TEXAS Connections

In the Lone Star State, one thing just leads to another.

It’s true: In Texas everything seems linked to the next thing, undergirded by local and state policies and continuing in-migration of individuals and companies. How well is the economy cooking? In August Governor Greg Abbott reported the state had reached a new record for total Texans working (including self-employed) at 15,213,700 and had added 232,500 jobs over the preceding 12 months.

Known as the Fermi America HyperGrid AI campus, the project is being built on a 5,800-acre site owned by Texas Tech near Amarillo and close to the DOE’s Pantex Nuclear Weapons Facility, which has served as America’s primary plant for assembling the U.S. nuclear arsenal since 1951.

But it’s not a nuclear arms race that interests Perry. It’s a race with China to establish global supremacy in AI hyperscale data centers.

“The Chinese are building 22 nuclear reactors today,” Perry said at the June 26 project announcement. “We’re behind, and it’s all hands on deck. President Trump’s first executive order spoke to the energy issue and how we must continue to make America energy dominant. No one does energy better than Texas.”

Perry plans to use the company he founded to do it. Fermi America is an energy development firm whose goal is to power the future of AI. To accomplish that, Fermi has teamed up with Texas Tech to develop an 11-gigawatt (GW) data center campus with 18 million sq. ft. of AI infrastructure in the middle of the High Plains region of the Texas Panhandle. If successful, HyperGrid would be the world’s largest advanced-energy and AI campus.

Perry has said that the project will draw 6 GW of power from on-site nuclear energy generation that will be developed by Hyundai Engineering & Construction. The remaining 5 GW, he says, will come from natural gas, solar energy and battery power. Fermi has already signed agreements to acquire 600 MW of gas turbines to support the initial data center operations, which the company says will start by the end of 2026.

Fermi plans to develop four 1-GW nuclear reactors which are currently under review by the Nuclear Regulatory Commission. In August Fermi announced it is partnering with Westinghouse to finalize the overall project application for the four AP1000 nuclear plants.

Located just off U.S. Highway 60 between the cities of Amarillo and Panhandle, HyperGrid would be the largest project ever to come to Carson County, which has a population of 6,002 people. Nearby Amarillo has 205,000.

Texas Tech Chancellor Tedd L. Mitchell says his university is an enthusiastic partner that embraces the opportunity to host “this historic endeavor.”

“The Texas Tech University System and Texas Tech University own the property and have entered into a ground lease agreement with Fermi America, which is managing the development project,” Mitchell says. “We take our role as responsible stewards of the land seriously and are grateful for this visionary partnership that will encourage long-term growth and sustainability and address important needs of our region, state and nation.”

He says the project will open up new academic and research opportunities for faculty and students and lead to new internships, workforce training programs and ultimately employment for many TTU graduates across the state. “This project intends to include the construction of an academic and research facility featuring office, classroom and conference spaces,” he notes.

When asked why Fermi chose this site in remote northern Texas, Mitchell said that DOE had recently identified the property owned by TTU as one of 16 sites suitable nationwide for potential data center and energy infrastructure development.

“The Texas Tech University System was approached by Fermi America regarding entering into a ground lease agreement for the development project,” he wrote in an email response to a question from Site Selection. “TTU is contributing to this project solely as the landholder.”

Texas Gov. Greg Abbott paved the way for the deal by signing HB 14 into law during the most recent legislative session. The bill creates the Texas Advanced Nuclear Energy Office and invests $350 million into revolutionizing the nuclear industry in Texas. His press secretary Andrew Mahaleris told Site Selection that “Texas is the energy capital of the world, and we stand ready to lead a nuclear power renaissance in the U.S.”

Fermi leaders have done this elsewhere. A spokesperson for the company, which has $1.3 billion in assets under management, said the firm has “a proven leadership team in nuclear experts who have a successful track record of bringing AP1000 projects online in China and Abu Dhabi on time and in budget.”

