Nuclear-powered data center construction on the horizon: Hyundai set to assist in Texas project
In the vast plains of Amarillo, Texas, a groundbreaking project is taking shape. Fermi America, a company supported by former U.S. Energy Secretary Rick Perry and investor Toby Neugebauer, has unveiled plans for a colossal "HyperGrid" data center and advanced energy campus.
This monumental project, estimated to cost approximately $300 billion, aims to generate 11 gigawatts (GW) of power. The power will be sourced from a combination of natural gas, solar energy, and ultimately four Westinghouse AP1000 nuclear reactors.
The nuclear reactors alone are estimated to cost just over $41 billion. This figure is based on an approximate $9,000/kW construction cost and the combined capacity of the reactors. A single AP1000 reactor was estimated at around $6.8 billion two years ago, aligning reasonably with the total $41 billion estimate for all four units.
South Korean industrial magnate Hyundai has been enlisted to support the deployment of up to six gigawatts of nuclear power in the Fermi America project. This includes the construction and energy infrastructure of the four Westinghouse AP1000 reactors, which are planned for Amarillo.
The HyperGrid campus will integrate nuclear, natural gas, solar, and battery storage, with a scale large enough to support AI-driven data centers. The project will cover land, construction, infrastructure, and energy integration on a massive 5,800-acre site near Amarillo, owned by Texas Tech University.
Construction of the first reactor is planned to start in 2026, with a target operational date around 2032. The project is one of the most ambitious and costly nuclear-powered data center developments in the United States.
However, it's important to note that a memorandum of understanding (MoU) has been signed for the project, but there is no guarantee it will be built in its entirety. The exact funding source for one AP1000 reactor, let alone four, in the Fermi America project remains unclear.
The Vogtle Unit 3 and 4 reactors in Waynesboro, Georgia, which use Westinghouse's Gen-3 reactors, took 15 years and more than $36B to complete. Fermi America aims to have a gigawatt of capacity online by the end of 2026.
In summary:
- Four AP1000 nuclear reactors in Amarillo, Texas are estimated to cost $41 billion.
- The total HyperGrid campus, including data centers, multiple energy sources, and a scale of 11 GW of power, is estimated to cost $300 billion.
- Hyundai will support the deployment of approximately four gigawatts of combined-cycle gas generation plants, a gigawatt of solar and battery storage, and two gigawatts of small modular reactors (SMRs) in the Fermi America project.
- The project aims to establish Texas as the US's largest energy and intelligence campus.
- Construction of the first of four Westinghouse AP1000 reactors is set to begin next year in Amarillo.
- The estimated cost for four AP1000 nuclear reactors in Amarillo, Texas, as part of the HyperGrid data center and advanced energy campus, is $41 billion.
- The total cost of the HyperGrid campus, which includes data centers, multiple energy sources, and a scale of 11 GW of power, is estimated to cost $300 billion.
- Hyundai will support the deployment of approximately four gigawatts of combined-cycle gas generation plants, a gigawatt of solar and battery storage, and two gigawatts of small modular reactors (SMRs) in the Fermi America project, aiming to establish Texas as the US's largest energy and intelligence campus.
