Fermi America and MVM EGI Announce Water-Saving Hybrid Cooling Agreement for World's Largest Private Energy Grid, Delivering on Promises Made to Protect West Texas Water Resources

Rhea-AI Summary

Fermi America (Nasdaq: FRMI) signed a non-binding MOU with MVM EGI to engineer hybrid dry–wet cooling towers for its 11-gigawatt private energy grid campus, Project Matador.

The collaboration covers preliminary engineering and feasibility studies for indirect hybrid towers to support 6 GW of combined-cycle gas generation and four AP1000 nuclear units, with construction of the first tower scheduled for January 2026 and full cooling system completion targeted by 2034. The design prioritizes air-based, closed-loop circulation, evaluation of recycled/reclaimed water, underground reservoirs, and solar-covered retention ponds to reduce evaporative loss and protect the Ogallala Aquifer.

Positive

• Supports an 11-gigawatt private energy grid campus
• First cooling tower construction scheduled for January 2026
• Full cooling system targeted for completion by 2034
• Design prioritizes air-based closed-loop cooling to reduce evaporation
• Includes evaluation of recycled/reclaimed water and reservoirs

Negative

• MOU is non-binding, so commitments are preliminary
• No quantified water-savings figures published in the announcement
• Delivery schedule extends to 2034, exposing project to long-term execution risk

News Market Reaction

-0.24%

3 alerts

-0.24% News Effect

-$23M Valuation Impact

$9.51B Market Cap

0.1x Rel. Volume

On the day this news was published, FRMI declined 0.24%, reflecting a mild negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $23M from the company's valuation, bringing the market cap to $9.51B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Campus capacity: 11 gigawatts Gas generation capacity: 6 gigawatts Nuclear units: 4 AP1000 units +3 more

6 metrics

Campus capacity 11 gigawatts Private energy grid campus for Project Matador

Gas generation capacity 6 gigawatts Combined-cycle natural gas generation supported by hybrid cooling towers

Nuclear units 4 AP1000 units Nuclear units planned to be served by the hybrid cooling system

First tower construction January 2026 Scheduled start of construction for the first hybrid cooling tower

Cooling system completion 2034 Targeted completion of full hybrid cooling system build-out

Lease term 99 years Lease with Texas Tech University System tied to campus development

Market Reality Check

Price: $9.36 Vol: Volume 3,606,246 vs 20-da...

normal vol

$9.36 Last Close

Volume Volume 3,606,246 vs 20-day average 4,228,210 (relative volume 0.85x) indicates muted trading interest into this news. normal

Technical Price at 15.25 is trading below the 200-day MA of 22.46, reflecting a pre-existing downtrend ahead of this announcement.

Peers on Argus

No peer stocks in the provided sector universe showed momentum flags or same-day...

No peer stocks in the provided sector universe showed momentum flags or same-day headlines, suggesting the move was stock-specific rather than part of a broader Real Estate Investment Trusts rotation.

Historical Context

5 past events · Latest: Dec 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 05	Power supply deal	Positive	+3.4%	Electric Service Agreement securing up to 200 MW from SPS for Project Matador.
Dec 01	Cooling tech MOU	Positive	-0.2%	Non-binding MOU to engineer water-saving hybrid cooling towers for 11 GW campus.
Nov 25	Financing discussions	Positive	-2.5%	Company confirms discussions for $4+ billion non-recourse project financing via SPV.
Nov 10	Shareholder letter	Neutral	+3.9%	Q3 2025 shareholder letter and webcast announcement outlining results and guidance.
Nov 06	Client AIAC agreement	Positive	-3.1%	Execution of $150 million Advance in Aid of Construction with first prospective client.

Pattern Detected

Recent FRMI news has been largely constructive (financing, contracts, project milestones), yet price reactions have skewed mixed-to-negative, with more divergences than alignments.

Recent Company History

Over the past month, Fermi America reported several project-building milestones for its 11 GW Project Matador campus. These include a $150 million AIAC with its first prospective client, discussions for $4+ billion in project financing, and an Electric Service Agreement securing up to 200 MW from SPS. The current hybrid cooling MOU follows this pattern of infrastructure and de-risking updates. Historically, similar constructive news saw both positive and negative price reactions, indicating inconsistent alignment between operational progress and short-term trading.

Market Pulse Summary

This announcement details a non-binding MOU to engineer hybrid dry–wet cooling towers for Fermi Amer...

