Fermi America has secured a $500 million financing from Japan-based MUFG Bank to facilitate its 2.3GW power expansion. MUFG holds a reputation as one of the 10 largest financial groups in the world. The company noted the financing supports its strategy to deliver the first 2.3 of 11 gigawatts of long-duration, reliable power at scale. The loan is expected to fund the acquisition of three Siemens Energy F-class gas turbines. Furthermore, it will facilitate in repaying a pre-existing loan that Fermi America owns. The remaining will facilitate logistics and other aspects such as delivery and construction. It will also help in deploying additional turbines across its fleet. The company said the transaction strengthens near-term execution certainty and positions it for future project-level financing as it scales.

Scope on the Fermi America MUFG Financing Deal

Fermi America has noted that its financing from MUFG Bank follows a rapid period of execution since the company’s launch. Furthermore, they cited licensing progress, long-term site control, new construction partners and accelerated infrastructure as part of it all. The energy project is fundamental for supporting various projects that Fermi America is currently undertaking in the U.S.

One of these is the Project Matador, a data center project that is advancing to its second phase. The financial boost facilitates Fermi’s aim to be able to power such projects without putting strain on the community of Amarillo, Texas. “This financing puts real muscle behind our strategy – securing long-lead equipment early, staying ahead of the market, and executing with certainty,” said Toby Neugebauer, Chief Executive Officer and Co-Founder of Fermi America.

“We’re also doing what most people said was unthinkable – and we’re doing it at Fermi speed.” The funding also comes as a reprieve for Fermi as they have faced major criticism over the past week for halting Project Matador. Once approvals are done, one can anticipate that the second phase will move at ‘Fermi speed.’

Project Factsheet

• Company: Fermi America
• Financier: MUFG Bank (Japan-based; one of the top 10 financial groups all over the world)
• Financing Amount: $500 million
• Purpose: Back 2.3GW first stage of 11GW long-duration power plan.
• Location Focus: Amarillo, Texas (U.S.)

Funding Allocation

• Purchase of three Siemens Energy F-class gas turbines.
• Paying back of an outstanding loan.
• Delivery, construction and logistics.
• Installation of more turbines in the Fermi fleet.

Strategic Objectives

• Provide initial 2.3GW of resilient scalable power.
• Obtain equipment with long lead time.
• Firm near-term execution assurance.
• Place Company as to future level of project financing.
• Scale to 11GW capacity target.

Related Projects

• Project Matador (data center project) supported.
• Project Matador in the progress towards Phase II.
• Aims to power projects without straining Amarillo community.

Executive Statement

• CEO Toby Neugebauer emphasized:
• Early equipment acquisition
• Market positioning
• Accelerated execution (“Fermi speed”)

Current Outlook

• Financing secured
• Waiting to obtain approvals needed to continue to Phase II expansion.
• Prepares Fermi America to deploy scaled energy deployment and finance future round.