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Fermi Inc on Monday reported a definitive deal for Xcel Energy Inc to supply electric services to its Matador energy grid project. Southwestern Public Service Co, which is part of Minneapolis, Minnesota-based utility Xcel Energy, will provide up to 200 megawatts of electricity to Matador, Fermi’s flagship development. This will begin with an 86-megawatt supply in January, before ramping up to full capacity. The Amarillo, Texas-based real estate investment trust focused on data centres has touted Matador as an integrated energy facility to service the needs of AI. The 11-megawatt project aims to combine nuclear, solar, gas and utility grid power with battery energy storage. Fermi so far has agreed to buy nuclear complex equipment from South Korea in its mission to secure US ‘AI sovereignty’, and secured a tax rebate for the Texas panhandle zone where Matador is based. Last month the company, whose co-founder Rick Perry is an ex-governor of Texas and former US energy secretary, received preliminary approval from state regulators for six gigawatts of the site’s 11-gigawatt capacity target. Chief Power Officer Larry Kellerman commented on Monday: ‘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.’ Adrian Rodriguez, president of Xcel Energy Texas-New Mexico added: ‘Xcel Energy is focused on meeting the growing energy needs of the Texas Panhandle and is pleased to work with Fermi America on this project.’ Fermi shares were flat at $16.30 on Monday morning in London, while Xcel Energy shares were down 1.2% in pre-market trading at $76.29 each on Monday morning in New York. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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