Fermi America Secures Long Term Power for Project Matador near Amarillo

Fermi America announced a signed Electric Service Agreement with Southwestern Public Service Company, a subsidiary of Xcel Energy, committing up to 200 megawatts of electrical capacity to the Project Matador campus near Amarillo. The agreement, executed on December 5, 2025, calls for delivery to begin at 86 megawatts in January 2026 and to increase to as much as 200 megawatts over time. Company statements describe the arrangement as central to securing reliable power for large scale artificial intelligence and computing operations at the campus.

The immediate effect is a guaranteed tranche of capacity on the regional system that will be available for the data intensive operations Fermi plans to host. For context, 200 megawatts represents a substantial industrial allocation of electricity that will require sustained grid capacity, routine scheduling, and likely longer term transmission planning across the Texas Panhandle and adjacent Oklahoma Panhandle. Southwestern Public Service Company will provide the deliveries, signaling investor utility participation in accommodating high consumption customers.

For residents of Texas County, Oklahoma, the agreement matters in several ways. Securing firm capacity for Project Matador can accelerate construction and operational timelines for the campus, which can translate into local contracting opportunities, property tax receipts and ancillary service demand such as transportation and lodging. At the same time, large new electricity demands shape regional utility planning and may require upgrades to transmission infrastructure, which can influence local permitting, construction activity, and long term rate discussions before state regulators.

Market and policy implications extend beyond local economic impact. The deal illustrates a broader trend of data center and artificial intelligence development driving long term increases in electricity demand, prompting utilities to negotiate firm capacity arrangements and to plan new generation or transmission investments. Energy regulators, municipal leaders, and utility planners will be watching how delivery performance and grid integration proceed as Fermi moves from the initial 86 megawatts in January 2026 toward the full 200 megawatts target.

Key milestones to monitor include the January 2026 start of deliveries, any requests for transmission upgrades, and announcements about campus construction and hiring. These will determine how quickly the regional economy captures the potential benefits and how local energy markets adjust to the new demand.