Crusoe Raises $750 Million From Brookfield to Turn Wasted Gas Into AI Computing Power
Crusoe's $750M Brookfield Deal Electrifies AI's Energy-Hungry Future
Pioneering 'energy-first' model attracts major funding as AI compute demand soars
DENVER — In the scorching race to build infrastructure for artificial intelligence, an innovative player has secured significant ammunition. Crusoe, a company transforming wasted natural gas into computing power, announced yesterday a $750 million credit facility from Brookfield Asset Management, marking another milestone in the company's ambitious quest to reshape how AI infrastructure intersects with energy resources.
The financing, which will accelerate Crusoe's development of purpose-built AI factories and cloud platform, comes at a pivotal moment when demand for AI computing capacity continues to outstrip supply across global markets.
"The demand for AI infrastructure is growing exponentially, and this new credit facility from Brookfield provides us with the capital needed to accelerate the buildout of new AI factories," said Chase Lochmiller, CEO and co-founder of Crusoe, in a statement accompanying the announcement.
Digital Gold Rush Meets Energy Innovation
At remote oil fields across North America, Crusoe's distinctive approach becomes immediately visible. Unlike traditional data centers connected to power grids, the company's 86 mobile data centers sit directly at fossil fuel production sites, capturing natural gas that would otherwise be flared into the atmosphere.
This "stranded energy" powers high-performance computing operations while simultaneously reducing carbon emissions—a dual-purpose mission that has attracted both environmental advocates and financial backers seeking exposure to the exploding AI sector.
The global AI infrastructure market reached $60.23 billion in 2025 and is projected to surge to nearly $500 billion by 2034, according to Precedence Research data, representing a compound annual growth rate of 26.6%. With North America controlling approximately 41% of this rapidly expanding market, the competition for dominance has intensified dramatically.
"We are excited to partner with Crusoe, a company at the forefront of powering the critical infrastructure needed for AI, including one of the world's largest AI data centers in Abilene, Texas," said Eric Wittleder, Deputy CIO of Brookfield's Infrastructure Debt business.
Battling Tech Giants in the Cloud Compute Wars
Crusoe's latest financing adds to an already impressive war chest. In December 2024, the company raised $600 million in Series D funding at a $2.8 billion valuation. Earlier this year, it secured a $225 million credit facility from Upper90 specifically for AI cloud infrastructure growth. Perhaps most ambitiously, Crusoe formed a $15 billion joint venture with Blue Owl and Primary Digital Interactive to fund a massive 1.2 gigawatt AI data center in Abilene, Texas.
Yet Crusoe faces formidable competition. The market remains dominated by cloud computing giants like AWS, Microsoft Azure, and Google Cloud Platform, which together generated approximately $330 billion in cloud infrastructure revenue in 2024 alone. Meanwhile, specialized AI infrastructure providers like CoreWeave have surged ahead, with CoreWeave reaching a valuation of $19 billion and controlling approximately 250,000 GPUs across 32 data centers.
"The neocloud providers like CoreWeave and Crusoe represent a specialized evolution in the infrastructure ecosystem," explained an industry analyst familiar with the sector. "While hyperscalers offer broader services, these focused players can optimize specifically for AI workloads, potentially delivering superior performance for certain applications."
Turning Waste Into Computing Gold
What distinguishes Crusoe in this crowded landscape is its vertical integration and sustainability credentials. By processing over 10 million cubic feet of gas daily that would otherwise contribute to harmful emissions, the company creates a compelling narrative that resonates with environmentally conscious enterprises and investors.
At a typical Crusoe site, natural gas that would normally be flared is instead captured and converted into electricity, which powers sophisticated computing systems housed in modular units. This approach yields several competitive advantages: low-cost power, rapid deployment capabilities, and environmental benefits that increasingly matter to corporate customers facing ESG mandates.
The economics can be compelling. While traditional data centers must pay market rates for electricity—often their largest operational expense—Crusoe accesses fuel at near-zero marginal cost, potentially enabling attractive margins if utilization rates remain high.
Walking the Financial Tightrope
However, Crusoe's path forward contains significant challenges. Its heavy reliance on debt financing—now exceeding $975 million with the addition of the Brookfield facility—exposes the company to interest rate volatility and refinancing risks in an uncertain monetary policy environment.
The company also faces geographical limitations tied to its business model. Unlike cloud hyperscalers with global reach, Crusoe's operations remain concentrated where stranded natural gas is accessible, primarily in North American oil and gas regions, though expansion efforts into Argentina and parts of Europe are reportedly underway.
"The capital intensity of this sector can't be overstated," noted one financial analyst specializing in digital infrastructure. "These companies are essentially building power plants and data centers simultaneously, which requires massive upfront investment before generating returns."
Uncertain Future for an Energy-AI Hybrid
For investors watching this space, Crusoe represents an intriguing convergence of energy transformation and digital infrastructure. Market observers suggest several potential scenarios that could influence the company's trajectory.
Positive catalysts might include successful execution of the massive Abilene data center project, expansion of software-as-a-service offerings that generate recurring revenue streams, and potential regulatory incentives rewarding natural gas flare reduction.
Conversely, risks include a potential slowdown in AI demand, interest rate shocks affecting debt servicing costs, and technological leaps that could render the stranded-gas economic model less competitive.
"For allocators with appropriate risk tolerance, companies like Crusoe offer exposure to the intersection of energy and technology transformations," suggested a portfolio manager at a technology-focused investment firm. "However, they should be evaluated more like infrastructure projects with growth elements rather than pure technology plays."
The Road Ahead
As Crusoe deploys its new capital, industry watchers will closely monitor several indicators: progress on the Abilene facility, expansion of the mobile data center fleet toward a reported target of 200 sites by year-end, and any signs of software differentiation beyond hardware deployment.
The company's ability to navigate complex operational logistics while scaling rapidly will ultimately determine whether its unique approach can compete with both traditional hyperscalers and well-funded AI infrastructure specialists like CoreWeave.
What remains clear is that the explosive growth of artificial intelligence continues to reshape the landscape of computing infrastructure, creating opportunities for innovative models like Crusoe's energy-first approach. Whether that approach proves sustainable in a market characterized by rapid technological change and intense competition remains the multi-billion-dollar question.
Investment Perspective: Investors considering exposure to the AI infrastructure space should weigh Crusoe's unique energy-first model against its debt-heavy structure and geographic limitations. The company may offer attractive returns if it successfully scales operations and maintains cost advantages, but faces significant execution and market risks. Analysts suggest that Crusoe should be evaluated using infrastructure metrics rather than technology multiples, with potential yields in the 4-6% range. As with all investments in rapidly evolving sectors, past performance does not guarantee future results, and consultation with financial advisors is recommended before making investment decisions.