Analysis

This announcement details a non-binding MOU to engineer hybrid dry–wet cooling towers for Fermi America’s 11 GW Project Matador campus, supporting 6 GW of gas generation and four AP1000 nuclear units. It emphasizes water conservation via closed-loop and reclaimed-water strategies and targets initial construction in January 2026, with completion by 2034. In context with recent power and financing agreements, it underscores long-term execution and environmental stewardship as key themes to monitor.

Key Terms

hybrid dry–wet cooling towers, memorandum of understanding (MOU), combined-cycle natural gas generation, closed-loop systems

4 terms

hybrid dry–wet cooling towers technical

"Agreement initiates the design and development of hybrid dry–wet cooling towers"

A hybrid dry–wet cooling tower is a system that combines air-cooled (dry) and water-evaporative (wet) cooling methods to remove heat from industrial processes or power plants, switching or blending modes to match weather and demand. For investors, it matters because this design can lower water use and regulatory risk, improve plant availability in hot or dry conditions, and change both upfront costs and ongoing operating expenses—similar to a hybrid car balancing fuel and electric modes to optimize performance and efficiency.

memorandum of understanding (MOU) regulatory

"announced it has signed a non-binding Memorandum of Understanding (MOU) with MVM EGI Zrt."

A memorandum of understanding (MOU) is a written outline where two or more parties describe their shared intentions, key terms and roles for a proposed deal without forming a full binding contract. For investors it acts like a concrete handshake: it signals the seriousness and likely direction of partnerships, mergers or supply arrangements, helping assess the probability, timing and potential impact of future agreements on a company’s value.

combined-cycle natural gas generation technical

"support both of Project Matador's 6 gigawatts of combined-cycle natural gas generation"

A combined-cycle natural gas generation plant produces electricity by running a gas turbine and then using the turbine’s hot exhaust to make steam that drives a second turbine, squeezing more power from the same fuel—like using a car’s waste heat to run a second engine. Investors care because this setup is more fuel-efficient and cleaner than simple gas plants, which can mean lower operating costs, better profit margins, and greater competitiveness amid fuel price swings and emissions rules.

closed-loop systems technical

"By relying primarily on air cooling and circulating water through closed-loop systems"

A closed-loop system is an automated medical device that continuously measures a patient’s condition with sensors and automatically adjusts therapy without needing manual input—think of it like a thermostat that senses temperature and turns heating on or off to keep a room comfortable. For investors, these systems can mean stronger market potential and recurring revenue because they offer improved outcomes, convenience and differentiation, but they also face higher regulatory scrutiny and development costs that affect commercial risk and valuation.

AI-generated analysis. Not financial advice.

• Agreement initiates the design and development of hybrid dry–wet cooling towers, leveraging an existing, proven design platform to prioritize air-based cooling and dramatically reduce water use compared to conventional systems
• Collaboration enables closed-loop circulation, minimizing evaporation and ensuring good stewardship of the region's water resources
• Delivering on promises made, the MOU reinforces Fermi's commitment to put water conservation at the core of the project's cooling strategy from day one

AMARILLO, Texas, Dec. 1, 2025 /PRNewswire/ -- Fermi America™ (Nasdaq: FRMI), in partnership with the Texas Tech University System, today announced it has signed a non-binding Memorandum of Understanding (MOU) with MVM EGI Zrt., one of the world's leading hybrid dry–wet cooling innovators, to engineer and develop a next-generation cooling system for Fermi's 11-gigawatt private energy grid campus. The agreement marks a major step forward in delivering reliable, clean energy at scale, while being good stewards of the region's natural resources.

Under the non-binding MOU, Fermi America and MVM EGI will partner on preliminary engineering, and feasibility studies for a series of indirect hybrid cooling towers that will support both of Project Matador's 6 gigawatts of combined-cycle natural gas generation and four AP1000 nuclear units. Leveraging an existing, proven hybrid cooling design, the partnership will adapt and optimize the system for West Texas conditions. Together, the companies will define cooling requirements, evaluate tower configurations, assess site and height constraints, and model the water-saving performance that hybrid cooling can deliver at scale.

This early engineering work lays the foundation for the campus's long-term cooling strategy. The MOU outlines a sequence of milestones—including requirements definition, concept validation, and feasibility assessment—that will lead to a detailed design. Construction of the first cooling tower is scheduled to begin in January 2026, with the full cooling system completed by 2034 to match the phased build-out of the gas and nuclear units.

