(TNS) — Fermi America, a Texas-based nuclear and data center start-up co-founded by former Gov. Rick Perry, did not exist at the start of this year. However, on Wednesday, Fermi surpassed its own targets with an early debut as a public company, reflecting strong Wall Street enthusiasm for AI-related ventures. Its stock closed at $32. 53 per share, 55% above its $21 IPO price, valuing the company at over $19 billion—even though it has no revenue and does not expect any until at least 2026. Spokesperson Cathy Landtroop expressed pride in the IPO performance and affirmed the company’s commitment to developing the world’s largest next-generation private grid to power AI. Dale Klein, a University of Texas at Austin professor and former federal nuclear regulator, noted excitement around AI’s growing electricity demands and opportunities for companies like Fermi, but cautioned that Fermi aims to bring its first nuclear reactor online by 2032, a timeline that raises questions given nuclear’s history of overpromising and underdelivering. Fermi emerged publicly in June with bold plans to build the nation’s largest nuclear power complex and data center campus near Amarillo, on Texas Tech University land. The company sparked additional attention by suggesting its four planned nuclear reactors might be named after former President Donald Trump. Perry emphasized urgency, noting the U. S. lags behind countries like China, which is actively building 22 nuclear reactors to support AI development, whereas America has none. Investors are wagering that tech firms will pay a premium to host AI supercomputers at Fermi’s upcoming data centers. Nuclear energy, attractive for its continuous, carbon-free electricity, appeals to many. Nuclear engineer Nick Touran remarked that while delivery isn’t assured, the influx of capital to Fermi reflects broad belief in the company’s vision. Yet challenges loom. Fermi faces the longstanding issues of the U. S. nuclear industry—cost overruns, delays, and uncertainty.

The company disclosed risks in its SEC filing, including a lack of operating history and no binding tenant contracts, raising doubts about future results. Since inception in mid-January, Fermi reported a net loss of $6. 4 million through June and expects no revenue until it secures tenants and delivers power. Given the long construction timelines for nuclear plants, Fermi plans to first bring 1. 1 gigawatts online by 2026 using primarily natural gas and solar generation—enough for roughly 275, 000 Texas homes. The company warned that significant expenses and losses will continue until its Project Matador near Amarillo becomes commercially viable, which may not happen. CEO Toby Neugebauer expressed confidence in achieving goals, citing recruitment of leaders from successful nuclear projects in China and the UAE. Fermi plans to use Westinghouse AP1000 reactors, a proven technology, unlike less-tested prototypes generating industry buzz. However, the last U. S. AP1000 projects, completed in 2023 in Georgia by Southern Company, were seven years late and $17 billion over budget, costing customers heavily. That Georgia experience complicated nuclear financing, though Touran sees this as an opportunity to apply lessons learned. With utilities unwilling to fund new projects, Fermi’s public offering represents a novel financing approach, filling a void in U. S. nuclear development. “We know the utilities just can’t stomach it at this point, so now there’s a vacuum. So, how do we get it financed?Here’s an answer in Fermi America, ” Touran said. © 2025 the Houston Chronicle. Distributed by Tribune Content Agency, LLC.