Fermi America Takes Delivery of First Turbines for Massive 11GW Texas Data Center Project
February 10, 2026
The race to build power infrastructure for the next generation of AI and hyperscale computing has reached a new milestone in the Texas Panhandle. Fermi America, the developer behind the colossal "Project Matador," has received the first shipment of on-site power generation equipment, marking a critical step forward for one of the world's most ambitious data center ventures. The company confirmed the delivery of six Siemens Energy SGT-800 natural gas turbines and accompanying generators at the Port of Houston. This equipment, transported via seven vessels from four countries, represents the initial phase of a supply agreement signed with Siemens in September 2025. Each turbine has a capacity ranging from 50 to 62 megawatts (MW).
Fermi America stated this first delivery will constitute approximately one-third of the initial gigawatt of power planned for the campus, signaling an accelerated construction timeline. "We are moving at this pace because hyperscalers - and American consumers - demand reliable, world-class power yesterday," said Toby Neugebauer, Fermi America's co-founder and CEO. He framed the project as a "mission-critical commitment to our country's energy independence and national security." The scale of the overall project is staggering. Planned for land owned by the Texas Tech University system near Amarillo, Project Matador envisions a campus with a potential total power capacity of up to 11 gigawatts (GW). If fully realized, the development would span 18 million square feet (1.67 million square meters) and utilize a mix of on-site energy sources including natural gas, solar, wind, and nuclear power. The project's progress comes amidst a period of significant volatility for the startup. Co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry, Fermi America has no operational data centers and limited sector experience within its leadership.
Despite this, it achieved a valuation of nearly $15 billion following a $682 million initial public offering in October 2025. However, its share price later fell sharply after reports that its first anchor tenant withdrew from a preliminary $150 million agreement, leading to a class-action lawsuit from investors filed at the start of the year. The delivery of the turbines underscores the immense capital and logistical challenges inherent in building mega-scale data center campuses, particularly those aiming to decouple from the strained public power grid. The move towards dedicated, on-site generation is becoming an increasingly critical strategy for developers catering to the soaring energy demands of artificial intelligence. Fermi America's progress will be closely watched as a test case for this model's viability at an unprecedented scale.
Source: datacenterdynamics
