Amarillo, Texas – Fermi America, the company developing a massive data center and power complex in the Texas Panhandle, has begun receiving its first shipments of natural gas turbines from Siemens Energy. The delivery marks an initial step toward the company’s ambitious goal of installing 1.1 gigawatts (GW) of power generation capacity this year, ultimately scaling to 11 GW from a mix of natural gas, solar, wind, and nuclear sources.
The initial delivery consists of six gas-fired turbines, ordered in September, with individual ratings ranging from 50 to 62 megawatts (MW). These turbines are expected to contribute approximately one-third of the 1.1 GW of power generation Fermi intends to bring online in .
Beyond the Siemens turbines, Fermi has also acquired three secondary market General Electric industrial gas turbines, along with a paired steam turbine. This equipment, previously used in a heavy industrial operation in New Jersey, is undergoing refurbishment. Combined with an additional 86 MW expected from Xcel Energy subsidiary Southwestern Public Service Company by January, these acquisitions will contribute around 600 MW of power by the end of the year.
The project, a collaboration between Fermi America and the Texas Tech University System, is designed to support a privately operated grid serving energy-intensive computing operations, including artificial intelligence facilities. Fermi’s long-term vision includes the installation of 2.5 GW of small modular reactor (SMR) capacity and applications to the U.S. Nuclear Regulatory Commission for the construction of four Westinghouse AP1000 conventional reactors, each rated at approximately 1,100-1,200 MW.
The U.S. Government recently agreed with Westinghouse and its owners to support the deployment of $80 billion of new Westinghouse reactors across the country, potentially including a future equity stake for the U.S. Government.
However, the project has not been without its challenges. Construction was temporarily paused last week as Fermi awaits an air quality permit from the Texas Commission on Environmental Quality (TCEQ). CEO Toby Neugebauer downplayed the delay, stating the pause was a proactive measure to avoid potential permitting issues, but community groups and watchdogs have expressed concerns regarding the speed of the project’s development and potential impacts on local workers.
Fermi America, founded in part by former Texas Governor, and U.S. Energy Secretary Rick Perry, went public in with an initial public offering (IPO) that valued the company at $15 billion. The IPO raised $682.5 million, despite the company having no prior history of building such facilities and an executive team with limited data center experience.
Shortly after the IPO, Fermi’s shares tumbled by over 33% when a prospective anchor tenant withdrew from a non-binding agreement to lease space and provide $150 million in construction funding. This led to a class-action lawsuit filed on behalf of investors who purchased shares between , and . The lawsuit alleges that Fermi misled investors about demand for the project and over-relied on a single tenant for funding.
Despite these hurdles, Fermi remains committed to its long-term vision of a fully integrated energy and data complex. The company hopes to have its nuclear installations operational by , though a definitive schedule for overall project completion remains unclear.
“Winning the AI arms race doesn’t just take software developers. It takes more electricity,” said Chairman of the National Energy Dominance Council Doug Burgum, highlighting the strategic importance of the project.
The success of Project Matador will depend on Fermi’s ability to navigate regulatory hurdles, secure additional funding, and demonstrate a viable market for its power and data center services. The company’s progress will be closely watched by investors, regulators, and the broader energy and technology industries.
