Fermi America Secures 157.5 MW of Gas Turbines to Power Project Matador in Texas

Fermi America has signed a 20-year capital lease agreement with Mobile Power Solutions (MPS) for seven GE TM2500 gas turbines totaling 157.5 MW. The deal supports the first 500 MW phase of Project Matador—the company’s massive 11 GW HyperGrid™ development in Amarillo, Texas, touted as the world’s largest private energy grid. The turbines will be delivered by the end of 2025 and are expected to begin operation in early 2026.

The TM2500 units, derived from GE’s proven LM2500 aeroderivative gas turbines, offer rapid deployment and flexible, dispatchable generation that can bridge renewables, storage, and future nuclear output. Fermi plans to integrate these turbines into a diversified grid that includes natural gas, nuclear, solar, and large-scale battery systems—providing firm, scalable power for the surge in AI-driven data centers. The company, co-founded by former U.S. Energy Secretary Rick Perry and energy investor Toby Neugebauer, is working in partnership with the Texas Tech University System to develop the 11 GW behind-the-meter energy campus.

The 20-year partnership with MPS establishes a framework for future acquisitions of additional TM2500 units. Each turbine provides around 22.5 MW of output, capable of being deployed rapidly to support Fermi’s buildout schedule. The modular nature of these assets aligns with Fermi’s phased approach to bringing generation online while developing its planned nuclear and renewable capacity.

• Agreement covers seven GE TM2500 turbines (157.5 MW total) under a 20-year capital lease

• Supports Project Matador’s first 500 MW of generation capacity, targeted for 2026

• Establishes long-term partnership between Fermi America and Mobile Power Solutions

• Part of Fermi’s plan to build the world’s largest 11 GW private energy grid

• Integrates natural gas, nuclear, solar, and battery storage for AI-ready energy infrastructure

“Inking yet one more power agreement this week signals our firm commitment and proves our capability to deliver on promises made,” said Toby Neugebauer, Co-founder & CEO of Fermi America. “The country will soon realize what we’ve been saying all year – America is at war over who will control the future of information and intelligence.”

🌐  Analysis:

Fermi America’s Project Matador represents one of the most ambitious private energy initiatives in U.S. history—an 11 GW self-contained grid built to power the next wave of AI infrastructure. By securing fast-deploying GE TM2500 turbines, Fermi gains immediate dispatchable generation while its long-term nuclear and renewable projects progress. The approach mirrors trends across hyperscaler and AI infrastructure operators seeking to pair natural gas with carbon-free sources to ensure reliability amid surging power demand. Fermi’s model—combining private grid ownership, modular generation, and AI-focused energy delivery—positions it as a potential bellwether for future gigawatt-scale, data-centric power ecosystems.

Project Matador, Fermi America’s flagship 11 GW HyperGrid™ development, is located near Amarillo in the Texas Panhandle. The approximately 5,000-acre site, situated on land affiliated with the Texas Tech University System in Carson County, lies northeast of Amarillo near the Pantex Plant and the Panhandle-Hugoton natural gas field. This location gives Fermi direct access to existing energy infrastructure and transmission corridors, supporting its plan to integrate natural gas, nuclear, solar, and battery resources into the nation’s largest private power grid.