Steel in the Ground: Fermi’s Texas Megaproject Powers Up for the AI Race

AMARILLO, Texas – June 30, 2026 – In the vast expanse of the Texas Panhandle, a vision of unprecedented scale is taking concrete form. Fermi America announced today a pivotal agreement with Primoris Services Corporation to build out the core infrastructure for the first phase of its Project Matador, an audacious effort to construct one of the world's largest private electric grids. While press releases are common, this one represents a critical signal: the transition from ambitious blueprint to steel in the ground, all in service of the voracious energy demands of artificial intelligence.

The deal tasks Primoris with the engineering and construction of the “balance of plant” for six Siemens SGT-800 gas turbines. This is the complex web of systems—foundations, utilities, and connections—that will transform individual turbines into a cohesive, simple-cycle power facility. This facility is the cornerstone of a much larger plan: an 11 GW, and potentially 17 GW, private grid designed to power a hyperscale computing and data center campus rising from the Texas soil. For Fermi, this isn't just a construction update; it's a declaration that its “2.0 execution strategy” of partnering with proven builders to accelerate timelines is now a tangible reality.

The AI Energy Imperative

To understand the significance of Project Matador, one must look beyond the Texas plains to the digital realm. The generative AI revolution is creating an insatiable appetite for electricity. Data center power demand has surged, with some estimates projecting a 45 GW energy shortfall across the United States in the coming years. The nation's public grid, constrained by aging infrastructure and lengthy regulatory processes, cannot keep pace. Companies looking to build new AI facilities face grid connection wait times of three to seven years, a lifetime in the fast-moving tech industry.

This is the chasm Fermi America aims to bridge. By developing a massive “behind-the-meter” private grid, it offers hyperscale tenants a dedicated, reliable, and rapidly scalable power source. Project Matador’s integrated campus plans to combine power from natural gas, next-generation nuclear reactors, solar, and battery storage. This multi-source approach is designed to provide the continuous, high-density power that advanced AI computing requires, on timelines measured in months, not years. The agreement with Primoris is the first major physical step in realizing that vision for the project's natural gas component.

A Blueprint of Ambition and Execution

Fermi's leadership frames the Primoris deal as a deliberate acceleration. Work is already underway. Primoris previously completed the massive excavations for the six gas turbine power islands and staged materials for underground utilities. This new agreement allows them to build on that momentum without delay.

“Primoris has set the bar for what we expect from a partner on this site,” said Chad Ingersoll, Vice President of Construction at Fermi America. “Because they already excavated the power islands and staged balance of plant material, we are carrying real momentum into engineering and construction rather than starting cold. This agreement lets us keep our foot on the gas and bring phase one online faster.”

This “builder-first” approach is central to what the company calls its “Fermi 2.0” strategy. By locking in proven performers for critical scopes of work, Fermi aims to de-risk a project of staggering complexity. Jacobo Ortiz, Co-President of Fermi America, emphasized this point, stating, “Primoris' work to date on the site has been nothing short of exemplary... Expanding our partnership... is precisely what Fermi 2.0 is about: aligning with world-class partners who share our dedication and standards, and turning bold plans into operating infrastructure.”

For its part, Primoris is prepared for the challenge. “The scale of this project underscores its significance, and we look forward to continuing to contribute to its success,” said Heath Moncrief, President of Primoris' Energy segment, highlighting a shared commitment to safety and an accelerated schedule.

High Stakes in the Panhandle

Project Matador is poised to radically transform the Amarillo region. The project, sited on a 5,855-acre plot leased from Texas Tech University, is expected to create over 9,000 jobs at peak construction, making it one of the largest labor-intensive projects in the state's recent history.

But such ambition comes with significant scrutiny. The project’s immense water needs for cooling its power plants and future data centers have raised concerns in a region reliant on the depleting Ogallala Aquifer. To address this, Fermi secured a long-term water supply agreement with the City of Amarillo in late 2025, initially for 2.5 million gallons per day with an option to expand, committing to fund the necessary infrastructure.

Furthermore, the planned integration of four Westinghouse AP1000 nuclear reactors, with construction slated to begin this year, brings another layer of complexity. While Fermi highlights nuclear as a source of clean, reliable baseload power and has begun the rigorous NRC licensing process, the site’s proximity to the Pantex nuclear weapons plant has drawn attention. The company has secured its 6 GW Clean Air Permit for conventional power generation and has a firm natural gas supply agreement in place, signaling progress on multiple regulatory fronts.

The Financial Architecture of a Megaproject

Building the future of energy is a capital-intensive endeavor. With an estimated total cost running into the tens of billions ($70-90 billion or more), Project Matador relies on a complex financial structure. Fermi, a development-stage company with no operating history and a reported net loss of $486.4 million for 2025, has successfully raised approximately $1 billion in equity and debt and arranged over $865 million in equipment financing from institutions like Macquarie Group, MUFG Bank, and Beal Bank affiliate CSG Investments.

However, significant risks and dependencies remain. The company's financing is closely tied to its commercial progress. A loan from Macquarie, for instance, includes a critical clause requiring Fermi to secure a 100 MW data center lease by late May 2026. While the company reports active discussions, no binding tenant agreement has been announced. This lack of a committed anchor tenant for a project of this scale is a notable risk factor, compounded by recent insider share sales and the recent departure of its co-founder and former CEO.

Despite these financial hurdles, the physical progress marked by the Primoris contract provides a powerful counter-narrative. It demonstrates to potential partners, investors, and future tenants that Project Matador is moving forward with tangible velocity. The agreement converts financial capital into foundational infrastructure, representing a decisive step in an ambitious, high-stakes gamble to build the power backbone for America's AI dominance.