Fermi America announced Wednesday that it has secured more than 600 megawatts of natural gas generation capacity through two equipment agreements, part of its plan to power a large-scale artificial intelligence campus northeast of Amarillo.
The site — referred to as the Amarillo HyperGrid — is located on roughly 5,800 acres in Carson County, about 20 miles outside city limits and adjacent to the federally operated Pantex Plant, the U.S. Department of Energy’s primary nuclear weapons assembly and disassembly facility. The land is part of a partnership with the Texas Tech University System, which has described the collaboration as a strategic effort to support artificial intelligence, data innovation, and sustainable energy infrastructure.
Fermi said the new acquisitions will support 1 gigawatt of on-site power generation by the end of 2026, with an eventual goal of building 11 gigawatts of AI capacity over the next decade. Equipment installation is expected to begin later this year, though the company has not released a full construction timeline.
“We realized months ago that the number one challenge to delivering on President Trump’s executive orders for energy dominance in the AI race with China was the supply chain,” said Fermi America co-founder Toby Neugebauer. “In order to position America’s hyperscalers with the new energy they require for AI, our team prioritized purchasing equipment for over 600 megawatts of the one gigawatt of generation to be offered by the end of 2026. Today’s announcement shows that Fermi America is doing what it takes to deliver at an unprecedented scale.”
Equipment details
The first equipment deal includes six Siemens SGT-800 gas turbines, six heat recovery steam generators, and one SST-600 steam turbine. The ISO-rated package is expected to deliver 478 megawatts at standard conditions, or more than 400 megawatts at the project’s site elevation.
The package, purchased from Firebird LNG with support from Siemens Energy, includes exhaust venting systems allowing simple-cycle operation during steam turbine outages or maintenance.
“The executed agreements will allow Fermi America to acquire highly reliable, energy-efficient, and environmentally advanced power generation systems to support the artificial intelligence campus,” said Larry Kellerman, chief power procurement officer. “The initial fleet represents ISO rated capability of over 600 MW of power generation equipment that is available for shipment and refurbishment, avoiding multi-year Original Equipment Manufacturer (OEM) lead times.”
Kellerman added that the configuration “allows for optimal, multi-shaft reliability for Fermi America’s hyperscaler end-use customers, with significantly lower output of all criteria emissions relative to either the marginal emissions rates of grid-supplied power across the vast majority of the U.S. or much higher heat rates and smaller-scale generation assets deployed at many competing intelligence sites.”
According to Fermi, the equipment will achieve a full-load heat rate in the low 7000 BTU per kilowatt-hour range, with CO₂ emissions more than 30% below grid power averages. Pollution controls will include selective catalytic reduction and carbon monoxide catalysts.
The second acquisition includes three GE Frame 6B gas turbines and one GE steam turbine. The used equipment — formerly operated at a New Jersey industrial site — will be refurbished by a GE-certified provider before arriving in Amarillo.
Fermi plans to operate the gas turbines initially in simple cycle mode, delivering about 135 megawatts under ISO conditions. Once new heat recovery steam generators are installed, the package is expected to operate in combined cycle mode with up to 180 megawatts of capacity at elevation and a full-load heat rate in the low 8000 BTU/kWh range.
National framing, local questions
“Behind-the-meter power isn’t just a Fermi advantage—it’s the only solution for America’s AI dominance,” Neugebauer said. “Without it, we’re handing China the keys to AI. There will only be one winner.”
The project has been framed by Fermi leadership and co-founder Rick Perry, former U.S. Energy Secretary and Texas governor, as a national security and innovation priority — one that intersects with federal energy policy and the global race to develop AI infrastructure at scale.
Still, key questions remain unanswered at the local level. No construction has begun, and the company has not announced a formal groundbreaking or permitting schedule. It has also not released information about:
Because the land lies outside Amarillo city limits, local planning and zoning oversight may be limited. Carson County officials have not publicly commented on the project, and no state or federal regulatory filings have yet been made public.
Fermi America says it expects to begin installing equipment in 2025, with the goal of bringing 1 gigawatt of generation online by the end of 2026. For now, the company’s statements remain high-level, and major decisions about infrastructure, transparency and public impact remain to be seen.
This article originally appeared on Amarillo Globe-News: Fermi America secures 600 MW of gas power for Amarillo AI campus
Reporting by Michael Cuviello, Amarillo Globe-News / Amarillo Globe-News
USA TODAY Network via Reuters Connect
