Fermi America Secures Energy Supply for 11GW Texas Data Center Campus

Strategic Insights -

Fermi America has made another significant move in securing energy supply for its proposed 11GW data center campus in Amarillo, Texas, with a new agreement signed with US midstream gas firm Energy Transfer to connect to its pipeline infrastructure. The campus, which is currently in the early stages of development, has already mobilized significant capital, with its IPO exceeding expectations and valuing the data center investment trust at $14.8 billion.

Key Takeaways:

  • Fermi America has signed an agreement with Energy Transfer to connect its 11GW data center campus in Amarillo, Texas to the midstream gas firm's pipeline infrastructure.
  • The pipeline interconnection is expected to be completed in Q1 2026, requiring minimal capital investment from Fermi America.
  • The campus will utilize a combination of on-site energy sources, including natural gas, solar, wind energy, and nuclear energy, with nuclear energy expected to provide the bulk of the power generation in the long term.
  • Fermi America has signed agreements with Siemens, Westinghouse, Hyundai, and Doosan Enerbility to secure power generation for the site.
  • The company has already secured significant funding, including a successful IPO valuing the data center investment trust at $14.8 billion, and a $100 million Series C equity funding round led by Macquarie Group.
  • The first two phases of the project are expected to cost more than $2 billion in capital expenditures.

Statistics:

  • 140,000 miles of pipelines and associated energy infrastructure owned by Energy Transfer across 44 states.
  • 11GW capacity for the data center campus in Amarillo, Texas.
  • $14.8 billion valuation of the data center investment trust following Fermi America's IPO.
  • 1.67 million sqm (18 million sq ft) area for the sprawling data center campus.
  • 4 Westinghouse AP1000 reactors planned for installation, each with an output capacity of approximately 1,117MWe.
  • 1.1GW of gas turbine capacity secured through a deal with Siemens to power the site initially.
  • $2 billion in capital expenditures expected for the first two phases of the project.

Sources:

  • A Make it make sense story, 07 Oct 2025, by Sebastian Moss, "Fermi America has signed another energy supply agreement to power its proposed 11GW data center campus in Amarillo, Texas. The firm, which recently launched its Initial Public Offering (IPO), signed an agreement with US midstream gas firm Energy Transfer to connect to its pipeline infrastructure located just south of the planned campus. The midstream major has around 140,000 miles of pipelines and associated energy infrastructure across 44 states. A new data center provider without data centers, now worth billions. Make it make sense 07 Oct 2025 By Sebastian Moss The pipeline interconnection is slated for completion in Q1 of 2026 and, according to Fermi, it will require minimal capital investment on its part. "This agreement with Energy Transfer secures the firm natural gas supply necessary to generate our first two gigawatts of clean, reliable power for our AI data center customers," said Fermi America co-founder & CEO, Toby Neugebauer. The company is currently developing Project Matador, in partnership with the Texas Tech University system, on whose land the data center will be sited. If realized, the project will span 18 million sq ft (1.67 million sqm) and have a capacity of up to 11GW. To power the campus, Fermi intends to utilize a combination of on-site energy sources, including natural gas, solar, wind energy, and nuclear energy. In addition to the deal just struck with Energy Transfer, it has signed several others to secure the power generation required for such a gargantuan project. Last month, the company signed a Letter of Intent with Siemens for up to 1.1GW of gas turbine capacity to power the site. This followed a deal in July that saw the company purchase more than 600MW of natural gas generation capacity through two separate transactions. Gas generation is expected to support the site's initial capacity, with Fermi holding a stated goal of delivering 1.1GW of AI power at the site by 2026. However, in the long term, nuclear energy is expected to provide the bulk of the power generation. To achieve this, Fermi has signed several agreements across the nuclear sector. Earlier this year, the company announced its intention to install four Westinghouse AP1000 reactors. Each AP1000 is a Generation III+ pressurized water reactor with an output capacity of roughly 1,1001,117MWe. Fermi is collaborating with Westinghouse to finalize a Combined Operating License Application to expedite the approval process. Fermi has also signed two other agreements to support its nuclear ambitions: two Memoranda of Understanding with South Korean firms Hyundai and Doosan Enerbility to support the deployment of the nuclear reactors on the site. While the campus remains in the very early stages of development, having yet to build anything and secure any customers, it has already mobilized significant capital. Its IPO exceeded expectations, with the company's shares opening 19 percent higher than expected, valuing the data center investment trust at $14.8 billion and raising $682m. Last month, the company secured $100 million as part of a Series C equity funding round, led by Macquarie Group, as well as a $250m senior loan facility, funded solely by Macquaries commodities and global markets business. While the project has not been short on deal counts, it remains to be seen whether it can actually get off the ground. The first two phases of the project alone are expected to cost more than $2bn in capital expenditures. Concerns over its viability have also been perpetuated by challenges faced by similar mega campus projects, such as Quantum Loophole and Tract.