Boom Supersonic is making a strategic pivot that could accelerate its journey to commercial supersonic flight. The aircraft innovator announced Tuesday its entry into the power generation market, repurposing its turbine technology to create stationary power plants with data center operator Crusoe securing the first major contract.
This diversification represents a significant revenue opportunity for Boom while maintaining alignment with its core aerospace mission. The company’s founder explicitly compares this strategy to SpaceX’s Starlink business model, where a profitable secondary venture helps fund primary objectives.
Inside Boom’s $1.25 Billion Power Plant Deal
Crusoe, a data center startup, has committed to purchasing 29 of Boom’s newly developed 42-megawatt Superpower turbines in a deal valued at $1.25 billion. This agreement will eventually provide Crusoe with 1.21 gigawatts of power generation capacity for its data centers, with initial deliveries scheduled for 2027.
To support this new venture, Boom has secured $300 million in fresh funding led by Darsana Capital Partners, with participation from notable investors including Altimeter Capital, Ark Invest, Bessemer Venture Partners, Robinhood Ventures, and Y Combinator. The capital will enable Boom to commercialize the Superpower stationary turbine while continuing development of its Overture supersonic aircraft.
According to Boom CEO Blake Scholl, profits generated from Superpower sales will directly fund the company’s aviation ambitions. “I’ve been kind of keeping my eyes open for 10 years for what could be our Starlink,” Scholl explained, referencing SpaceX’s profitable satellite internet service. “I said no to a thousand things because I concluded they were distractions. This one we’re saying yes to because it’s so clearly on path.”
Technical Synergies and Manufacturing Plans
The Superpower stationary turbine shares approximately 80% of its components with Boom’s airborne Symphony engine, creating significant manufacturing efficiencies. This commonality allows Boom to leverage its aerospace engineering expertise while entering an adjacent market.
The company plans to initially manufacture these turbines at its existing facilities while developing a dedicated factory, with an announcement expected next year. Boom has outlined an ambitious production roadmap: 1 gigawatt capacity in 2028, 2 gigawatts in 2029, and 4 gigawatts by 2030. If achieved, this would represent a substantial addition to the market for deployable turbines.
Earlier this year, Boom demonstrated its aerospace capabilities when its XB-1 demonstrator became the first civil aircraft developed by a private company to break the sound barrier, highlighting the company’s technical credibility.
Cost Analysis and Competitive Positioning
The Crusoe deal values Boom’s power generation technology at $1,033 per kilowatt of capacity. For this price, Boom will provide turbines, generators, control systems, and maintenance services, while Crusoe assumes responsibility for pollution controls, electrical connections, and other site requirements.
This pricing structure positions Boom’s offering at the premium end of the market. Traditional aeroderivative turbines (those adapted from aircraft engines) typically cost around $1,600 per kilowatt, but that figure usually includes pollution controls, engineering, construction, and other expenses that Boom’s customers will need to provide separately.
When accounting for these additional costs, industry analysis suggests Boom’s total solution could exceed $2,000 per kilowatt—a price point more aligned with advanced combined cycle gas turbines projected for the early 2030s rather than simple cycle turbines like Superpower.
Efficiency and Environmental Considerations
Boom’s Superpower turbine targets 39% efficiency, comparable to existing competitors in the simple cycle gas turbine market. While this falls short of the 60%+ efficiency achieved by combined cycle systems (which recover waste heat), Scholl indicated that Boom is developing a “field upgrade” to convert its turbines to combined cycle operation.
The physical deployment model follows industry standards for aeroderivative generators, with each Superpower unit delivered in a shipping container. Customers like Crusoe will handle site-specific requirements including gas and electrical connections.
Environmental considerations include noise pollution, with Scholl stating that Superpower units should be “no louder” than existing aeroderivative turbines. However, this comparison offers limited reassurance, as residents near similar installations have reported hearing comparable turbines from half a mile away.
Strategic Implications for Boom’s Future
This power generation initiative represents a calculated risk for Boom Supersonic. By diversifying into a related but distinct market, the company creates a potential revenue stream that could accelerate its primary goal of commercial supersonic flight.
The approach mirrors successful strategies employed by other ambitious transportation technology companies. SpaceX’s Starlink satellite internet service has become profitable while supporting the company’s broader space exploration mission. Similarly, Tesla’s energy storage business complements its automotive operations while addressing related technological challenges.
Despite the promising outlook, Boom faces significant challenges in the coming years. Hardware startups often struggle to scale production efficiently, and many promising ventures fail during the transition from prototypes to commercial manufacturing. The company must successfully navigate this “valley of death” while managing two complex product lines simultaneously.
Market Context and Industry Impact
Boom’s entry into power generation comes amid growing demand for flexible, rapidly deployable energy solutions, particularly for data centers. Companies like Crusoe represent a new generation of computing infrastructure providers with substantial power requirements and unique deployment models.
If Boom can successfully execute its manufacturing plans, the company could become a meaningful player in specialized power generation while advancing its aerospace ambitions. However, the power generation market is highly competitive, with established manufacturers offering proven solutions at various price points.
The ultimate success of this strategy depends on Boom’s ability to deliver reliable, cost-effective turbines while maintaining focus on its supersonic aircraft development. If executed properly, this dual-market approach could accelerate the return of commercial supersonic flight—potentially sooner than even Boom originally anticipated.