Fermi Inc., a new player in the energy sector, has announced plans to build four large nuclear reactors in the Texas Panhandle. The reactors will power a private data center campus, aiming to support the growing demand for energy from technologies like artificial intelligence. This marks a bold move in an industry that has seen few new reactors built in the U.S. over the past two decades.
The company’s shares jumped nearly 9% after the news, and several Wall Street analysts quickly recommended buying the stock. Fermi went public just this year and has a market value of around $14 billion. Despite the excitement, the company is still in its early stages and does not yet generate any revenue. Building large nuclear plants is an expensive and difficult task, with recent projects like the Vogtle reactors in Georgia facing costly delays.
Fermi is working with South Korean firms Doosan Enerbility and Hyundai Engineering & Construction. Doosan will help produce important parts like reactor pressure vessels and steam generators, while Hyundai will handle engineering work. The nuclear reactors will be based on Westinghouse’s AP1000 design, a model that Fermi has secured exclusive rights to use in this project.
The announcement highlights the rush to add clean and powerful energy sources to meet the huge electricity needs of data centers and AI technology. While smaller modular reactors get a lot of attention, Fermi’s choice to focus on large reactors is unusual and requires rebuilding a struggling supply chain, including specialized manufacturing and skilled workers.
Notably, the U.S. has only completed three new nuclear reactors since 2000, with the Vogtle project being the most recent and marked by cost spikes and delays. Meanwhile, other efforts like Constellation Energy’s plans to restart the Three Mile Island plant in Pennsylvania for Microsoft show a growing interest in nuclear power to meet future energy needs.
Fermi has not shared details about the estimated cost of this project, but it’s clear that reviving the large-scale nuclear industry in America will be an expensive and challenging journey. Still, with strong partnerships and big ambitions, this Texas-based company is stepping forward to help fuel the future of energy for a data-driven world.