As for the Texas site, the spokesperson says, “The campus itself is strategically situated on critical natural resources, including one of the nation’s largest natural gas fields; several of the country’s largest gas pipelines; prime solar resources; the largest repository of helium for next-generation cooling; and the nation’s top-tier fiber infrastructure.”

Proximity to the Anadarko Basin, the largest known natural gas deposit in North America, makes the project possible. Fermi executives say they hope to activate 1 GW of natural gas-sourced power at the site by late next year. Meanwhile, in August, Fermi America announced it had signed an MOU with ASP Isotopes Inc. and its subsidiary Quantum Leap Energy LLC (QLE) to explore the development of a High Assay Low Enriched Uranium (HALEU) enrichment facility at the Carson County site.

What sets HyperGrid apart from other AI hubs, the Fermi spokesperson says, is that “unlike other projects that are reliant on the nation’s current grid energy system, Fermi is a behind-the-meter private grid, giving Texas the energy it needs to continue its growth and innovation trajectory, without taking power away from our neighbors and small businesses.”

Fermi is not the only entity planning massive AI data centers in Texas. Energy Abundance plans to construct a giant AI complex on 50,000 acres near Laredo; and Stargate is a planned $500 billion project currently underway in Abilene in West Texas.

The data center arms race is only just beginning, according to real estate forecaster Newmark. “Cloud capex for top hyperscalers has grown by 30% CAGR over the last five years,” a recent Newmark report states. “AI’s impact on the data center industry is still in the very early innings. On a macro scale, data center demand in the U.S. is expected to reach 35 GW by 2030, up from 17 GW in 2022.” By 2030, the report notes, hyperscalers will exceed $1 trillion in new investment into data centers.

According to the Conway Projects Database, nearly one-fourth of all new data centers in the U.S. since the start of 2020 have occurred in Texas. Some 600 new data centers have been announced in the U.S. during the last half-decade. Texas leads all states with 140.

Globally, 300 new hyperscale data center facilities have been launched over the last two years, with 39% of them landing in the U.S., per Statista. China is No. 2, followed by Japan. — Ron Starner

Texas Adds to Energy Portfolio
A stalwart energy leader, Texas is known for its strong holdings in natural gas reserves and renewable energy options like wind, solar and battery storage. In a July 2025 analysis, the U.S. Energy Information Administration (EIA) predicted that U.S. retail electricity sales to ultimate customers or end-users will grow at an annual rate of 2.2% in 2025 and 2026, compared with an average growth of 0.8% recorded between 2020 and 2024. The EIA forecasts rapid electricity demand growth for Texas and several mid-Atlantic states — and industry is not slowing down any time soon.

Xcel Energy, a major U.S. electricity and gas company with operations in eight Western and Midwestern states, recently announced its intent to expand its energy portfolio in Texas and New Mexico to meet soaring electricity demands. The addition of 17 new generation projects will add 5,168 megawatts (MW) of capacity by 2030, with the utility stating its expectations that consumer demand in this area will grow by more than 40% by that year. This expansion will include 3,200 MW of dispatchable generation and energy storage and 1,968 MW of wind and solar. Growing population numbers, industrial expansion and increased electrification were noted as drivers of electricity demand.

New requirements set by Southwest Power Pool, which manages the electric grid and wholesale power market for the central U.S. that includes parts of north Texas and eastern New Mexico, have further put pressure on utilities to add capacity to meet increasing seasonal demand.

Xcel invited proposals in 2024 for new power projects comprising any technology, resulting in a diversity of energy solutions that include wind, solar, battery storage and gas power. The projects will be built and owned by different entities, some owned by Xcel Energy or built by developers and sold back to the utility. There are also plans to extend the lives of existing natural gas facilities at Maddox power station in New Mexico and Plant X and Nichols Generating Station in Texas.

The portfolio is in line with Xcel Energy’s broader five-year investment plan announced in October 2024, with goals to modernize and increase the area’s energy infrastructure. An economic impact of $5 billion over five years is projected in New Mexico, and the expansion is expected to meet growing demand in the Panhandle and other high-growth areas. Xcel Energy is seeking approval of these projects from state regulators in the second half of 2025. The company is also planning on issuing another request for proposals from developers for future projects expected to be operational by 2032.

