Fermi Inc. Secures $500M MUFG Equipment Loan for AI Data Center Project Matador Turbines

summarizeSummary

Fermi Inc. secured a $500 million equipment loan warehouse facility from MUFG Bank, Ltd. to fund the acquisition of Siemens Energy F-class gas turbines and related equipment for its AI-powered data center campus, Project Matador.

check_boxKey Events

• $500 Million Equipment Loan Facility Secured

  Fermi Inc. (through its subsidiary Fermi Turbine Warehouse LLC) entered into a senior secured equipment loan warehouse facility with MUFG Bank, Ltd. for an aggregate principal amount of up to $500,000,000.

• Funds Acquisition of Siemens Energy Turbines for Project Matador

  Proceeds from the loan will primarily fund the acquisition of three Siemens Energy F-class gas turbine units and related equipment for the company's AI-powered data center campus, 'Project Matador,' in Amarillo, Texas. An initial payment of $168.3 million will be made to Siemens Energy.

• Refinances Existing Debt and Supports Turbine Deployment

  The financing also enables the company to refinance its existing term loan facility and supports the delivery, construction, and deployment of turbines across Fermi's existing fleet.

• Strategic Capital for Gigawatt-Scale Energy Campus

  This capital infusion is crucial for accelerating the development of Fermi America's 11 gigawatt private energy campus, providing execution certainty for the first 2.3 gigawatts of power, as highlighted in the accompanying press release.

auto_awesomeAnalysis

Fermi Inc. has secured a substantial $500 million senior secured equipment loan warehouse facility from MUFG Bank, Ltd. This financing is critical for the company's strategic initiative, Project Matador, an AI-powered data center campus in Amarillo, Texas. The funds will primarily be used to acquire three Siemens Energy F-class gas turbine units, refinance existing debt, and support the deployment of turbines. While the loan carries an 18-month maturity and an interest rate of SOFR + 4.0%, it provides essential capital for a major infrastructure project, enhancing execution certainty and supporting the company's ambitious goal of delivering 11 gigawatts of power. The non-recourse nature of the facility to the parent company, Fermi Inc., also limits direct risk exposure for the broader entity.