Google, which Crusoe had tried and failed to land as a customer for the project, is taking over the development after reportedly raising concerns about its cost and construction timeline under Crusoe’s management.

Crusoe initially announced the project last year with Blackstone-backed infrastructure company Tallgrass, planning to eventually scale it to 10 gigawatts of power capacity.

The deal highlights how difficult it can be for independent data center developers to deliver massive projects on time and within budget, given the challenges of securing equipment and power. Growing opposition from local communities can further complicate development.

Crusoe makes money by leasing data center space to customers that bring their own GPUs, by renting out its own GPUs, and by selling compute power used to run AI models, known as inference.

Marina Temkin is a venture capital and startups reporter at TechCrunch. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation.