Texas-Sized AI Data Center Project Hits Turbulence

What was billed as the world’s largest AI data center, a sprawling complex in the Texas Panhandle near the Pantex nuclear plant, is facing serious headwinds. Fermi America, the company behind the project—once called the President Donald J. Trump Advanced Energy and Intelligence Campus—has seen its stock plunge 71% in six months, with nearly $500 million in losses this year and zero revenue to show for it.

CEO Toby Neugebauer, a venture capitalist with no prior experience in computing infrastructure, resigned on April 17, followed by CFO Miles Everson days later. Neugebauer acknowledged in an interview before stepping down that he misjudged supply chain challenges for cooling equipment. The company rejected his proposal to sell outright, stating it would undermine momentum and long-term value.

Fermi America, co-founded by former Texas Governor Rick Perry, launched with grand ambitions in mid-2025. The 5,800-acre site near Amarillo targeted 17 gigawatts of power—nuclear, natural gas, and solar—enough to exceed the peak demand of 15 states. An IPO valued the firm at over $16 billion, and Trump allies backed it with executive orders fast-tracking nuclear permits.

But the fundamentals never held. No anchor tenant signed on. A class-action lawsuit alleges misrepresentation of demand, and short-sellers are circling. Local residents worry about emissions from planned gas plants, which could rival Connecticut’s entire power sector. While Fermi still touts its HyperGrid system and promises first power by 2026, the project’s timeline has slipped, and boardroom turmoil continues.

The broader lesson is clear: even with political backing, AI infrastructure demands execution basics—tenants, cooling, and revenue. Fermi’s stumbles reflect the growing pains of an industry racing to build before it has customers.

Source: Webpronews