Fermi America signed a definitive Electric Service Agreement with Xcel Energy subsidiary Southwestern Public Service Company to supply up to 200MW of power to its 11GW Project Matador Campus in Amarillo, Texas. SPS will begin delivering 86MW in January 2026, with capacity scaling to 200MW under existing tariffs. The power will flow through SPS’s 115kV transmission network, supporting the build-out of Fermi’s behind-the-meter AI energy complex.
The agreement advances Fermi America’s plan to assemble one of the largest dedicated AI power platforms in the U.S., integrating utility-supplied electricity with natural gas, nuclear, solar, and battery storage resources. Project Matador aims to support hyperscale AI and compute workloads by developing a highly redundant private grid at 11GW scale.
Xcel Energy described the ESA as part of its broader effort to meet rising power demand across the Texas Panhandle. Fermi executives framed the deal as a key step toward ensuring reliable, cost-effective energy for its AI-focused campus and strengthening its cooperation with SPS.
• SPS to deliver 86MW in Jan. 2026, ramping to 200MW
• Power delivered via 115kV high-voltage transmission
• Part of Fermi’s 11GW Matador Campus, including combined-cycle gas, nuclear, solar, and storage
• Supports hyperscale AI and compute operations
• Xcel Energy cites growing regional demand in Texas Panhandle
“This agreement is yet one more example of Fermi transforming intent into execution, with the strong commercial and technical support of our friends at Xcel Energy,” said Larry Kellerman, Chief Power Officer of Fermi America.
| Fermi America & Project Matador — Key Facts | |
| Category | Details |
|---|---|
| Company | Fermi America™ (Nasdaq & LSE: FRMI), developer of next-generation private electric grids for hyperscale AI. |
| Leadership | Co-founded by former U.S. Energy Secretary **Rick Perry** and Quantum Energy co-founder **Toby Neugebauer**. Chief Power Officer: **Larry Kellerman** |
| Project Location | Project Matador Campus — Amarillo, Texas. |
| Total Scale | **11 GW** next-generation private grid supporting hyperscale AI and compute operations. |
| Power Sources | Integrated behind-the-meter energy mix including: • Largest U.S. combined-cycle natural gas project • One of America’s largest new clean nuclear complexes • Solar power • Battery energy storage • Utility grid power |
| New ESA | Xcel Energy’s Southwestern Public Service (SPS) will deliver **up to 200 MW** of utility power. • 86 MW starts January 2026 • Ramps to 200 MW via SPS 115 kV transmission |
| Purpose | Deliver highly redundant, low-cost, high-capacity power for hyperscale AI, cloud, and large-model compute. |
| Recent Quote | “Securing reliable and cost-effective power from Xcel Energy today and working together with them to grow our relationship over time is a key component of Fermi’s plans.” — Larry Kellerman |
| Utility View | “Xcel Energy is focused on meeting the growing energy needs of the Texas Panhandle and is pleased to work with Fermi America.” — Adrian Rodriguez, Xcel Energy TX–NM |
🌐 Analysis
The ESA underscores the fast-accelerating energy requirements for hyperscale AI campuses, with utilities increasingly partnering to secure multi-hundred-megawatt commitments. Fermi’s hybrid grid strategy mirrors recent moves by data center operators building dedicated generation portfolios to manage rising AI power density. The Amarillo build-out joins several large-scale U.S. AI energy projects pairing utility power with dedicated natural gas and nuclear resources.
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