In a bold move to address the surging energy demands of artificial intelligence (AI), Fermi America has partnered with South Korea’s Hyundai Engineering & Construction (E&C) to develop the HyperGrid, a groundbreaking 5,769-acre energy and AI campus near Amarillo, Texas. This ambitious project, backed by former Texas Governor and U.S. Energy Secretary Rick Perry and investor Toby Neugebauer, aims to deliver up to 11 gigawatts (GW) of power by integrating nuclear, natural gas, solar, and battery storage, positioning Texas as a global leader in AI infrastructure. With construction set to begin in 2026, the HyperGrid could redefine how data centers meet the energy needs of next-generation computing.
A Vision for the Future: The HyperGrid Campus
The HyperGrid, developed in collaboration with the Texas Tech University System, is designed to be the world’s largest private power grid, delivering behind-the-meter power to hyperscale data centers. The campus will feature four Westinghouse AP1000 nuclear reactors, each capable of generating over 1 GW, alongside 4 GW of combined-cycle natural gas turbines, 600 MW of solar arrays, and battery storage. Located near the Pantex nuclear weapons facility in the Texas Panhandle, the project leverages the region’s abundant natural gas reserves and high solar irradiance to create a resilient, hybrid energy ecosystem. Geotechnical work has already begun, with 1 GW of capacity expected online by the end of 2026, primarily from gas turbines, and the first nuclear reactor targeted for operation by 2032.
[](https://www.theregister.com/2025/08/04/fermi_america_nuclear_datacenter/)[](https://www.datacenterdynamics.com/en/news/hyundai-to-deliver-nuclear-power-to-fermi-americas-11gw-ai-campus-in-amarillo-texas/)Hyundai E&C’s Proven Expertise
Hyundai E&C brings a wealth of experience to the HyperGrid, having successfully constructed 18 nuclear reactors in South Korea and four at the Barakah Nuclear Power Plant in the United Arab Emirates, a project delivered on time and within budget. With two reactors under construction in South Korea and two in the engineering phase in Bulgaria, Hyundai’s track record makes it a critical partner. The memorandum of understanding (MoU) signed in Seoul outlines joint planning, front-end engineering design (FEED), and an engineering, procurement, and construction (EPC) contract to be finalized by year-end 2025. “We need proven partners like Hyundai, who have a successful track record of planning and building safe, clean, new nuclear energy,” said Fermi co-founder Toby Neugebauer.
[](https://www.theregister.com/2025/08/04/fermi_america_nuclear_datacenter/)[](https://www.prnewswire.com/news-releases/fermi-america-to-partner-with-hyundai-engineering--construction-to-develop-nuclear-component-of-worlds-largest-first-of-its-kind-private-grid-for-next-generation-ai-302517759.html)Meeting AI’s Insatiable Energy Demand
The HyperGrid responds to a structural shift in U.S. energy consumption, with AI-driven data centers, reindustrialization, and electrification pushing annual electricity demand growth above 3% through 2040, according to a 2025 McKinsey energy study. Data centers alone could double global electricity demand by 2026, straining grids like PJM Interconnection, which saw capacity prices spike to $329.17/MW-day in its 2026/2027 auction. By generating power on-site, HyperGrid sidesteps transmission bottlenecks, offering hyperscalers a stable, cost-effective energy supply. Fermi has acquired 600 MW of gas generators, including Siemens Energy SGT800 turbines and refurbished GE Frame 6B units, which are 30% cleaner than the current grid and equipped with emissions-reducing technologies.
[](https://www.theregister.com/2025/08/04/fermi_america_nuclear_datacenter/)[](https://www.datacenterdynamics.com/en/news/fermi-america-acquires-600mw-of-gas-turbines-for-11gw-ai-mega-campus-in-amarillo-texas/)[](https://www.rudebaguette.com/en/2025/08/ai-data-farms-to-run-on-nuclear-power-in-us-first-hypergrid-a-dangerous-gamble-or-the-future-of-tech/)Challenges and Opportunities
While ambitious, the HyperGrid faces significant hurdles. A single AP1000 reactor was estimated at $6.8 billion in 2023, but cost overruns and delays are common, as seen with the Vogtle plant in Georgia, which cost $36 billion and took 15 years to complete. Fermi’s target of completing four reactors by 2032 is aggressive, even with Hyundai’s expertise and a streamlined Nuclear Regulatory Commission (NRC) review, which accepted Fermi’s Combined Operating License Application on June 17, 2025. Financing remains undisclosed, though Fermi is seeking funds from Texas’ $350 million nuclear energy fund and engaging hyperscalers like Amazon and Microsoft, which are investing heavily in AI infrastructure.
[](https://www.theregister.com/2025/08/04/fermi_america_nuclear_datacenter/)[](https://www.washingtonpost.com/business/2025/06/26/nuclear-artificial-intelligence-datacenters-trump/)[](https://www.houstonchronicle.com/business/energy/article/rick-perry-nuclear-power-trump-20397370.php)The project also explores small modular reactors (SMRs) for up to 2.5 GW, though only NuScale’s design is currently NRC-approved. Water usage, a concern in the drought-prone Panhandle, will be mitigated through closed-loop cooling systems, air-cooled condensers, and non-potable water sources, with solar-covered retention ponds to reduce evaporation. These innovations align with Fermi’s goal of creating the “cleanest, greenest grid on the planet.”
[](https://www.amarillo.com/story/news/2025/07/10/fermi-300b-ai-campus-brings-jobs-clean-energy-to-amarillo/84509082007/)Economic and Strategic Impact
The HyperGrid is poised to transform Amarillo into a global AI hub, creating thousands of jobs and fostering academic partnerships through Texas Tech. The project’s $300 billion investment could generate a $19.2 billion economic impact, similar to the Texas Tech University System’s statewide contribution. By combining nuclear, gas, and renewables, HyperGrid offers a model for energy-secure AI campuses, positioning the U.S. to compete with China, which initiated 94.5 GW of coal capacity and operates 58 nuclear reactors in 2024. “The Chinese are building 22 nuclear reactors today to power the future of AI. America has none,” said Rick Perry, emphasizing the urgency of the project.
[](https://www.chron.com/news/houston-texas/article/nuclear-data-tech-energy-fermi-20399632.php)[](https://www.amarillo.com/story/news/2025/07/10/fermi-300b-ai-campus-brings-jobs-clean-energy-to-amarillo/84509082007/)Looking Ahead
The HyperGrid represents a bold step toward integrating nuclear power with AI infrastructure, addressing the energy bottleneck threatening America’s technological dominance. If successful, it could serve as a blueprint for future projects, reviving U.S. nuclear development dormant since the 1970s. However, its success hinges on overcoming regulatory, financial, and logistical challenges. As Fermi and Hyundai refine their plans, the HyperGrid could redefine how the U.S. powers the AI revolution, ensuring a reliable, sustainable energy future.
[](https://www.webpronews.com/fermi-america-hyundai-partner-for-5gw-nuclear-grid-to-power-ai-in-texas/)