Inside Project Matador: What Fermi America's 5,800-Acre AI and Energy Campus Means for Builders and Investors
Outside the Pantex nuclear weapons plant near Amarillo, Fermi America is carving canals for power lines and grading a private substation. The plan: a 5,800-acre, off-grid AI and energy campus with 18 million square feet of data centers and enough on-site generation to exceed the peak demand of more than 15 U.S. states.
Led by Toby Neugebauer with Rick Perry on the board, the venture pairs a massive real estate play with heavy infrastructure. For real estate and construction pros, it's the blueprint for the next wave of hyperscale builds: self-powered, defense-adjacent, and politically connected.
Scope, Site, and Schedule
Fermi holds a 99-year lease from Texas Tech University on prairie land in Carson County, about 20 miles from Amarillo. Former Pantex bunkers are being repurposed to hold racks of chips, and early works are moving dirt daily.
The private grid will stack gas, solar, batteries, and four AP1000 nuclear reactors. Fermi targets its first 1 GW of gas generation online by the end of 2026, with the first reactor producing power by 2032. Full build-out is billed at roughly 11 GW.
Who's Involved (and Why It Matters)
Neugebauer is pushing the "nuclear-powered AI" thesis and courting hyperscalers as anchor tenants. Fermi is buying reactors from Westinghouse and touts relationships with global EPCs from South Korea. The project rides policy momentum out of Washington favoring AI infrastructure and nuclear permitting speed.
The political tailwind doesn't erase execution risk. Nuclear still requires site-specific approvals, and gas units need state air permits (Texas has given preliminary approvals). The scale will test supply chains across turbines, transformers, switchgear, and heat rejection equipment.
Capital Stack and Tenant Risk
Fermi went public Oct. 1 as a REIT, raising $682 million and debuting at a $19 billion market cap. It has no reported revenue and relies on leasing to tech clients. A heavily rumored anchor deal fell through in December; speculation tied it to Amazon, unconfirmed by both sides.
Estimated project cost: $60 billion-plus. The last U.S. nuclear units to reach operation overshot original budgets. Investors like the buzzwords-AI, data centers, nuclear-but timing and financing are the choke points. Until leases are inked and financing closes against clear milestones, volatility remains the default.
What Builders and Developers Should Watch
- Site enablement at scale: 18 million square feet means multi-phase pads, redundant roads, and heavy underground for power/cooling. Expect multi-year logistics plans with swing space for laydown and prefab.
- Off-grid complexity: Private generation shifts risk from utilities to the owner/EPC. Long-lead items (GTs, HRSGs, transformers, breaker gear) need early deposits and storage plans.
- Nuclear interfaces: AP1000 is a certified design, but site licensing, QA/QC, and oversight will define the schedule. Teams with nuclear-grade documentation and traceability will have an edge. See design background at the U.S. NRC.
- Cooling strategy: Fermi proposes dry cooling on reactors to cut water use, but the campus still needs significant volumes for data halls and gas plants. Dry cooling is typically less efficient and adds cost; read background from the U.S. EIA.
- Tenant certainty: REIT structure depends on lease-up. Without an anchor and minimum-take commitments, construction financing will stay tight and phased NTPs likely.
- Permitting posture: Texas is fast for power and industrial sites, but local water and community approvals can still slow things down.
Water, Community, and Local Politics
The Ogallala Aquifer is the flashpoint. Fermi secured a 4-1 City Council vote for 2.5 million gallons per day, with room to increase, offering to pay triple market rates. Locals split between economic growth and groundwater protection.
For teams bidding scopes tied to water or thermal reject: budget for air-cooled systems, on-site reuse, blowdown treatment, and sound/heat plume mitigation. Expect public scrutiny on well draws and trucking plans. Early, transparent outreach will save you months later.
Nuclear: Execution or Exposure?
Decades of U.S. experience say: nuclear builds slip without disciplined project controls. Advocates warn that one high-profile failure could set back the whole sector. Fermi's answer is to hire leaders who've delivered reactors overseas and run a parallel program: fast gas now, nuclear later.
Contracting will decide outcomes. Look for EPC wraps with clear risk-sharing, milestone gates tied to procurement, independent QA audits, and schedule buffers for regulatory holds. No hero timelines.
Key Metrics (At a Glance)
- Acreage: 5,800 (Carson County, TX)
- Built area: 18 million sq ft of data centers
- Generation: ~11 GW (gas, solar, batteries, four AP1000 reactors)
- Near-term milestone: First 1 GW gas by end of 2026
- Nuclear target: First reactor power by 2032
- Capex envelope: $60B+ (subject to escalation and contingencies)
- Structure: Public REIT; lease-up dependent
- Tenant status: Anchor deal fell through; ongoing talks
Procurement and Bid Strategy Tips
- Secure slots for turbines, large power transformers, UPS systems, switchgear, and chillers now; align storage and insurance for multi-year lead times.
- Package scopes to isolate nuclear-grade work from conventional plant and data hall trades; avoid cross-contamination of QA requirements.
- Use escalation clauses indexed to steel, copper, and specialized electrical equipment. Protect cash flow with deposit-backed supplier agreements.
- Phase delivery: prioritize gas-plus-first-hall activation to de-risk lease start dates while nuclear progresses through licensing.
- Water: propose hybrid cooling, reclaim, and heat-reuse options to cut draw and win community support.
What to Watch Next
- Signature of an anchor tenant with capacity commitments and term length.
- Financial close on the first 1-2 GW of gas and associated data halls.
- EPC awards for balance-of-plant and site civil packages.
- Final water agreements and monitoring frameworks around the Ogallala.
- Regulatory steps for AP1000 site licensing and any federal loan program participation.
- South Korea/Japan partnership dollars translating to actual contracts, not just MOUs.
Bottom line: Project Matador is the prototype for how mega data centers will get built this decade-off-grid, energy-first, and politically visible. There's real opportunity here for teams that can price risk, secure long-lead gear, and deliver in phases without betting the company on nuclear timelines.
If your team is skilling up for AI-heavy construction workflows, you may find value in curated training paths by job role: Complete AI Training - Courses by Job.
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