Fermi America's $70B Bet: Powering the AI Revolution with a Nuclear-Fueled Grid

NEW YORK, NY – November 10, 2025

The Race for AI Power Heats Up

The artificial intelligence boom is creating an insatiable demand for electricity, pushing power infrastructure to its limits. While tech giants scramble to secure reliable energy sources, a new player is making a bold move: Fermi America. The company, co-founded by former U.S. Energy Secretary Rick Perry and entrepreneur Toby Neugebauer, is embarking on a $70-90 billion project to build one of the world’s largest private electric grids, designed specifically to power the next generation of AI applications. Dubbed Project Matador, the massive complex in Carson County, Texas, aims to deliver up to 11 gigawatts of power through a blend of nuclear, natural gas, solar, and battery storage.

A Gigantic Gamble in the Texas Desert

Fermi America's ambitions are audacious. The project envisions four Westinghouse AP1000 nuclear reactors, a 6 GW natural gas plant, and substantial solar and battery storage capacity. “The current grid infrastructure simply isn’t equipped to handle the exponential growth in power demand from AI,” explains one industry analyst. “Someone needs to take the initiative, and Fermi America is willing to bet big.” The sheer scale of Project Matador is drawing both excitement and skepticism. While proponents laud the project as a necessary step to unlock the full potential of AI, critics question its financial viability and environmental sustainability.

The company recently detailed its Q3 2025 performance, showcasing significant investment and progress toward construction. However, it currently doesn’t generate revenue and relies heavily on a structured financing strategy. Preliminary agreements are in place, with the company anticipating securing letters of intent from major tech clients. The firm believes that the ‘behind-the-meter’ model of providing power directly to AI data centers will offer significant cost savings and reliability advantages.

Beyond the Megawatts: Navigating Risks and Rewards

Fermi America isn’t just building a power plant; it’s constructing an entire ecosystem. The location in Carson County, Texas, was strategically selected to leverage the state’s pro-energy policies and abundant resources. The company secured a 99-year lease for the land from the Texas Tech University System, offering regulatory and permitting advantages. However, the project faces significant hurdles. Building a nuclear power plant is a complex and time-consuming process, subject to stringent regulatory oversight. Delays and cost overruns are common. “The permitting process alone could take years,” says an energy consultant. “And nuclear power, while carbon-free, isn’t without its risks.”

Furthermore, the company's dependence on natural gas raises concerns about its long-term environmental impact. While Fermi America emphasizes the potential for carbon capture technologies, critics argue that relying on fossil fuels undermines efforts to transition to a truly sustainable energy future. One observer notes, “The promise of carbon capture is often overstated. It’s expensive, and the technology isn’t fully proven at scale.” The project also faces competition from other initiatives to address the AI power challenge. Google, Microsoft, and Oracle are all investing in dedicated power solutions, including nuclear reactors and renewable energy projects.

The Founders and Their Vision

The leadership team at Fermi America brings a unique blend of energy expertise and entrepreneurial experience. Rick Perry, with his long tenure as Governor of Texas and Secretary of Energy, brings a deep understanding of the energy landscape. Toby Neugebauer, a veteran energy private equity investor, brings the financial acumen and operational expertise needed to bring a project of this magnitude to fruition. “They have a clear vision,” says one investor. “They believe that dedicated power infrastructure is essential to unlock the full potential of AI.”

However, the backgrounds of the founders also raise questions about potential conflicts of interest. Perry’s close ties to the fossil fuel industry and Neugebauer’s history of energy investments have drawn scrutiny from environmental advocates. While the company maintains that it is committed to sustainability, critics argue that its business model prioritizes profits over environmental concerns. “Their track records suggest they are more comfortable with traditional energy sources,” says one activist.

Ultimately, the success of Project Matador will depend on a complex interplay of factors, including regulatory approvals, financing, technology, and market demand. Fermi America is betting that its vision of a dedicated power infrastructure for AI will resonate with tech companies and investors. But in a rapidly evolving energy landscape, the risks are as significant as the rewards.