MUFG announced a $500 million equipment loan to Fermi America, a company building an 11 GW private energy campus in partnership with the Texas Tech University System. The facility will finance the purchase of three Siemens Energy F‑class gas turbines, repay an existing loan, and fund additional turbine deployment, positioning Fermi to deliver the first 2.3 GW of power in the coming years.
The loan gives Fermi America the capital needed to secure high‑lead equipment and de‑risk the early stages of its campus. By repaying an existing debt, the company frees up cash flow for future expansion and reduces interest expense, while the new turbines will provide reliable, low‑carbon power to support the growing demand for AI and high‑performance computing workloads.
For MUFG, the deal adds a sizable, long‑term asset to its project‑finance book and reinforces its strategy of backing high‑growth, low‑risk infrastructure projects. The transaction aligns with MUFG’s leadership in global project finance, where it consistently ranks among the top lenders for energy and infrastructure deals. The loan’s size relative to MUFG’s quarterly revenue—$9.77 billion in Q3 2025—represents a modest but strategically significant addition to its portfolio, underscoring confidence in the private power market’s resilience.
Fermi America’s shares rose 5.1 % in London and 4.4 % in New York pre‑market on February 11, reflecting investor enthusiasm for the financing. The market reaction was driven by the fact that the loan secures critical equipment and reduces debt, thereby accelerating the company’s execution timeline and validating its business model for powering AI data centers without heavy reliance on the public grid.
Toby Neugebauer, CEO and co‑founder of Fermi America, said the financing “puts real muscle behind our strategy – securing long‑lead equipment early, staying ahead of the market and executing with certainty.” Daniel Seltzer, head of infrastructure project finance at MUFG, described the loan as “an initial step toward what will become the largest power and AI data‑center campus.”
The transaction sits within a broader trend of energy investment driven by AI and data‑center demand. Fermi’s campus will combine natural gas, nuclear, solar, and battery storage, while the Texas Tech University System’s land ownership provides a strategic base. MUFG’s recent Q3 2025 earnings—EPS of $0.30 and revenue of $9.77 billion—show a 3.6 % rise in ordinary income and a 3.7 % increase in profit attributable to owners, indicating a solid financial footing to support such project‑finance deals.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.