Fermi America and Hyundai plan 11GW nuclear grid for AI expansion

Fermi America and Hyundai Engineering & Construction have signed a partnership to develop what they’re calling the world’s largest private electrical grid—an 11-gigawatt nuclear-powered energy hub designed specifically to meet the massive electricity demands of artificial intelligence infrastructure.

The ambitious Texas-based project represents a significant bet on nuclear power as the solution to AI’s growing energy crisis. As AI models become more sophisticated and data centers proliferate, the technology sector is consuming electricity at unprecedented rates, creating bottlenecks that threaten to slow AI development. This hybrid energy system combines nuclear reactors with natural gas, solar power, grid electricity, and battery storage to create a dedicated power source for AI workloads.

Under their memorandum of understanding, Fermi America and Hyundai E&C will jointly advance project planning, conduct feasibility studies, and handle the complex engineering phases required for nuclear construction. Hyundai brings decades of nuclear construction experience, having built reactors worldwide, while Fermi America focuses on next-generation nuclear development in the United States.

“America doesn’t have time to practice—we need to work with proven partners like Hyundai, who have delivered safe, clean nuclear energy,” said Toby Neugebauer, co-founder of Fermi America.

The timeline is aggressive by nuclear industry standards. Construction is slated to begin in 2026, with the first AP1000 reactor—a standardized pressurized water reactor design—expected to come online by 2032. Fermi America recently submitted its Combined Operating License Application (COLA), a comprehensive regulatory filing required to build nuclear reactors in the United States, which was accepted for review in what the company claims was record time by the Nuclear Regulatory Commission.

Why nuclear power appeals to AI companies

The partnership reflects a broader recognition that artificial intelligence’s energy appetite may require fundamentally different power solutions than traditional data centers. Training large language models and running AI inference at scale requires consistent, high-density power that many existing energy sources struggle to provide reliably.

Always-on reliability

Nuclear power plants operate continuously, generating massive amounts of electricity 24 hours a day, 365 days a year, regardless of weather conditions. This reliability proves crucial for AI data centers that cannot tolerate power interruptions without risking significant computational losses and service disruptions. Unlike solar installations that depend on sunshine or wind farms that require consistent breezes, nuclear reactors maintain steady output regardless of external conditions.

Exceptional energy density

Nuclear fuel delivers extraordinary efficiency compared to other energy sources. A single uranium pellet the size of a fingertip contains as much energy as a ton of coal, allowing nuclear plants to generate enormous amounts of electricity using relatively small physical footprints. This space efficiency becomes increasingly important as AI companies seek dedicated power sources near their data processing facilities.

Carbon-neutral operations

Nuclear power produces virtually no greenhouse gas emissions during electricity generation, making it attractive for technology companies pursuing net-zero carbon commitments. As artificial intelligence workloads continue expanding, nuclear power offers a pathway to meet rising energy demands without proportionally increasing carbon footprints—a critical consideration for companies facing investor and regulatory pressure on climate goals.

Next-generation nuclear technologies

Emerging nuclear technologies promise even greater flexibility for AI applications. Small Modular Reactors (SMRs)—compact nuclear units that can be manufactured in factories and assembled on-site—could potentially be deployed directly adjacent to major data centers or technology campuses. These smaller reactors cost less to build than traditional nuclear plants and can be brought online more quickly, though they still face significant regulatory approval processes.

Industry context and challenges

The Fermi-Hyundai partnership emerges as major technology companies scramble to secure reliable power sources for AI expansion. Microsoft recently signed agreements to restart the Three Mile Island nuclear plant to power its data centers, while Google and Amazon have announced their own nuclear energy initiatives. These moves signal growing recognition that traditional grid electricity may prove insufficient for AI’s long-term power requirements.

However, nuclear projects face substantial hurdles beyond technical complexity. Construction costs often exceed initial estimates, regulatory approval processes can stretch for years, and public acceptance remains mixed in many communities. The 2026 construction timeline, while ambitious, aligns with industry expectations that nuclear power will play an increasingly important role in supporting AI infrastructure through the next decade.

The 11-gigawatt capacity planned for the Texas facility would represent enormous generating capability—roughly equivalent to eight to ten typical nuclear reactors and enough to power several million homes. For AI applications, this scale of dedicated power could support some of the largest computational workloads currently envisioned by technology companies.

The success of this partnership could influence how the broader AI industry approaches its energy challenges, potentially accelerating nuclear power’s role in supporting artificial intelligence development while demonstrating whether private companies can successfully navigate the complex regulatory and financial landscape of nuclear construction.