Texas project puts Fermi at centre of nuclear AI push

A large energy and AI campus is taking shape outside Amarillo, Texas, as startup Fermi America plans to build what it says would be the world’s largest private power grid. The project aims to support large-scale AI training using nuclear, gas, and solar power.

Known as Project Matador, the development would host millions of square metres of data centres and generate more electricity than many US states consume at peak demand. The site is near the Pantex nuclear weapons facility and is part of a broader push for US energy and AI dominance.

Fermi is led by former Texas governor and energy secretary Rick Perry alongside investor Toby Neugebauer. The company plans to deploy next-generation nuclear reactors and offer off-grid computing infrastructure, though it has yet to secure a confirmed anchor tenant.

The scale and cost of the project have raised questions among analysts and local residents. Critics point to financing risks, water use, and the challenge of delivering nuclear reactors on time and within budget, while supporters argue the campus could drive economic growth and national security benefits.

Backed by political momentum and rising demand for AI infrastructure, Fermi is pressing ahead with construction and partnerships. Whether Project Matador can translate ambition into delivery remains a key test as competition intensifies in the global race to power next-generation AI systems.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!