Texas-Based Company Proposes Ambitious Nuclear and Data Center Development with Political Overtones
A prominent Texas enterprise, spearheaded by Rick Perry-former U.S. Energy Secretary and Texas governor-has submitted a federal application to establish a massive nuclear power facility. The project, which aims to create what its proponents describe as the world’s largest data-center campus, carries significant political implications.
A Vision for a Nuclear-Driven Data Hub
Fermi America, the Texas-based firm co-founded by Perry, has announced plans to develop a sprawling complex adjacent to the Pantex nuclear weapons assembly plant near Amarillo. According to confidential documents obtained by The Washington Post, the company envisions constructing four one-gigawatt nuclear reactors, collectively branded as the “Donald J. Trump Advanced Energy and Intelligence Campus.” This naming choice underscores the project’s political symbolism, aligning it with former President Trump’s energy policies.
The Challenges and Opportunities in U.S. Nuclear Expansion
In the current U.S. energy landscape, new large-scale nuclear projects are rare due to historical issues such as cost overruns and lengthy construction timelines. Instead, many industry players are pivoting toward modular reactors-smaller, factory-built units designed for quicker deployment and reduced expenses. Nonetheless, Fermi’s proposal aims to revive traditional nuclear power at an unprecedented scale.
Timeline and Strategic Location
Fermi’s leadership, including Executive Chairman Toby Neugebauer, expresses confidence in completing the project by 2032, citing the remote Texas Panhandle as a strategic advantage that could streamline permitting and construction processes. Neugebauer emphasizes the importance of the location, stating, “If we can’t do it here, it’s unlikely anywhere else,” highlighting the project’s ambitious scope.
Energy Infrastructure and Backup Plans
Beyond nuclear reactors, the complex will incorporate substantial natural gas facilities, with pipelines in the vicinity capable of supplying enough fuel to generate approximately 11 gigawatts of electricity-comparable to the total energy consumption of Manhattan. This backup energy source is intended to ensure continuous power supply for the data centers, even if nuclear plans encounter delays or obstacles.
Funding, Partnerships, and Leadership
Details regarding the financial backing of the project remain opaque, with Fermi’s partners and investors yet to be fully disclosed. The company is collaborating with the Texas Tech University system, and Perry’s son, Griffin Perry, is among the founders and investors. Griffin Perry also serves on the board of the Cotton Bowl Athletic Association, which hosts the annual college football game. Fermi’s executive team boasts veterans with extensive experience in financing and constructing large-scale energy projects, including nuclear facilities worldwide.
Political Messaging and Public Perception
Fermi’s social media channels frame the project as a tribute to Trump, who appointed Perry as energy secretary and has recently taken steps to influence nuclear regulatory policies. A post on LinkedIn states, “It’s time we lead the charge to Make America Nuclear Again,” accompanied by a video of Trump looking resolutely into the camera. The White House has not issued any official comment regarding the project.
While the company has not finalized a name for the site, it has used the Trump moniker in its regulatory filings. Construction is targeted to commence as early as next year, with plans to have significant gas-powered data center operations operational by 2026.
The Broader Context: Data Centers and Energy Demand
This initiative is part of a broader trend of colossal data-center developments across the United States, driven by surging artificial intelligence (AI) and cloud computing demands. Notably, the Stargate project-a joint effort by OpenAI and SoftBank-is planning a five-gigawatt campus in Abilene, Texas, powered by a mix of gas, renewable, and potentially nuclear energy.
Meanwhile, major tech giants are securing their energy supplies amid growing concerns over power availability. Microsoft has negotiated to reopen the shuttered Three Mile Island nuclear plant in Pennsylvania, with plans to purchase all its output by 2027. Amazon has committed to consuming power from another Pennsylvania plant, while Meta has secured a deal for Illinois’ nuclear capacity. These agreements reflect the increasing reliance of tech firms on nuclear energy to meet their expanding data processing needs.
Regulatory Environment and Political Interference
Fermi’s application coincides with a period of turbulence within the Nuclear Regulatory Commission (NRC). Recent executive orders from the Trump administration aim to increase White House oversight over nuclear approvals, challenging the agency’s traditionally independent stance. Reports indicate that the administration has dispatched representatives from the U.S. Department of Energy (DOE) to the NRC, and shortly thereafter, NRC Commissioner Christopher Hanson was unexpectedly dismissed without explanation. The removal of Hanson and other senior officials has raised concerns among industry stakeholders about potential politicization of nuclear regulation.
Future Outlook and Industry Implications
Fermi’s licensing application, submitted on June 17, seeks an expedited review process, with plans to proceed in phases rather than waiting for complete information. The application proposes naming each of the four Westinghouse AP1000 reactors after current U.S. presidents, reflecting a symbolic connection to national leadership.
Experts estimate that constructing a nuclear plant of this magnitude could take approximately ten years. Past projects, such as Georgia’s Vogtle units, experienced significant delays and cost overruns-$17 billion over budget and seven years behind schedule-highlighting the challenges ahead. Efforts to complete similar reactors in South Carolina have faced financial setbacks, though there is hope that new investment or industrial partnerships could revive these initiatives.
Global Competitiveness and Regulatory Reforms
Neugebauer asserts that international competitors, especially China, are successfully building AP1000 reactors on schedule and within budget, contrasting with the U.S. experience. He criticizes recent regulatory changes under Trump, claiming they aim to level the playing field and foster domestic nuclear development. “We want to build these reactors for America,” he states, expressing frustration over the current regulatory environment.
The Future of Nuclear Power in the U.S.
As AI and data center demands escalate, the push for large-scale, reliable energy sources intensifies. Projects like Fermi’s Texas campus exemplify this trend, aiming to combine nuclear power with renewable and natural gas resources to meet the growing digital economy’s needs. However, the path forward remains complex, with regulatory, financial, and political hurdles to overcome.
The landscape of nuclear energy in the United States is at a pivotal juncture, with ambitious projects reflecting both technological innovation and political influence. The coming years will determine whether these efforts can translate into a sustainable, secure energy future for the nation.
