Fermi America’s Nuclear Gambit: How SMRs and AP1000s Are Powering the 2025 AI Boom

Industry Adoption: How Fermi America is Building a Private Nuclear Grid for AI

Between 2021 and 2024, the concept of using dedicated nuclear power for the rapidly growing artificial intelligence industry was largely theoretical. During this period, Fermi America, a startup led by former U.S. Energy Secretary Rick Perry, laid the conceptual groundwork. The initial strategy focused on a pragmatic solution: leveraging Westinghouse’s proven, large-scale AP1000 reactor—the same technology operational at Plant Vogtle in Georgia—to provide gigawatt-scale, reliable power. This was a deliberate choice to bypass the technological and regulatory risks of unproven Small Modular Reactor (SMR) designs. The company’s first concrete step was a 2022 collaboration with Texas Tech University to secure a land lease, establishing the foundation for its “Advanced Energy and Intelligence Campus.” While Fermi America focused on a proven, large-scale application, its affiliate, Fermi Energia, was exploring the SMR market in Estonia, evaluating multiple vendors like GE Hitachi and NuScale. This highlighted a broader industry trend of technology evaluation, contrasting with Fermi America’s focus on a novel business model for a mature reactor design.

The period from January 2025 to today marks a dramatic inflection point where concept became a heavily capitalized reality. Fermi America exploded onto the public stage with “Project Matador,” a planned $90 billion, 11 GW private “HyperGrid” campus. The strategy evolved from solely focusing on large reactors to a sophisticated dual-track approach. While submitting its formal license application for four AP1000 units, the company also unveiled plans to integrate 2.5 GW of SMR capacity once the technology matures. This shift was validated by staggering financial and commercial momentum. The company raised $683 million in its October 2025 IPO, achieving a valuation of nearly $15 billion. This influx of capital demonstrates immense investor confidence in the nuclear-for-AI thesis. Furthermore, the application of the technology became highly specific: moving from the general idea of powering data centers to building a vertically integrated campus to power up to 18 million square feet of hyperscale AI facilities behind the meter. A partnership to develop a High-Assay Low-Enriched Uranium (HALEU) facility with ASP Isotopes shows adoption is moving beyond just power generation to securing the entire next-generation fuel cycle, signaling a long-term commitment to advanced nuclear, including SMRs.

Table: Fermi America’s Capitalization and Project Financing

Table: Fermi America and Affiliates’ Strategic Nuclear Partnerships

Geography: Why Texas is the Epicenter of Fermi America’s Nuclear-AI Strategy

Between 2021 and 2024, the geographic focus for advanced nuclear deployment was globally diffuse. Activity was centered in Estonia, where Fermi Energia engaged in a multinational technology evaluation, forming partnerships with firms from the U.S. (GE Hitachi, NuScale), Canada (Laurentis Energy Partners), and Sweden (Vattenfall). This represented a widespread, exploratory phase to determine SMR viability for a national grid. In the U.S., Fermi America’s activity was nascent and concentrated solely in Texas, marked by its conceptual partnership with Texas Tech University.

From 2025 onward, the geographic landscape has consolidated dramatically around a single point of execution. Texas has emerged as the undisputed global epicenter for the convergence of nuclear power and AI infrastructure, driven entirely by Fermi America’s Project Matador near Amarillo. All major commercial activities—land acquisition, water rights, regulatory filings, and planned construction—are anchored in this location, leveraging the state’s favorable regulatory environment. However, the project’s supply chain is international. Key manufacturing and engineering partnerships have been established with industrial powerhouses in South Korea (Doosan Enerbility, Hyundai E&C) and Germany (Siemens Energy), transforming a Texas-based project into a global undertaking. The plan to co-locate a HALEU enrichment facility in Texas further solidifies the state’s role as a vertically integrated hub for next-generation nuclear energy. The Estonian SMR project remains a key European testbed, providing valuable data and experience for Fermi’s future ambitions in Texas.

Technology Maturity: De-Risking Nuclear for AI with Fermi America’s Phased Approach

In the 2021–2024 period, the technologies in play were at different stages of maturity and application. For SMRs, the technology was largely in a pre-commercial, competitive evaluation phase. Fermi Energia’s process of selecting the GE Hitachi BWRX-300 from a field of candidates exemplifies this; the technology was chosen but remained pre-construction and pre-licensing in Estonia. Conversely, Fermi America’s chosen technology, the Westinghouse AP1000 reactor, was already commercially operational at Plant Vogtle. However, its application in a private, behind-the-meter grid for AI data centers was entirely novel and conceptual. The market was thus characterized by a maturing SMR technology seeking its first deployment and a mature large-scale technology seeking a new business model.

