On December 1, Fermi America signed a non-binding Memorandum of Understanding (MoU) with Hungarian power-cooling specialist MVM EGI Zrt.
The partnership aims to develop advanced cooling systems for Fermi’s planned data centre and energy campus in Amarillo, Texas, which could reach up to 11GW in capacity.
The two companies will start by doing engineering and feasibility studies for a set of indirect hybrid cooling towers. These towers are intended to support up to 6GW of planned natural gas generation and four AP1000 nuclear reactors on the campus.
Hybrid cooling towers to save water
Under the MoU, Fermi and MVM EGI will define cooling requirements, evaluate tower configurations, and assess site and height constraints. They will also model the water-saving potential of hybrid cooling at scale.
450ft MVM EGI hybrid dry-wet cooling towers engineered to deliver massive cooling capacity and substantial water conservation. Image: Fermi America
“MVM EGI has been on the cutting-edge of power cooling for more than half a century, maintaining the heritage of our founders, Professor László Heller and Professor László Forgó whom the high-capacity water-saving dry cooling systems are named after worldwide,” said MVM EGI PLC CEO Péter Kárpáti.
The cooling design primarily uses air and closed-loop water circulation to reduce evaporative loss. The companies also plan to explore recycled water, underground reservoirs, and solar-covered retention ponds to further conserve resources.
Construction on the first tower is expected to start in January 2026, with full build-out by 2034.
Local leadership and regional commitment
The operator emphasised that the project is rooted in the local community.
“Fermi isn’t some out-of-town operation parachuting in. Our leadership is from West Texas – we grew up on this dirt, and we care about the land and its resources,” said Fermi America Co-founder and CEO Toby Neugebauer.
Neugebauer added: “As promised, we’re working with global innovators like MVM to ensure Project Matador complements the long-term water needs of the region, building something big, but doing it the right way.”
Ambitious data centre and energy plans
Project Matador, to be developed on Texas Tech University land, could become one of the largest data centre campuses in the world. It will cover 1.67 million square metres and combine natural gas, solar, wind, and nuclear energy to power operations.
The company has already secured multiple energy deals. In October, the company signed an agreement with Energy Transfer to connect to nearby pipeline infrastructure by Q1 2026. Earlier, it reached a non-binding deal with Siemens for up to 1.1GW of gas turbines and purchased more than 600MW of natural gas capacity through separate transactions.
For nuclear power, the project team plans four Westinghouse AP1000 reactors, each with a capacity of roughly 1,100-1,117MWe. The company is working with Westinghouse on a Combined Operating License Application to speed approvals.
The project has drawn major investment, including a successful IPO in October that valued the company at $14.8bn. Earlier funding included $100m in Series C equity led by Macquarie Group and a $250m senior loan.
Even with strong support, the project has challenges. The first two phases are expected to cost more than $2bn, and the long timeline for AP1000 reactors could make it harder for the campus to reach its 11GW goal.