Texas Fermi AI Hub project collapses

The Fermi AI Hub, a planned 17-gigawatt data center in Texas announced in 2025 as America's largest, has collapsed. The project, led by former Texas Governor Rick Perry and backed by Trump allies, was to be powered by small modular nuclear reactors. Gulf and American investors pulled out amid regional conflict and spiraling costs, causing its stock to crash 70% within six months and forcing construction delays until at least late 2027. The failure symbolizes a deepening crisis in the AI industry, where firms are drowning in debt amid a data center 'gold rush' that is driving up electricity prices and sparking public backlash.