Fermi America, in partnership with the Texas Tech University System, has signed an agreement with Energy Transfer to ensure firm natural gas delivery to its HyperGrid campus, a large-scale private energy centre located near Amarillo, Texas. The agreement includes a direct connection to Energy Transfer’s pipeline south of the site, enabling Fermi to secure energy supply for its electricity production infrastructure supporting artificial intelligence (AI) operations.
A strategic network to secure energy capacity
Energy Transfer operates approximately 140,000 miles (225,000 kilometres) of pipelines across 44 U.S. states, making it one of the largest energy transport networks in North America. The connection to Energy Transfer’s pipeline will allow Fermi America to access a stable energy resource, with service expected to begin in the first quarter of 2026. According to the announced terms, the project requires minimal capital investment from Fermi.
Fermi America’s 5,236-acre (2,119-hectare) site is intended to host what is described as the world’s largest behind-the-meter private energy campus. The first phase aims to generate up to 2 gigawatts of electric power, dedicated exclusively to its data centre clients focused on AI applications.
Alignment between gas infrastructure and tech ambitions
Fermi America Co-Founder and Chief Executive Officer Toby Neugebauer emphasised that the site’s historical role as a top natural gas location was central to the project’s selection. This has enabled the company to build on existing infrastructure to power new generation capacity.
The agreement with Energy Transfer forms part of a broader strategy to secure critical gas-fired power generation assets, which Fermi began acquiring earlier this year. The company states it is maintaining an accelerated deployment timeline for bringing these assets online.
A market driven by AI energy demands
The HyperGrid campus development comes amid a surge in energy demand driven by AI technologies, particularly in the United States. Behind-the-meter generation allows data centre operators to access direct, independent power supply, reducing exposure to grid disruptions or pricing volatility.
According to official statements, connecting to Energy Transfer’s pipeline is a key technical milestone for the campus’s operational launch, without requiring heavy upfront investment. Fermi America continues to structure its infrastructure around targeted industrial partnerships, in a fast-execution model.
