Fermi America Executes Electric Service Agreement with Southwestern Public Service Company, a Subsidiary of Xcel Energy, Securing Up to 200 MW of Power
Fermi America (NASDAQ:FRMI) signed a definitive Electric Service Agreement with Southwestern Public Service Company, a subsidiary of Xcel Energy (NASDAQ:XEL), to secure up to 200 MW of electrical capacity for Fermi's 11 GW Project Matador Campus in Amarillo.
Rhea-AI Summary
Fermi America (NASDAQ:FRMI) signed a definitive Electric Service Agreement with Southwestern Public Service Company, a subsidiary of Xcel Energy (NASDAQ:XEL), to secure up to 200 MW of electrical capacity for Fermi's 11 GW Project Matador Campus in Amarillo.
Under the ESA SPS will begin delivering 86 MW in January 2026, with deliveries ramping to 200 MW over time via SPS's 115-kilovolt transmission system to support large-scale AI and computing operations.
Positive
- Signed definitive ESA securing up to 200 MW capacity
- Immediate supply: 86 MW begins January 2026
- Supports 11 GW Project Matador Campus power needs
- Delivery over SPS 115-kV transmission system
Negative
- Initial delivery is only 86 MW, below the 200 MW eventual capacity
Details
News Market Reaction – XEL
On Dec 8, the first trading day after this news, XEL closed 1.88% below the previous close.
Data tracked by StockTitan Argus for the Dec 8 session.
Key Figures
- ESA capacity
- up to 200 MW
- Electric Service Agreement with SPS/Xcel for Project Matador Campus
- Initial capacity
- 86 MW
- Capacity delivery starting January 2026 under ESA
- Campus scale
- 11 GW
- Fermi Project Matador Campus total planned capacity
- Transmission voltage
- 115 kilovolt
- SPS high‑voltage transmission system delivering power
- Current price
- $77.18
- Pre‑news close vs 52‑week range $62.58–$83.01
Historical Context
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Named Bria Shea president for Upper Midwest operating company.
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Announced timing and access details for Q3 2025 earnings call.
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Agreements in principle to settle Marshall Fire litigation with insurance support.
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Strong Q2 2025 EPS and revenue growth; reaffirmed 2025 earnings guidance.
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Board declared quarterly dividend of $0.57 per share on common stock.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
electric service agreement financial
megawatts technical
kilovolt technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Under the terms of the ESA, and applicable tariffs, Xcel Energy's SPS subsidiary will begin delivering 86 MW of electrical capacity in January 2026, eventually ramping up to 200 MW.
"This agreement is yet one more example of Fermi transforming intent into execution, with the strong commercial and technical support of our friends at Xcel Energy," said Larry Kellerman, Chief Power Officer of Fermi America. "Securing reliable and cost-effective power from Xcel Energy today and working together with them to grow our relationship over time is a key component of Fermi's plans."
"Partnering with Xcel Energy helps demonstrate that reliable, large-scale energy for artificial intelligence can be developed on time and on budget," said Toby Neugebauer, Co-founder and CEO of Fermi America.
The ESA provides up to 200 megawatts of power to Fermi's Project Matador Campus in
"Xcel Energy is focused on meeting the growing energy needs of the Texas Panhandle and is pleased to work with Fermi America on this project," said Adrian Rodriguez, president, Xcel Energy Texas –New Mexico.
About Fermi America
Fermi America™ (Nasdaq & 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
About Xcel Energy
Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy. We are committed to leading the clean energy transition, meeting our customers' need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives. Headquartered in
Forward-Looking Statements
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