October 31, 2025
VICTORIA, Texas – In a significant move to power next-generation computing, AI data center developer Crusoe has entered a partnership with nuclear energy firm Blue Energy to develop a massive data center campus in the Port of Victoria, Texas, with a power capacity of up to 1.5 gigawatts (GW).
The agreement, announced on October 30, 2025, will see Blue Energy supply power to Crusoe's planned 1,600-acre campus. The energy company plans to initiate power delivery as early as 2028, starting with natural gas generation. This initial phase will serve as a bridge, with a full transition to nuclear power targeted for 2031.
Blue Energy touts its "gas-to-nuclear" approach as a key advantage, claiming it can slash the time to deliver power to 36 months or less by utilizing existing gas infrastructure before converting to a zero-carbon nuclear source.
The Port of Victoria location was selected for its strategic advantages, including existing infrastructure, proximity to major transmission lines and fiber-optic networks, and access to one of the United States' largest natural gas pipeline systems. These factors make it an ideal site for a gigawatt-scale "AI factory" requiring immense and reliable power.
"This partnership demonstrates how we’re building the future of AI sustainably and at scale," said Andrew Likens, Crusoe's Vice President of Energy Infrastructure & Development. "Blue Energy’s gas-to-nuclear approach delivers exactly what we need: unrivaled speed to market using existing fuel sources, combined with a clear, rapid transition to the massive, carbon-free baseload power that only nuclear power can provide."
Unlike many advanced nuclear companies, Blue Energy does not manufacture reactors. Instead, it focuses on designing modular nuclear power plants that are constructed off-site in shipyards and then transported for assembly. The company describes itself as reactor-agnostic, designing its "plant architecture" to accommodate different vendor technologies. Its initial projects will utilize mature light-water reactor technology, submerged in water pools for enhanced safety.
"For the first time in the nuclear industry's history, we are building a plant with cost and schedule certainty," said Jake Jurewicz, Blue Energy's Co-founder and CEO. He noted the project aims to be the world's first project-financed nuclear power plant.
This project marks a continued evolution for Crusoe, which launched in 2019 by using wasted natural gas at oil wells for cryptocurrency mining. The company has since pivoted, divesting its crypto operations to focus on developing large-scale data centers and AI cloud services. Crusoe is also the primary developer behind the 1.2GW data center in Abilene, Texas, built for OpenAI and Oracle.
The news follows Crusoe's recent $1.4 billion funding round, led by Mubadala Capital and Valor Equity Partners, which valued the company at $10 billion. Blue Energy, founded in 2023, is a spin-out from MIT’s Nuclear Science & Engineering Department and is backed by The Engine Ventures and At One Ventures.
Source: datacenterdynamics
