Trump’s AI Data Center Project in Texas Faces Collapse Amid Leadership Exodus and Financial Losses

Donald Trump’s ambitious plan to capitalize on the AI data center boom is unraveling before it even begins. Fermi America, the designated “master developer” of the President Donald J. Trump Advanced Energy and Intelligence Campus, is struggling to secure basic operational foundations, including steady revenue and critical cooling infrastructure.

According to Axios, the company has yet to land a single commercial tenant—a near-impossible hurdle for any data center firm in today’s AI-driven market.

The situation has worsened further. A recent filing with the U.S. Securities and Exchange Commission (SEC) revealed that Fermi America’s CEO, Toby Neugebauer, abruptly resigned, leaving the company’s COO and a board member to manage the fallout. Days later, the CFO, Miles Everson, also departed.

In an interview with Axios just one day before his resignation, Neugebauer acknowledged serious challenges but did not disclose his impending exit. He admitted a critical misstep: underestimating the complexity of the supply chain for data center cooling equipment—a system essential for operations. Neugebauer’s background is in venture capital, not computing infrastructure, as noted in his LinkedIn profile, which highlights 28 years in the field.

“I will accept that as a failure,” Neugebauer stated during the interview.

Even more drastic, Neugebauer proposed dissolving the company and selling its assets, a suggestion rejected by remaining executives.

“Given recent changes in leadership… the company firmly believes a sale is not in the best interest of its continued momentum on Project Matador, ability to serve potential tenants, and long-term value creation for shareholders,” Fermi America said in a statement, as reported by Reuters.

Project Matador refers to Fermi’s planned 17-gigawatt data center in Texas, which is severely lacking in tenant interest. The company’s stock has crashed by approximately 71% over the past six months, and shareholders are reeling from mounting losses.

Neugebauer’s concerns appear justified: Fermi America reported a projected full-year loss of nearly $500 million for 2025, with zero revenue in sight. The timing for cutting losses seems overdue.

This turmoil may signal broader trouble for the data center industry. If even a project backed by a U.S. president cannot get off the ground, what does that imply for others in the sector?

Related: Data Centers Causing Huge Temperature Spikes for Miles Around Them, Study Suggests