Fermi America, the Texas‑based developer of the Project Matador AI data‑center campus, has secured a $500 million non‑recourse equipment‑warehouse loan from Mitsubishi UFJ Financial Group (MUFG) Bank. The facility will fund the purchase of three Siemens Energy SGT‑800 gas turbines—an F‑class model also referred to as the SGT6‑5000F—and cover the delivery, construction and deployment of additional turbines that will power the company’s first gigawatt of on‑site, low‑carbon electricity.
The loan is a critical enabler for Project Matador’s 11‑GW private‑energy platform, which is designed to supply AI workloads with reliable, near‑zero‑carbon power. By securing the capital now, Fermi America can lock in long‑lead turbines and accelerate the first 2.3 GW of power and 15 million square feet of data‑center space slated for completion by the end of 2026, keeping the project on its aggressive construction timetable.
Despite the financing milestone, Fermi America’s financial health remains fragile. The company reported a net loss of $346.8 million in the third quarter ended September 30, 2025, and has $183 million in cash before its October IPO. Legal challenges loom, with multiple securities class‑action lawsuits alleging misleading statements about demand and an anchor tenant, and a recent termination of a $150 million advanced‑in‑aid‑of‑construction agreement has dented revenue projections. Construction has also paused while the company awaits air‑quality permits from the Texas Commission on Environmental Quality, and water‑usage concerns have been raised for the large campus.
CEO Toby Neugebauer said the financing “puts real muscle behind our strategy – securing long‑lead equipment early, staying ahead of the market, and executing with certainty.” He added that MUFG’s backing “further strengthens the ability to deliver the first 2.3 GW of long‑duration, reliable power at scale.”
Market reaction to the loan announcement was mixed. Shares of Fermi Inc. rose 5.1 % to $9.79 in London trading, reflecting optimism about the financing and tangible progress on turbine delivery. However, investors weighed this against the backdrop of ongoing litigation and the tenant termination, which have introduced significant headwinds and uncertainty about the company’s long‑term revenue trajectory.
The $500 million loan represents a decisive step forward for Project Matador, but the company must navigate legal, permitting, and financial challenges to maintain its ambitious growth path.
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