30th Oct 2025 12:46
(Alliance News) - Fermi Inc on Thursday said it has entered a 20-year lease agreement for seven gas turbines to be installed at its proposed grid development, Project Matador.
The Amarillo, Texas-based real estate investment trust is focused on data centres, powered by Matador, which aims to provide battery energy storage and up to 11 gigawatts of electricity via natural gas, solar and nuclear power.
Fermi listed on the Nasdaq Stock Market and the London Main Market at the beginning of the month. Its shares were down 0.6% at USD28.99 on Thursday afternoon in London, and rose 1.1% to USD29.01 pre-market in New York.
The company is leasing GE TM2500 turbines from Mobile Power Solutions, a provider of power generation equipment, in partnership with the University of Texas.
According to Fermi, the turbines will generate 157.5 megawatts of Matador's nameplate capacity, part of the first 500 megawatts scheduled to go online in 2026. Turbines will be delivered in the fourth quarter and begin operating early next year, Fermi added.
"The TM2500 units will bring flexible, dispatchable power online as Fermi delivers on its mission to secure American energy and AI dominance by integrating natural gas, nuclear, solar, and battery storage at scale," the company said.
The turbine deal follows contracts with two South Korean firms for nuclear energy production at Matador. Fermi on Monday noted a deal with Seoul-based Hyundai Engineering & Construction Co Ltd, part of the Hyundai Motor Group, for four AP100 nuclear reactors, and a separate memorandum of understanding for nuclear equipment from Changwon, South Korea-based heavy industries firm Doosan Enerbility Co Ltd.
Fermi has a 10-year tax abatement for Matador, based on its designation as a "reinvestment zone" by Carson County authorities, according to a statement released Wednesday.
In addition, Amarillo City Council agreed to a 20-year water supply deal, allowing Matador to consume 2.5 million gallons of water daily, at two times the rate of Texan taxpayers.
The agreement included a non-binding memorandum for Fermi to increase Matador's water consumption to ten million gallons a day, on the ground that Fermi funds Matador's infrastructure.
Fermi stressed that the project will "create high-paying jobs" and drive America's "AI dominance".
"We've heard the communities' concerns about water and land use and we are committed to being responsible stewards of both," said Chief Executive Toby Neugebauer.
On Thursday he added: "America is at war over who will control the future of information and intelligence. We join President Trump in taking the threat very seriously which drives us to work as hard as any other team out there, daily taking the appropriate actions to position America for the win.
Neugebauer co-founded Fermi with Rick Perry, a former Texas state governor and Trump's energy secretary from 2017 to 2019.
By Holly Munks, Alliance News reporter
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