Enbridge, a multinational pipeline and energy company headquartered in Calgary, Alberta, Canada, is set to invest $900 million in a 600-MW Texas solar project, Clear Fork, near San Antonio. Meta Platforms is contracted to purchase 100% of the project’s renewable output to support its data center operations in the state.

“We are thrilled to partner with Enbridge to bring new renewable energy to Texas and help support our operations with 100% clean energy,” said Urvi Parekh, head of global energy at Meta, in an Enbridge press release. Clear Fork is expected to begin operations in 2027.

“Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations,” said Matthew Akman, executive vice president, corporate strategy, & president, power at Enbridge, in a company press release.

Enbridge has $2 billion approved in pending energy projects, with strong market results in the second financial quarter of the year. The new suite of projects will support power demands for data centers, industrial expansion and liquefied natural gas (LNG) markets. The company also has a $30 billion project backlog that places it in an advantageous position to capture more market share in these sectors.

Houston-based company NRG Energy Inc. was approved to receive up to $216 million in state loans from the Public Utility Commission of Texas through the Texas Energy Fund (TEF) Loan Program to add two new natural gas units to its T.H. Wharton Plant in northwestern Houston. The addition is expected to generate 456 MW of power for the metro area and be online in summer 2026.

NRG has two additional projects at its Cedar Bayou and Greens Bayou sites that are proceeding through the due diligence process under the TEF. According to a company press release, the new NRG TEF projects are expected to bring over 1.5 gigawatts (GW) of natural gas-powered generation to the state by 2028. — Kelly Barraza

Flying Toward the Future
Game-changing technological collaborations don’t take place over Wi-Fi-supported video calls or by email. They’re best developed in dedicated space that evokes innovation.

In south-central Texas, Port San Antonio has been in the midst of growth since the late 1990s, becoming a hotspot for aerospace, defense, cybersecurity, logistics and manufacturing technology exploration for budding startups and industry-leading companies such as Boeing, Chromalloy and StandardAero. Over the past seven years, the 1,900-acre Tech Port landed on the radar of the likes of CNF Technologies, IPSecure, Leidos and Northrop Grumman for new operations.

This momentum didn’t take place without international notice, landing the Port “Outstanding Innovation District” status from the Association of University Research Parks in 2024. The port’s $9 billion annual regional economic impact is on the rise, especially with assets such as the Boeing Center at Tech Port, which just rang in its third year of operations and has drawn over 500,000 visitors to the facility.

Today, more than 80 tenants and 19,000 employees have secured their place on campus, activity that has led to about 97% of the Port’s 10 million sq. ft. of commercial and industrial space to be occupied. Luckily, there is a bold solution in the works.

“The campus is tremendously important because it creates an opportunity for the very deep silos to interact with each other,” says Port San Antonio CEO Jim Perschbach. “When you’re trying to incorporate new technologies, talents and tools into existing legacy platforms, you can’t do that without the ability to have proximity and collaboration.”

The success found in the earlier office buildings, and decreasing vacancy, drove Perschbach to explore new site development. He wasn’t interested in delivering fresh office space that didn’t speak to the novelty of talent home to the region. So he brought in Pelli Clarke & Partners’ Bill Butler, who leads design and development of large-scale cultural projects, to begin developing what is now known as the Innovation Tower. A $275 million investment will introduce a 300,000-sq.-ft., 11-story futuristic winged office tower that aims to redefine how government, startup and commercial companies get to work.

“You look at any skyline in any city, they always develop things that become the symbol of what they are and what they aspire to be. That’s what the tower is going to accomplish for us.” he says. “With this tower, what we’re trying to say is to the people in the communities that are immediately around us — to the people of San Antonio — is that this is a symbol of the type of work that is being done by your friends, neighbors and family right here in the city.”

