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Texas firm unveils plan for massive AI‑powered energy hub with nuclear, gas and solar

by Carien B.
July 24, 2025
in Energy
Texas

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By Timothy Gardner

WASHINGTON, July 26 (Reuters)

Apart from everything that we have come to learn and love about the Lone Star State of Texas, one thing stands tall above everything else – Energy. It is no wonder that this piece of land is referred to as the “Energy Capital of the World”. It has gone to great lengths to diversify its energy mix. Enhancements to the infrastructure, as well as boosting capacity to the energy grid, are commonplace.

Aiming to change the energy world

The energy sources found in Texas are wildly diverse. Natural gas accounts for approximately 47.4% of the state’s power generation capabilities, while Texas leads the way in wind energy production. Crude oil production stands at about 42.5% with coal as an energy source to a lesser degree.

Nuclear energy and solar also add to the portfolio. Fermi America, a Texas company co-founded by former U.S. Energy Secretary Rick Perry, aims to build the largest energy and data complex of its kind powered by nuclear, natural gas, and solar, it said on Thursday.

Fermi plans to partner on the “Hypergrid” project with Texas Tech University and said it will be launched on July 4. Perry, who also served as Texas governor, said that China is building 22 nuclear reactors while the U.S. is building none. “We’re behind – and it’s all hands-on deck. We need to be doing everything in our power to win this race, because this is the race that really matters.”

Planting some nuclear seeds

Interest in building new nuclear plants has spiked after President Donald Trump issued executive orders last month that aim to fast-track applications for new reactors and overhaul the Nuclear Regulatory Commission. Nuclear critics and some proponents have criticized the overhaul as potentially detrimental to the industry and putting politics ahead of safety and public health.

Trump this month also fired Democratic NRC commissioner Chris Hanson. Fermi said the Amarillo campus has the potential to deliver up to 11 gigawatts (GW) of new nuclear, gas, and solar power, about enough for more than 8.2 million homes, with 1 GW expected online by late 2026. It did not say how much the project would cost or how it is being financed.

Fermi said the project will be the largest U.S. nuclear power complex, but did not say when it would be completed. U.S. nuclear power has been plagued by delays and cost overruns, with the last reactor coming online last year in Georgia. The last two reactors completed in Vogtle, Georgia, cost a total of more than $30 billion, according to the U.S. Energy Information Administration

A governing framework for success

The NRC said it is reviewing applications from Fermi, which should be public soon. The Washington Post said the project has applied for four 1-GW nuclear reactors. Fermi did not immediately confirm that. The NRC or National Regulatory Commission’s input hear seems to be of high importance. This independent executive branch regulates the use of radioactive materials.

This ensures that a high level of environmental and public health and safety is adhered to. A further important task that NRC fulfils is to oversee the waste management and operation of nuclear power plants. The nearly 5,800-acre (2,347-hectare) campus will also have capacity for large artificial intelligence data centers. The site, near the Department of Energy’s Pantex nuclear weapons plant, “underscores Fermi’s strategic position to build clean, safe, new nuclear power for America’s next-generation AI,” Fermi said.

The site is also situated near some of the largest U.S. gas pipelines and atop a large natural gas field. This project in itself will have wider implications, specifically where it relates to the collaboration between Texas Tech and Fermi. The benefits are not only in the workforce, but also on an academic and research level are plentiful. Some meaningful educational opportunities will evolve from this.

GCN.com/REUTERS.

GCN

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