By Positive Phil, Positive Phil Blog
Imagine a small startup, born from the rugged oilfields of Texas, now spearheading a $500 billion project to build the world’s largest AI data center. That’s the inspiring story of Crusoe Energy, a company founded by Chase Lochmiller and Cully Cavness, two high school friends with a passion for innovation and a vision to harness wasted energy for cutting-edge technology. Their journey from mining bitcoin with flare gas to constructing Project Stargate—a groundbreaking AI data center for OpenAI, Oracle, and Microsoft—is a testament to grit, ingenuity, and the power of dreaming big.
From Flare Gas to AI Revolution
Crusoe Energy’s story began in 2018 with a bold idea: redirect the natural gas flared off during oil drilling—energy that would otherwise be wasted—into powering bitcoin mining operations. Founders Lochmiller and Cavness, both Denver natives and adventure enthusiasts, saw untapped potential in “stranded” energy sources. Their resourcefulness, much like the fictional Robinson Crusoe who inspired their company’s name, led them to create mobile computing rigs that turned wasted gas into valuable electricity. This innovative approach caught the attention of early investors like Bain Capital and Valor Equity Partners, despite initial skepticism about the business model.
By 2020, Crusoe faced a setback when the COVID-19 pandemic halted oil drilling, drying up their flare gas supply. But true to their resilient spirit, Lochmiller and Cavness pivoted, focusing on greener energy sources like West Texas’ abundant wind power. This adaptability set the stage for their leap into AI, a field that demands massive computing power and sustainable energy solutions.
Project Stargate: A “Factory of Factories”
Fast forward to 2025, and Crusoe is at the heart of Project Stargate, a $500 billion initiative in Abilene, Texas, codenamed Project Ludicrous. This ambitious venture aims to build a data center that will house 100,000 Nvidia GPUs in each of its first two 500,000-square-foot buildings, consuming enough electricity to power a city of 100,000. The goal? To train AI models that surpass human cognition, creating what Lochmiller calls a “factory of factories” that will produce intelligence as a service.
What makes this project truly inspiring is its scale and vision. Supported by tech giants like Oracle, Microsoft, and OpenAI, and fueled by investments from Blue Owl Capital and Primary Digital Infrastructure, Crusoe is building a future where AI becomes as ubiquitous as electricity. The project leverages West Texas’ surplus wind energy, supplemented by backup gas turbines, to create a sustainable powerhouse for AI innovation.
Overcoming Challenges with Optimism
The road to Project Stargate hasn’t been without hurdles. Some Crusoe clients have raised concerns about the reliability of its cloud computing services, citing a 45-hour outage earlier this year. Yet, Crusoe maintains an impressive 99.98% uptime and has won over customers like Windsurf’s CEO Varun Mohan, who praises the company’s speed in delivering hardware access. Lochmiller’s optimism shines through as he sees these challenges as opportunities to improve and innovate.
The broader AI industry also faces questions about overbuilding data centers, especially with emerging models like China’s DeepSeek, which claim to achieve high performance with less compute. But Lochmiller remains undeterred, citing the Jevons Paradox—the idea that as AI becomes more efficient, demand for it will only grow. With long-term contracts from Oracle and Microsoft, Crusoe is well-positioned to ride this wave of demand.
A Vision for a Smarter World
What’s most inspiring about Crusoe’s story is its commitment to a bigger purpose. Lochmiller envisions a world where AI frees up human creativity, allowing us to focus on higher-level ideas and innovations. By building Project Stargate in America, using locally manufactured components and sustainable energy, Crusoe is not just creating a data center—it’s laying the foundation for a new era of intelligence.
As 2,000 workers toil under the Texas sun, transforming 1,000 acres of dusty land into a hub of technological progress, Crusoe Energy reminds us that even the smallest startups can achieve monumental feats with vision, resilience, and a commitment to positive impact. The future of AI is bright, and Crusoe is lighting the way.
Stay inspired, stay positive, and keep dreaming big!
Positive Phil is a motivational speaker, entrepreneur, and host of the Positive Phil Podcast, dedicated to sharing stories of innovation and positivity. Follow him for more inspiring stories that uplift and empower.
Sources: Adapted from Forbes article by Christopher Helman and Rashi Shrivastava, published April 10, 2025.
