Updated November 14, 2025 -Texas environmental regulators on November 4, 2025 issued preliminary approval for Fermi America to develop 6 gigawatts of natural gas generation in the state’s Panhandle, part of the company’s proposed 11-gigawatt Project Matador energy campus. The permit is an early step in a process that still requires public hearings and final clearance from the Texas Commission on Environmental Quality (TCEQ).
The project, a collaboration between Fermi America and the Texas Tech University System, would supply electricity to energy-intensive computing operations, including artificial intelligence facilities, through a privately operated grid rather than the state’s main ERCOT network. The project comes at a time when Data center projects are facing huge challenges when it comes to power demands. The proposal will now move into a formal review process and public comment period before any final authorization is granted.
A Growing Market for AI-Driven Energy
Fermi America says the site is designed to help meet rising electricity demand from cloud computing and AI infrastructure. Company filings describe a hybrid system combining natural gas, nuclear, solar, and battery storage.
The first generators are expected to be installed by 2026. At full operation, the company estimates the initial phase could offset power demand roughly equal to that of New York City.
Industry analysts note that data centers and AI workloads are becoming a major factor in U.S. energy planning. Several states, led by Texas, have seen a wave of private power projects aimed at serving those needs without drawing directly from public utilities.
Environmental and Regulatory Scrutiny
Documents filed with the TCEQ indicate that the project’s emissions are expected to comply with federal and state air-quality standards. Regulators will continue to assess potential impacts on air quality and water use as the review proceeds.
The company says it plans to add solar generation and employ hybrid cooling systems to limit water consumption. Community hearings are expected as part of the permitting phase.
Broader Context
Project Matador is one of several large-scale energy developments proposed in the Texas Panhandle as computing firms and power providers race to secure reliable electricity supplies for AI infrastructure. The project’s backers include former U.S. Energy Secretary Rick Perry and Fermi America co-founder Toby Neugebauer.
If fully built, the 11-gigawatt site would be among the largest privately operated power facilities in the world.
Also, Fermi America recently signed two major nuclear energy agreements to advance its ambitious data center campus in Amarillo, Texas. The first agreement, with South Korea’s Doosan Enerbility, follows a Memorandum of Understanding signed earlier this year. And focuses on producing long-lead-time nuclear equipment, including reactor pressure vessels and steam generators. These components will support the deployment of four planned Westinghouse AP1000 nuclear reactors, forming the backbone of the campus’s long-term power supply.
The second deal, with Hyundai Engineering & Construction (E&C), covers Front-End Engineering Design (FEED) for the four reactors, laying the groundwork for a full engineering, procurement, and construction (EPC) contract expected in early 2026. “Doosan Enerbility and Hyundai E&C have been waiting for an American company to stop power pointing about nuclear and start building it,” said Toby Neugebauer, co-founder and CEO of Fermi America. “Their firm commitment to Fermi America positions us for action, leveraging their track record to build clean, new nuclear power at the velocity and scale the President demands and the U.S. requires.”
Project Matador: One of the World’s Largest AI and Energy Complexes
Fermi America plans Project Matador, an 11 GW hyperscale data center campus in Amarillo, Texas, next to the DOE’s Pantex plant. The Texas Tech University System partners with Fermi to develop 18 million square feet of AI-focused data centers. The campus will draw power from nuclear, natural gas, solar, and wind energy sources. Fermi, co-founded by former Energy Secretary Rick Perry, filed for an IPO on Nasdaq under the ticker FRMI. The company expects the first 1 GW online by late 2026, positioning Project Matador among the world’s largest AI-energy campuses.
In July, Fermi expanded its capacity with the acquisition of more than 600MW of natural gas generation across two deals, including nine turbines, to meet near-term demand. The company aims to deliver 1GW of AI power by 2026. While natural gas will anchor the project in its early stages, Fermi’s long-term strategy prioritizes nuclear energy as the core power supply.
Washington 27th June 2025 – Texas-based Fermi America, co-founded by former U.S. Energy Secretary Rick Perry, has announced plans to build the Largest U.S. Energy and Data Complex, powered by nuclear, natural gas, and solar energy. Dubbed the “Hypergrid” project, it will be developed in partnership with Texas Tech University and formally launched on July 4.
Massive Scale and Clean Power Ambition
The largest U.S. energy and data complex will be built near Amarillo, adjacent to the DOE’s Pantex plant, spanning nearly 5,800 acres. Fermi says the Hypergrid campus could eventually produce up to 11 GW of energy, enough to power over 8.2M homes. The first 1 GW is expected online by late 2026. It will also host large-scale AI data centers, strategically located near major gas pipelines and atop a vast natural gas field, joining the largest data centers being built around the world.
Nuclear Power in the Spotlight
Fermi’s announcement comes amid renewed national focus on nuclear energy. Former Secretary Perry emphasized urgency: “We’re behind—and it’s all hands on deck.” He noted that while China is currently building 22 reactors, the U.S. has none under construction. Fermi has applied for four 1-GW nuclear reactors, though the company has not confirmed specifics or revealed financing details.
Fermi America’s nuclear agreements join a growing trend of tech and energy firms reopening or expanding nuclear plants. Alongside renewable energy, following deals like Google’s $1.6 B Iowa nuclear project with NextEra.
Political Momentum and Regulatory Scrutiny
The Largest U.S. Energy and Data Complex project aligns with recent executive orders from President Trump to fast-track nuclear reactor applications and restructure the Nuclear Regulatory Commission (NRC). While these moves aim to revive the sector, they’ve drawn criticism over concerns of weakening oversight.
The NRC confirmed it is reviewing Fermi’s applications, with more public details expected soon.
Project Summary: Largest U.S. Energy and Data Complex
- Developer: Fermi America
- Location: Amarillo, Texas (near Pantex Plant)
- Energy Capacity: Up to 11 GW (nuclear, gas, solar)
- Initial Output: 1 GW by late 2026
- Purpose: Power generation & AI data center campus
- Partners: Texas Tech University
why does it say “project aligns with executive order from FORMER president Donald Trump