Fermi Inc. has signed deals to begin production of four big nuclear-power reactors that would be used for a private data center grid campus in the Texas Panhandle.
Shares rose as much as 9% after the announcement and a slew of buy ratings initiated by Wall Street analysts. The developer, though, doesn’t generate revenue yet and is wading into one of the most complicated and expensive types of power plants to build. The US has built just three reactors this century, including the Vogtle project in Georgia that was completed with significant overruns and delays.
Fermi, the real estate investment trust co-founded by President Donald Trump’s former US Secretary of Energy Rick Perry, tapped Doosan Enerbility to help launch the project, according to a statement Monday. This includes forging production of reactor pressure vessels, steam generators and other critical equipment that have long lead times.
Fermi locked in this “preeminent position” for the Westinghouse AP1000 reactors while separately signing a contract with Hyundai Engineering & Construction to start engineering work.
The statement did not outline the cost of the project.
The ambitions at Fermi underscore the fervor to find gigawatts to feed AI’s quickly growing appetite. The Amarillo, Texas-based company was formed earlier this year and now has a market capitalization of about $14 billion after going public on Oct. 1.
It’ll be costly to resuscitate the large-scale nuclear industry in the US, and Fermi has turned to two South Korean companies, Doosan and Hyundai, to help enable that.
While many hopes for a nuclear renaissance in the US are focused on developing small modular reactors, Fermi’s push into big nuclear isn’t new — but it’s the boldest yet. It will be essential to rebuild the entire supply chain, from workers to construct and operate such a massive project to power equipment amid a global crunch for key items such as transformers.
Constellation Energy Corp. is working to restart the shuttered Three Mile Island plant in Pennsylvania for technology giant Microsoft Inc.
Copyright 2025 Bloomberg.
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