Fermi America has secured a crucial natural gas pipeline connection with Energy Transfer to power its proposed 11-gigawatt data center campus in Amarillo, Texas, marking another significant step in developing one of the world’s largest computing facilities. The agreement, scheduled for completion in Q1 2026, will provide the initial energy infrastructure needed to support the company’s ambitious data center development plans while requiring minimal capital investment from Fermi.
Energy Infrastructure Partnership Details
Fermi’s agreement with Energy Transfer connects the planned campus to approximately 140,000 miles of pipeline infrastructure located just south of the development site. This natural gas supply will support the first two gigawatts of power generation for AI data center customers, according to company statements. Fermi CEO Toby Neugebauer emphasized that “this agreement secures the firm natural gas supply necessary to generate clean, reliable power” for their initial operations.
Project Matador Development Timeline
The massive development, known as “Project Matador,” is being developed in partnership with the Texas Tech University system on university-owned land. The project timeline includes:
- Pipeline interconnection completion by Q1 2026
- Initial 1.1GW of AI power delivery by 2026
- Potential expansion to 11GW total capacity
- Construction of 18 million square feet of data center space
This development approach mirrors scientific innovation principles that prioritize scalable infrastructure planning.
Multi-Source Energy Strategy
Fermi is implementing a diversified energy approach that combines multiple power sources to achieve its massive capacity goals. The company’s energy strategy includes:
- Natural gas generation for initial power requirements
- Solar and wind energy integration for renewable components
- Nuclear energy for long-term baseload power
- Multiple power purchase agreements to ensure reliability
Recent analysis from industry experts note that such diversified energy approaches are becoming essential for large-scale computing projects.
Nuclear Power Expansion Plans
The company’s long-term energy vision centers around nuclear power, with agreements already in place for four Westinghouse AP1000 reactors. Each reactor provides approximately 1,100-1,117MWe capacity, potentially supplying the bulk of the campus’s eventual 11GW requirement. Fermi has also partnered with Hyundai and Doosan Enerbility through memoranda of understanding to support reactor deployment, demonstrating the global nature of their supply chain strategy.
Market Context and Funding
Despite being a new provider without existing data centers, Fermi has mobilized significant capital through its successful IPO, which saw shares open 19 percent above expectations. This funding approach, according to recent analysis of technology infrastructure investments, reflects growing investor confidence in AI-driven data center demand. The company’s ability to secure multiple energy agreements before constructing facilities indicates strong industry partnerships and strategic planning.
Regional Economic Impact
The Amarillo location provides strategic advantages for energy-intensive computing operations, with access to multiple energy sources and existing infrastructure. The project’s scale—potentially reaching 11GW—would represent one of the largest concentrated computing facilities globally, creating significant economic development opportunities for the region while testing the limits of current energy infrastructure capabilities.
