The world's largest data center project — backed by Trump allies and bearing his name — is stalled by delays and logistical hurdles that could stop it before it even starts.

• The latest sign of trouble emerged Friday: CEO Toby Neugebauer abruptly departed from his role. That sent the company's shares, which already shed 75% in the last six months, plummeting in aftermarket trading.

Why it matters: Fermi America, co-founded by President Trump's former Energy Secretary Rick Perry, is emerging as a high-profile test of whether the biggest, most ambitious AI infrastructure projects can deliver on their promises.

Behind the scenes: In an interview with Axios on Thursday, Neugebauer defended the project while acknowledging some shortcomings. He gave no indication that his departure was imminent.

• Neugebauer told Axios he may have been naive about how complex these projects are to put together, particularly the cooling systems that are essential to cool the AI chips.
• Pushing back on the line of questioning, he said he may have "misunderstood where the supply chain is" for cooling equipment: "I will accept that as a failure."

The big picture: The problems facing the company include the lack of a publicly confirmed anchor tenant — typically a hyperscaler — which is widely seen as essential to move forward, including on components like the cooling system.

• These hurdles are documented in an independent report by Cleanview shared exclusively with Axios, as well as earnings calls, public filings and comments from company executives. Cleanview is a market intelligence firm that tracks clean energy and data centers.

Friction point: Neugebauer acknowledged to Axios that the project can't move forward without a tenant, though he also said the issue of tenants — or the lack of them — "isn't a problem" for the company.

• A tenant pulled out in December, and investors filed a class-action lawsuit tied to that.

Catch up quick: The project, in the Texas Panhandle, came together rapidly. It was unveiled in June 2025, and the company went public a few months later.

• Also known as Project Matador, the campus is set to be called the President Donald Trump Advanced Energy and Intelligence Campus.
• The company has cleared some key hurdles, including securing an air permit earlier this year.

Stunning stat: The world's largest proposal to date, it spans a space that's half the size of Manhattan and will have three times the power demand of New York City, Neugebauer said at a Semafor event last week.

• It's pitched as producing 17 gigawatts of largely on-site power including natural gas, nuclear power and solar.

The Cleanview report estimates that even if Fermi secured an anchor tenant this month and matched other similarly large data center construction timelines, its first buildings wouldn't come online until May 2027 — about a year later than initially projected.

Zoom in: Satellite images commissioned by Cleanview suggest limited visible progress at the site in recent months, compared to other large-scale projects.

Read the full story

Fermi America's stock has dropped significantly since its IPO last fall, and it slid in after-hours trading Friday upon the news its CEO was abruptly departing.

Why it matters: It reflects growing investor unease over delays and the lack of a confirmed tenant.

Driving the news: "It's clear that there have been some issues with the stock," Neugebauer said on a March 30 earnings call.

• "And as many of my friends and family and all of you all entrusted your capital and being a steward of your capital, I can't overstate how seriously I take it."

Flashback: Fermi's blockbuster IPO last fall underscored the market's enthusiasm for gargantuan AI-era infrastructure. The dismal stock performance since then is a sharp contrast to the broader rally in AI-related energy stocks.

The intrigue: Co-founder Griffin Perry — the son of Rick Perry — reduced his stake by roughly 11 million shares, about a 15% cut, according to an April 15 SEC filing.

What we're watching: The share could take another drop today when the market reacts further to the CEO's departure.

A lot has happened since our last newsletter! Here's the latest news and analysis...

📊 Oil prices surged last night after a weekend of escalation. Crude regained some of Friday's steep drop that followed U.S. and Iranian claims that the Strait of Hormuz would be open — claims that turned out to be premature.

• Why it matters: "The status of the Strait of Hormuz has not changed ... Shippers will hold off on attempting passage due to the potent risk of Iranian attack," analysts with the Eurasia Group, a political risk consultancy, said in a note.
• What we're watching: Potential negotiations in Pakistan tomorrow ahead of the two-week ceasefire expiring.

⛽ Energy Secretary Chris Wright said yesterday that U.S. gasoline prices may not return to low pre-war levels until 2027.

🔋 Chinese trade data shows that its clean tech exports jumped in March, a sign of "rising global demand for alternative energy sources as traditional supplies are roiled by the Iran war," Bloomberg reports.

🚗 EU electric vehicle sales surged last month, according to the trade association E-Mobility Europe.

⛏️ USA Rare Earth this morning announced a $2.8 billion cash and stock deal to acquire the Serra Verde Group, which owns a major rare earth mine in Brazil.

• Why it matters: Rare earths are key to multiple energy technologies, and China currently dominates the market. Serra Verde has a $565M loan agreement with the U.S. International Development Finance Corp.
• Go deeper: Announcement investor deck ... WSJ coverage

♨️ Geothermal developer Fervo Energy announced Friday evening that it's filed with the SEC for a public listing. Go deeper

🌋 Zanskar's project debt deal for geothermal shows how using AI can de-risk investment in the sector. Go deeper

⚛️ Nuclear company X-energy wants up to a $7.5 billion valuation in its planned IPO, the company revealed at the kickoff to its IPO roadshow. Go deeper

💰 Scoop: Mazama Energy is raising $100 million to tap ultra-hot geothermal deposits for electricity. Go deeper

🔥 NanoTech Materials, a developer of thermal insulation and fireproof coatings for buildings, raised a $29.4 million Series A. Go deeper

⚔️ Scoop: Hertha Metals is raising $100 million in Series A funding to expand its low-carbon steel and high-purity iron production. Go deeper

🛢️ The Interior Department said it will hold a June 5 auction for oil drilling rights in Alaska's Arctic National Wildlife Refuge.

• Why it matters: It will be the first ANWR lease sale under the 2025 GOP budget law, which mandates expanded offerings in the region that's thought to hold huge hydrocarbon deposits.
• Friction point: For decades, environmentalists have opposed efforts to allow drilling there, fearing irreversible damage to the ecosystem and sensitive wildlife species.
• The bottom line: It sets up a test of whether the industry has much interest in the refuge.

⚖️ The Supreme Court ruled 8-0 Friday that Louisiana counties' lawsuits against Chevron and other oil companies over coastal damage should be heard in federal courts.

• Catch up quick: It turned on whether Chevron could assert the ability — under the "federal officer removal statute" — to have the case moved from state to federal courts because of WWII refining contracts with the federal government.
• Why it matters: The ruling "could make it easier for federal contractors and other private parties to move lawsuits against them to federal court, delaying proceedings and securing venues they see as more favorable to their arguments," E&E News reports.

👀 The NYT obtained internal memos on the Supreme Court's unusual 2016 decision ruling that blocked President Obama's "clean power plan" without explanation — or traditional briefings or arguments.

• Why it matters: The stay halting the EPA rule a decade ago was a sliding doors moment in U.S. climate policy and, per the NYT, "Legal scholars have called the episode the birth of the modern shadow docket."

That's how much cheaper per mile it is to drive EVs compared to gas-powered cars these days, with most states closer to the high end of the range, per a new analysis.

Why it matters: The recent gas price spike has again widened this longstanding difference that helps make EVs cheaper to own on a long-term basis, the nonprofit Electric Power Research Institute finds.

• But the sticker prices for EVs remain higher than internal combustion models on average, especially now that federal tax credits are gone.