Fermi America Secures $150 Million Advance in Aid of Construction Agreement for Next-Gen Power Grid Serving National Security Sectors
6 November 2025
Fermi America, the Texas-based energy and infrastructure innovator, has announced the execution of a $150 million Advance in Aid of Construction Agreement (AIAC) with its inaugural client, signaling a major milestone for strategic energy infrastructure serving U.S. national security and defense technology operations. Co-founded by former U.S. Energy Secretary Rick Perry and energy executive Toby Neugebauer, Fermi America aims to disrupt the power delivery landscape by developing a next-generation private electric grid designed specifically to support hyperscale artificial intelligence and national defense needs.
This new venture, dubbed Project Matador, represents the country’s largest 11 gigawatt (GW) private grid campus to date. Notably, the integrated campus will feature an unprecedented mix of energy assets, including the largest combined-cycle natural gas generation project in the United States, one of the most significant new nuclear power complexes, utility grid power, extensive solar farms, and on-site battery energy storage. This diversified, behind-the-meter architecture is engineered to provide redundant, reliable and high-quality electricity essential not only for hyperscale AI data centers, but also for the advanced simulation, research, and operational support systems critical to defense sector stakeholders.
The landmark AIAC signed today ensures that capital will be deployed directly into the scaling of the campus infrastructure, unlocking stable and controllable power capacity. The importance of this development is underscored by rising concerns over grid resiliency, cyber vulnerabilities, and energy security affecting U.S. military installations, defense R&D facilities, and major defense contractors. Modern military and intelligence applications demand high-availability electrical supply to power next-generation command centers, artificial intelligence platforms, persistent ISR (intelligence, surveillance, reconnaissance) sensors, and energy-intensive advanced manufacturing for everything from missile systems to hypersonic vehicles. By integrating advanced nuclear assets and battery storage, Fermi America offers a level of redundancy and cyber-hardened reliability that could set new standards for sensitive defense infrastructure.
The company's leadership, combining senior experience from former federal energy policy makers and established private sector finance, intends to accelerate delivery of complex energy solutions tailored to the needs of the national security ecosystem. The project combines best practices from commercial, defense, and intelligence sectors, aiming to address the critical infrastructure challenges faced by defense system integrators, facility operators, government agency buyers, cyber and electronic warfare solution providers, and major technology vendors. For leading primes, sub-contractors, and specialty suppliers reliant on high-assurance power continuity, this project is expected to offer a unique value proposition and a blueprint for future campus-scale infrastructure efforts.
With $150 million secured for initial construction, industry observers anticipate downstream supply chain opportunities in smart grid management, networked command and control, advanced building security, and resilient communications integration. Contractors specializing in power electronics, SCADA systems, secure facility construction, microgrid design, and cyber resilience are particularly poised to benefit from procurement opportunities that will follow. As the United States pushes to maintain technological superiority and mission assurance, scalable projects such as Fermi America’s Matador campus mark a critical step in modernizing the strategic backbone for American defense innovation, long-term operations, and the secure digital infrastructure needed to counter 21st century threats.