In 2025, Fermi America’s strategy validated both technologies through a clear, phased commercialization plan. The AP1000 has moved from a conceptual application to a formal, large-scale project. The submission of the Combined Operating License Application (COLA) to the NRC in June 2025 and the subsequent signing of manufacturing deals with Doosan and Hyundai have advanced the AP1000 from a blueprint to the formal regulatory and procurement phase. This de-risks the project’s initial revenue stream. Simultaneously, SMRs have graduated from the evaluation stage to a planned, gigawatt-scale commercial deployment. The explicit inclusion of a 2.5 GW SMR component in Project Matador is a powerful market signal. The most significant leap in technological maturity is the plan to develop a HALEU production facility. This moves a critical enabling technology from the research stage toward commercial-scale production, demonstrating market confidence that advanced reactors and SMRs requiring this fuel will be commercially viable within the project’s 2038 timeline.

Table: SWOT Analysis: Fermi America’s Nuclear-for-AI Strategy

Forward-Looking Insights and Summary

The flurry of activity in 2025 signals that Fermi America has successfully transitioned from an audacious concept to arguably the most credible, large-scale nuclear project in the Western world. The year ahead will be defined by execution and the transition from paper to physical progress. Market actors should watch for several key signals. First, progress on the Nuclear Regulatory Commission’s review of the AP1000 Combined Operating License Application (COLA) will be the primary pacing item for the project’s timeline. Second, the planned 2026 construction start will be a major milestone, likely beginning with site preparation and infrastructure for the natural gas turbines. Third, any announcements of anchor tenants for the AI data centers will be critical in validating commercial demand and securing further project financing. Finally, the selection of a specific SMR technology vendor for the planned 2.5 GW deployment will be a powerful signal indicating which SMR designs are winning the race to commercial scale.

Fermi America’s strategy of leading with proven large-scale reactors while paving the way for SMRs and securing the HALEU fuel chain represents a comprehensive, de-risked approach to solving AI’s existential power problem. Success would not just validate the company’s $15 billion valuation; it would create an entirely new paradigm for how critical 21st-century digital infrastructure is powered. For energy strategists and investors tracking the convergence of AI and clean energy, understanding the intricate web of partnerships and technology bets made by companies like Fermi America is crucial. To gain deeper, real-time insights into this evolving market and build your own competitive analysis, explore a research platform like Enki.

Frequently Asked Questions

What is Fermi America’s “Project Matador”?
Project Matador is Fermi America’s planned $90 billion, 11-gigawatt private energy and data center campus located near Amarillo, Texas. Its primary goal is to provide reliable, carbon-free nuclear power for a massive, 18 million-square-foot campus of hyperscale AI facilities, creating a vertically integrated “HyperGrid”.

Why is Fermi America using both large AP1000 reactors and smaller SMRs?
This is a phased, dual-track strategy to de-risk the project. Fermi America is starting with four Westinghouse AP1000 reactors—a proven, large-scale technology already operational in the U.S.—to provide initial baseload power. It then plans to integrate 2.5 GW of Small Modular Reactors (SMRs) once that technology has matured, allowing the company to build its initial capacity on a proven design while paving the way for next-generation nuclear.

How is this massive $90 billion project being funded?
The project is financed through a combination of public and private capital. In 2025, Fermi America secured $350 million in pre-IPO financing and then raised an additional $683 million through a successful Initial Public Offering (IPO) that valued the company at nearly $15 billion. The total project cost of over $90 billion will be financed over its lifetime (through 2038), likely involving future financing rounds, debt, and potential U.S. Department of Energy (DOE) loans.

What is HALEU and why is it a key part of Fermi America’s strategy?
HALEU stands for High-Assay Low-Enriched Uranium. It is an advanced nuclear fuel required by many next-generation reactor designs, including some SMRs. By partnering with ASP Isotopes to develop a HALEU enrichment facility, Fermi America is vertically integrating its supply chain. This strategic move ensures a secure fuel source for its future SMRs, reduces reliance on external suppliers, and positions the company as a leader in the entire advanced nuclear ecosystem, not just power generation.

What are the biggest risks facing the Fermi America project?
The primary risks are related to execution and timelines. Key challenges include navigating the multi-year Nuclear Regulatory Commission (NRC) licensing process for a new site, managing potential construction delays and cost overruns (as seen in other large nuclear projects), and avoiding global supply chain bottlenecks for critical components. The project’s long-term success also depends on SMR technology maturing on schedule and within budget.