DailyEnergyInsider
November 10, 2025
by Kim Riley
The Texas Commission on Environmental Quality (TCEQ) has given preliminary approval for 6 gigawatts (GW) of clean, natural gas-based power generation at an AI project headed by Fermi America in partnership with the Texas Tech University System.
The approval — subject to a formal meeting and ongoing process for public input — is for Project Matador, Fermi’s projected 11-GW campus being created as the world’s largest, next-gen private grid.
The behind-the-meter campus is expected to integrate one of the largest nuclear power complexes in America, the nation’s biggest combined-cycle natural gas project, utility grid power, solar power, and battery energy storage, to deliver hyperscaler artificial intelligence (AI).
“Hardworking Americans are tired of watching electricity costs rise while the grid ages,” said Toby Neugebauer, CEO and co-founder of Fermi America. “At Fermi, our private grid model ensures that the growing demand for AI is met privately — freeing up power on the public utilities to serve homes, schools, hospitals, and small businesses as intended.”
“Together with our partners, we’re building one of the cleanest, most efficient power fleets in the world, driven by American innovation — without asking taxpayers to foot the energy bill for the world’s largest, highest-margin companies,” Neugebauer added.
As Fermi America’s clean natural gas project comes online, 6 GW of power demand will not have to be drawn from the U.S. grid. Instead, Fermi said it will utilize minimal grid power as it ramps up in the coming months, until the initial gas generators, which are already en route to the campus, are installed and online in 2026.
The entire premise behind the private HyperGrid campus being built is that the nation’s grid cannot grow fast enough to keep pace with the AI race, nor should consumers be expected to foot the bill through rising utility rates to support the most successful companies in the world.
“The era of burdensome permitting processes stalling critical infrastructure is over,” said Texas Tech University System Board of Regents Chairman Cody Campbell. “Project Matador aligns directly with President Donald J. Trump’s Executive Orders on energy security and AI leadership. This creates an unprecedented opportunity for public and private sectors to work together to strengthen the grid, protect taxpayers, and secure America’s AI future — without delay.”
Fermi America plans to integrate zero emissions solar into its power supply plan and utilize the latest technology and hybrid cooling systems, ensuring protection of air quality and water conservation, as well.
Additionally, Fermi’s air-quality analysis shows that the project meets all federal and state air quality, odor and health effect standards, the company said.
