Energy Transfer to Deliver Firm Gas for Fermi’s HyperGrid AI Project in Texas

The interconnection project is set to begin service in early 2026, expanding Energy Transfer’s midstream role in fueling digital infrastructure.

(P&GJ) — Energy Transfer has signed an agreement to deliver firm natural gas supply to Fermi America’s HyperGrid™ campus, an AI-powered energy development near Amarillo, Texas.

Fermi America, which is developing what it calls the world’s largest behind-the-meter private grid campus in partnership with the Texas Tech University System, said the supply deal ensures reliable fuel to generate up to 2 GW of power for artificial intelligence data center operations.

Under the agreement, Fermi will interconnect with Energy Transfer’s nearby pipeline south of the campus, allowing direct access to firm natural gas supply with minimal capital investment. The interconnection is expected to be in service by the first quarter of 2026.

“What makes our Amarillo campus one of the top sites in the country for other clean sources of energy is that it was first an elite natural gas site,” said Toby Neugebauer, Fermi America Co-Founder and CEO. “This agreement with Energy Transfer secures the firm natural gas supply necessary to generate our first two gigawatts of clean, reliable power for our AI data center customers.”

The partnership builds on Energy Transfer’s extensive U.S. pipeline network — spanning 140,000 miles across 44 states — and aligns with Fermi America’s goal to bring its previously secured gas-fired generation assets online to support rapid growth in AI energy demand.