Butler says Port San Antonio came to him with incredible ambition rooted in the idea of transformation for the campus and the city. Taking notice of the firm’s work in Austin constructing Google’s new HQ that sits alongside Lady Bird Lake and Shoal Creek, Perschbach saw the boundary-breaking aerodynamic design of the swooping sail structure Butler produced and wasted no time connecting.

“We initially went into the first interview with a very conservative design which they seemed to like,” Butler says. “After that presentation we did a tour of the campus, going through all the buildings, which are quite phenomenal. It was in that moment I actually apologized for the design we showed an hour prior, saying ‘there’s no way this building will meet the aspiration, let alone the sense of innovation you desire.’ I said if I had to do it all over, I’d do something completely different.”

Two weeks later, Butler presented three new concepts, each structurally daring, image-dynamic and radically different from the first design. The third option stood out to the Port team, which noted the shape channels aspirational flight, building upon the campus’ aerospace heritage as it was once home to Kelly Air Force Base.

The building’s shape is best compared to that of a pear inside, as office space begins small on bottom floors, increasing in size with each level. The master plan allows for flexibility of the building’s internal layout, opening opportunity to move walls or interconnect floors as needed. Perschbach says the design allows for companies to innovate traditional operations, giving the example of those requiring classified or secured space, like a vaulted room, which are typically operating out of bleak, one-story warehouses with no windows.

“In a building like this you can have that secure room in the middle because the floor is so big and when you walk out of it you’ve got floor-to-ceiling windows, balconies and ability to have a nicer lifestyle,” he says. “From a recruiting and retention standpoint, that’s important and gives us opportunity to build in things designed around human performance and factors.”

In March, the Port San Antonio Board of Directors approved $7.5 million in funding to begin advancing the project from its preliminary phase into finalizing design plans, budget and schedule. Pelli Clarke & Partners are deep into design development with engineers to assess the realities of construction. The team is on track to have all design documentation complete by the end of the year with a groundbreaking anticipated by mid-2026.

“Inspiration really doesn’t come from convention, but the kind of limitless ambition that the Board has in its vision for this campus, which is ultimately going to try and synthesize creativity and a sense of community,” says Butler.

More to Come
Beyond the arrival of the Innovation Tower, Port San Antonio’s future plans range from a 90,000-sq.-ft. child development center with a 900-person capacity, a fitness center, a grocery store and retail center and an on-site hotel to a Joint Activity Cyber Center to promote private-public partnerships, a potential military campus, a vertiport and temporary military housing.

The Port has already begun work on the nation’s first purpose-built vertiport which will soon start laying asphalt for its taxiway. In addition, almost 50 acres have been cleared to construct a new consolidated air service facility, also serving as space for fixed-base operations for traditional aircraft. Exploration and adoption of advanced air mobility (AAM) is a natural fit for the region, and this site will aim to bring industry, research and government partners together to develop and test innovative air transport technology, including “air taxis” (otherwise known as electric vertical take-off and landing vehicles or eVTOLs) and unmanned aerial systems.

A shared major airfield with the U.S. Air Force, in addition to owning 1,900 acres of commercial, industrial and residential space, provides the Port the opportunity to develop and test new AAM technologies in a controlled environment without interfering with commercial or private aircraft. Several proposed flight paths have been identified throughout San Antonio that could connect the campus to University Hospital, the Texas A&M University-San Antonio campus, the Austin Executive Airport and the Kel-Lac Transit Center.

Referencing recent flooding in the region, Perschbach notes that these AAM systems would be vital in delivering swift, local response for rescue, food or medicine in times of natural disaster. On the other hand, discovering effective ways to integrate eVTOLs into daily life could help mitigate challenges with traffic congestion, while UAS aircraft could revolutionize everyday package delivery.

“It will allow universities and the private sector, the FAA or DoD, to develop and finalize these new technologies,” he says. “Think of it as a walled garden where you start to develop these technologies, port them over and transition them. We think it’s going to do a lot for us, but also for the world going forward.” — Alexis Elmore