U.S. nuclear regulator staff tentatively recommend licensing 4 Fermi reactors in Texas
Key Facts
U.S. Nuclear Regulatory Commission staff tentatively recommended issuing licenses for four nuclear reactors that Fermi America plans to build as part of its Matador project in Texas, according to an official notice published on October 9, 2026. The recommendation was included in the project's draft environmental assessment, with licensing contingent on successful completion of the safety review. The units aim to provide 4 gigawatts of carbon-free baseload electricity directly supporting the Matador complex, according to the project description in an earlier regulatory notice. The regulator's staff said their recommendation was "contingent on successful completion of the safety review." Fermi confirmed in its statement that the final environmental review, safety evaluation and commission decision remain forthcoming steps in the project's progress. The plan includes Westinghouse AP 1000 reactors, according to the company.
Fermi submitted the first part of its combined license application on June 17, 2025, according to the timeline set out by the Nuclear Regulatory Commission in its official notice. The environmental assessment is being prepared under a pilot program that allows the applicant to prepare a draft environmental study under the regulator's supervision. According to the notice published in the Federal Register, the applicant prepares the draft, while the process remains subject to regulatory oversight. The regulator's staff based their preliminary recommendation on their independent environmental review of the project, according to the notice concerning the draft assessment. Their rationale also included an evaluation of the draft submitted by the company, consultations and public comments concerning the project. The proposed reactor site is in Carson County, Texas, adjacent to the U.S. Department of Energy's Pantex facility, according to the regulator's document describing the location of the planned units.
On preparations for the nuclear component, Fermi said its cooperation agreement with Westinghouse includes developing a long-term strategy for deploying reactors at the site. On the commercial side of the Matador project, the company announced a lease with TensorWave, describing it as the project's "first binding customer lease." The initial lease term is 15 years after the final delivery phase begins, according to Fermi's statement on the tenant agreement. The first phase includes approximately 156 megawatts of contracted critical IT capacity, according to the company's filing with the U.S. Securities and Exchange Commission. The agreement also includes expansion rights that could increase the partnership's total capacity to more than 650 megawatts. Fermi said reaching that additional capacity would depend on the exercise of the expansion rights in the contract.
The lease arrangement includes credit support from AMD, beginning once construction is complete and rent becomes payable, according to Fermi's Securities and Exchange Commission filing. The filing described the support as beginning "once construction is complete and rent commences." The detailed description of the chipmaker's obligations links their commencement to the final delivery phase of the leased project. According to Fermi's announced schedule, the company expects phased delivery of the first phase to begin in the fourth quarter of 2027. It expects delivery to be completed in early 2028, according to the same filing outlining the contracted capacity and delivery schedule. The contract places the start of its initial term after the final delivery phase begins, while the filing links credit support to construction completion and rent becoming payable.
In the market, Investing reported on October 9, 2026, that Fermi shares hit a 52-week low of $3.42. The market report cited that share price on the same date as the publication of the regulatory notice concerning the draft environmental assessment. On the company's calendar, its annual shareholders' meeting is scheduled to be held virtually on October 30, 2026, according to the proxy statement filed with the Securities and Exchange Commission. Fermi then plans to announce its third-quarter 2026 results on November 12, 2026, according to the earnings date announcement carried by Investing. The company set 7 a.m. U.S. Eastern time for the release of its financial results for that quarter.
The reactors' regulatory process remains open to public comments on the draft environmental assessment until November 23, 2026, according to the Nuclear Regulatory Commission notice. The regulator invited comments by that date as part of its review of the draft concerning the proposed project. Fermi awaits completion of the final environmental review, along with the safety evaluation and commission decision, according to its statement on licensing progress. Successful completion of the safety review remains a condition of the regulator's staff's preliminary recommendation to proceed toward issuing licenses. Further out, Fermi says it aims to bring the first reactor into operation by 2032, according to the company's statement on developing Matador's nuclear component. The targeted start-up date follows its announced schedule for delivering the first phase to the tenant, beginning in the fourth quarter of 2027 and concluding in early 2028.