A billionaire leading a massive AI data center project in Texas has pushed back against claims that he had a “loud and belligerent” clash with a Trump administration official over the project’s funding.
According to Politico, the reported incident took place on March 17 at Nvidia’s GTC AI conference in San Jose and involved Fermi America CEO Toby Neugebauer and U.S. Commerce Secretary Howard Lutnick. An unnamed witness, along with two additional anonymous sources, said the two men argued over the project.
The disagreement allegedly began when Neugebauer raised the issue of South Korean investment in the $60 billion data center planned for Carson County, Texas. The witness claimed Neugebauer told Lutnick that people believed he was blocking the project, to which Lutnick responded that he was unaware of what Neugebauer meant.
Neugebauer later disputed the portrayal of the exchange as heated, describing it instead as a straightforward discussion about what he sees as obstacles created by Lutnick to the proposed Donald J. Trump Advanced Energy and Intelligence Campus, known as Project Matador. However, it remains unclear what specific role, if any, Lutnick or the Commerce Department played in slowing the project.
The tension comes amid broader efforts to attract South Korean investment into the U.S. economy. Lutnick had previously announced a $350 billion investment from South Korea, and Neugebauer has expressed interest in directing some of those funds toward his initiative.
In his statement, Neugebauer said he emphasized that his project is the only one ready to move forward immediately with Korean partners and expressed frustration over delays. While some accounts suggested security stepped in to separate the two men, Neugebauer denied this, saying he was simply redirected to Lutnick’s staff.
He also argued that political considerations should not interfere with securing a deal that would benefit the United States, though he did not elaborate on the specifics of the disagreement.
Neither Fermi America nor the Commerce Department responded to requests for comment.
Neugebauer, who has a background in finance and energy and is the son of former Congressman Randy Neugebauer, co-founded Fermi America in 2025 with former Texas Governor and Energy Secretary Rick Perry. The company’s flagship effort, Project Matador, aims to build a large-scale, low-carbon energy system capable of supporting advanced AI infrastructure.
The project is expected to combine natural gas, nuclear, solar, grid power, and battery storage to deliver reliable energy for high-demand computing operations. Fermi America has also partnered with South Korean firms on nuclear energy components.
As AI infrastructure expands rapidly, data centers are consuming an increasing share of U.S. electricity—about 4.4% in 2023, with projections rising as high as 12% by 2028. This surge has sparked concerns among local residents about higher energy costs, with some even declining lucrative offers from tech companies seeking land for new facilities.
