe as a development partner

32mViews 30.7KLikes 99Bookmarks 19
Enes@Eorekan

@zerohedge Data center is still being built by the way. It's just that the developer have changed.

Typical Zerohedge permabear post.

2hViews 531Likes 19
John Michael Kane@thejmkane

@zerohedge Yes dr doom, you’ve uncovered a real demand issue here 🤣🤣🤣

3hViews 1.5KLikes 14Bookmarks 1
Ferbin@Ferbin08

@zerohedge Google has the models. Crusoe has the pipes. When AI gets cheaper, profits shrink everywhere. Only the player who owns both survives. This was always the ending.

3hViews 629Bookmarks 1
A girl who likes Trump 👧Emily@Emily774c2

@zerohedge First LLM prices dropped, now data center prices are being cut. Is the AI ​​bubble about to burst?

3hViews 559Bookmarks 1
Arslan Iqbal@thearslaniqbal

@zerohedge LLM price cuts and data center cancellations point to the same thing. Demand is not growing as fast as expected. The AI buildout might be slowing down.

3hViews 741Likes 1
zecrdahge@Roughsensation

@zerohedge My next Strategy.

🔽

3hViews 725
Henry McKinney@henry_mckinney

@zerohedge @grok explain simply please

3hViews 375
How To Make War@HowToMakeWar1

@zerohedge @grok what does this mean?

3hViews 187
BitcoinAIGuy@BitcoinAIGuy

@chamath $IREN fixes this

22mViews 134Likes 3
zecrdahge@Roughsensation

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3hViews 31
meowbooks@meowbooksj

@ns123abc ouch

1hViews 306Likes 2
nougatbits@nougatbits2

@zerohedge @finanzmarktwelt You underestimate the Jevon Paradoxon. When coal engines become more efficient and need fewer coal, the demand of coal doesn’t collapse because more people use that engines.

2hViews 819Likes 1
Grok@grok

Crusoe (AI infra builder for hyperscalers) was developing Project Jade: a huge 1.8 GW data center campus in Cheyenne, WY (scalable to 10 GW) with Tallgrass Energy.

At their customer's request (undisclosed; some reports point to Google), Crusoe paused work ~2 months ago and stepped aside. The project isn't dead—Tallgrass is proceeding with power infrastructure and seeking a new developer partner. The end tenant remains the same.

Crusoe claims ~5 GW in other active contracts.

It signals hyperscalers tightening control, bypassing intermediaries for cost/strategy reasons during the AI buildout. First model price drops, now selective project tweaks—not a broad cancellation.

3hViews 19
Ooooooof!@fluffydogggggg

@zerohedge don't worry stinks bid! Trump will buy tech and make us all rich!

3hViews 1.9K
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