These hybrid towers represent a major advancement in responsible energy development. By relying primarily on air cooling and circulating water through closed-loop systems, the design sharply reduces evaporative loss, conserving precious water resources. The collaboration also includes evaluation of recycled and reclaimed water, as well as underground reservoirs and solar-covered retention ponds—technologies that further limit evaporation and protect the Ogallala Aquifer.

"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," stated Fermi America Co-Founder and CEO Toby Neugebauer. "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."

"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," added MVM EGI P.L.C. CEO Péter Kárpáti. "We are pleased to partner with Fermi America, the world's largest private utility, to ensure efficient and responsible cooling of their gas generation and nuclear power in the panhandle of Texas in line with our motto: Less water, more power."

The collaboration reflects both companies' commitment to transparent, community-oriented development. With billions of dollars in investment and a 99-year lease with the Texas Tech University System, Fermi America's business model is directly tied to the health of the Panhandle and the long-term sustainability of the Ogallala Aquifer. The MOU reinforces that alignment by putting water conservation at the core of the project's cooling strategy from day one. 

For media inquiries, please contact:
Lexi Swearingen
Media@FermiAmerica.com

About Fermi America
Fermi America™ (Nasdaq: FRMI) (LSE: FRMI) (https://fermiamerica.com/) is pioneering the development of next-generation private electric grids that deliver highly redundant power at gigawatt scale, required to create next-generation artificial intelligence. Co-founded by former U.S. Energy Secretary Rick Perry, and Co-founder and former Co-Managing Partner of Quantum Energy, Toby Neugebauer, Fermi America™ combines cutting-edge technology with a deep bench of proven world-class multi-disciplinary leaders to create the world's largest, 11 GW next-gen private grid. The behind-the-meter Project Matador campus is expected to integrate the nation's biggest combined-cycle natural gas project, one of the largest clean, new nuclear power complexes in America, utility grid power, solar power, and battery energy storage, to deliver hyperscaler artificial intelligence.

About the Texas Tech University System    
Established in 1996, the Texas Tech University System is one of the top public university systems in the nation, consisting of five universities – Texas Tech University, Texas Tech University Health Sciences Center, Angelo State University, Texas Tech University Health Sciences Center El Paso and Midwestern State University.  

Headquartered in Lubbock, Texas, the TTU System is a more than $3 billion enterprise focused on advancing higher education, health care, research and outreach with approximately 21,000 employees and 64,000 students, more than 400,000 alums, a statewide economic impact of $19.2 billion and an endowment valued at $3 billion. In its short history, the TTU System has grown tremendously and is nationally acclaimed, operating at 20 academic locations in 16 cities (15 in Texas, 1 international).    

In addition, the TTU System is one of only nine in the nation to offer programs for undergraduate, medical, law, nursing, pharmacy, dental and veterinary education among other academic areas.    

Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategy, future operations, financial position, prospects, plans and objectives of management. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "will be," "will likely result," "should," "expects," "plans," "anticipates," "could," "would," "foresees," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook," or "continue" or the negative of these words or other similar terms or expressions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions, and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Our results could be materially different from our expectations because of various risks.

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SOURCE Fermi America

FAQ

What did Fermi America (FRMI) announce about cooling for Project Matador on December 1, 2025?

Fermi America announced a non-binding MOU with MVM EGI to engineer hybrid dry–wet cooling towers for its 11-gigawatt campus, starting preliminary work and feasibility studies.

When will construction of the first cooling tower for FRMI's Project Matador begin?

Construction of the first cooling tower is scheduled to begin in January 2026.

What is the target completion date for the full cooling system at FRMI's campus?

The full cooling system is targeted for completion by 2034 to align with phased gas and nuclear build-out.

How much generation will the hybrid cooling system support at FRMI (Nasdaq: FRMI)?

The system will support Project Matador's 6 GW of combined-cycle gas generation and four AP1000 nuclear units within an 11 GW campus.

Does the FRMI announcement include quantified water-saving estimates for the hybrid towers?

No; the announcement says the partners will model water-saving performance but does not provide specific water-savings figures.

What water-conservation features will FRMI and MVM EGI evaluate for the cooling design?

They will evaluate air-based closed-loop cooling, recycled/reclaimed water, underground reservoirs, and solar-covered retention ponds to limit evaporation.