Fermi America Receives First Natural Gas Turbines for up to 11GW Data Center Campus in Amarillo, Texas

Why It Matters

The turbine arrival accelerates Fermi's ability to meet hyperscaler power demand while highlighting the risks of over‑reliance on single anchor tenants in large‑scale data‑center projects.

Key Takeaways

• Six Siemens SGT‑800 turbines delivered to Fermi America
• Turbines provide ~one‑third of first gigawatt power
• Project Matador targets 11 GW, 18 M sq ft campus
• Anchor tenant withdrawal caused 46% stock plunge
• Class‑action lawsuit filed over tenant pull‑out

Pulse Analysis

The data‑center industry’s appetite for reliable, low‑latency power has driven developers to secure on‑site generation assets, and Fermi America’s receipt of six SGT‑800 turbines underscores that trend. Each turbine’s 50‑62 MW output not only jump‑starts the first gigawatt of the 11 GW Project Matador but also reduces dependence on the regional grid, a critical factor for hyperscalers seeking uninterrupted service. By sourcing the turbines through a multi‑nation shipment to Houston, Fermi demonstrates logistical capability that matches its aggressive rollout schedule.

Beyond the immediate power boost, the turbine delivery highlights Fermi’s broader energy‑mix strategy. Project Matador envisions a hybrid portfolio—natural gas complemented by solar, wind, and even nuclear—to meet sustainability goals while ensuring energy independence for a region traditionally reliant on external utilities. However, the recent loss of a $150 million anchor tenant exposed the vulnerability of capital‑intensive projects to tenant churn, prompting a sharp 46% stock drop and a class‑action lawsuit alleging misrepresentation. Investors are now scrutinizing the company’s ability to monetize its massive infrastructure without guaranteed revenue streams.

Looking forward, Fermi’s progress will be measured by its capacity to translate hardware deliveries into operational megawatts and secure a diversified tenant base. The integration of gas turbines offers a flexible, dispatchable backbone that can balance intermittent renewables, positioning the campus as a potential model for future data‑center parks. Yet, the legal challenges and market volatility serve as cautionary signals for other developers contemplating similarly ambitious, vertically integrated power solutions in a rapidly evolving tech landscape.

Fermi America receives first natural gas turbines for up to 11GW data center campus in Amarillo, Texas

Part of a deal signed with Siemens Energy last September · February 10, 2026 · Zachary Skidmore

Fermi America, the company behind the up‑to‑11 GW data‑center campus planned for Amarillo, Texas, has taken delivery of six natural‑gas turbines and accompanying generators from Siemens Energy.

![Image 1: Fermi III]

– Fermi America

The company signed a deal in September for the Siemens SGT‑800 natural‑gas turbines, each with a capacity of between 50–62 MW. According to Fermi, the equipment arrived at the Port of Houston aboard seven vessels from four countries. The company claims that the delivery is indicative of the project's accelerated schedule and, when operational, will make up approximately one‑third of the first gigawatt of power for the campus.

“We are moving at this pace because hyperscalers – and American consumers – demand reliable, world‑class power yesterday,” said Toby Neugebauer, Fermi America co‑founder and CEO. “Sure, this is a testament to our team’s unwavering drive to hit an aggressive power‑delivery timeline, but it’s not just about moving heavy machinery; it’s about a mission‑critical commitment to our country’s energy independence and national security, without our fellow Texans having to foot the bill.”

Fermi, a company co‑founded by former Texas governor and energy secretary Rick Perry, is planning to develop a massive 11 GW data‑center and energy campus near Amarillo on land owned by the Texas Tech University system. If realized, Project Matador will span 18 million sq ft (1.67 million sqm) and would utilize a combination of on‑site energy sources, including natural gas, solar, wind, and nuclear.

Despite having no data centers in operation and little experience in the sector within its executive team, the company raised $682 million in an October IPO that valued the business at $15 billion.

Since then, the project has experienced turmoil following reports that the campus’s first anchor tenant pulled out of an agreement worth an initial $150 million. The company’s stock fell as much as 46 percent after the announcement.

Following the high‑profile dropout, Fermi faced legal action from investors. At the start of the year, the company was hit with a class‑action lawsuit filed by Berger Montague PC. According to the lawsuit, the complaints arose after Fermi’s first tenant for its data‑center campus withdrew, which would have supported construction costs for the facility.