Fermi (Nasdaq & LSE: FRMI) scales Project Matador with Hyundai Engineering & Construction and MUFG backing

Fermi Inc. (Nasdaq & LSE: FRMI), operating as Fermi America, has deepened its strategic partnership with Hyundai Engineering & Construction Co., Ltd. while securing a $500 million equipment financing commitment from MUFG Bank, Ltd. to advance its 11 gigawatt Project Matador energy campus near Amarillo, Texas. The combined moves position Fermi Inc. to accelerate near-term gas-fired generation deployment while progressing Front-End Engineering Design for four Westinghouse AP1000 nuclear units, a dual-track strategy aimed at restoring large-scale nuclear construction capacity in the United States.

How does Fermi Inc. plan to restart large-scale nuclear construction in the United States through Project Matador?

Fermi Inc. is framing Project Matador not simply as another power plant development, but as a test case for whether the United States can once again deliver multi-unit nuclear projects at scale. Through its collaboration with Hyundai Engineering & Construction Co., Ltd., the company is advancing Front-End Engineering Design work for four AP1000 reactors that would anchor the long-term phase of the 11 gigawatt private energy campus.

The Front-End Engineering Design process currently underway includes site layout optimization, cooling system configuration analysis, cost modeling, and schedule development. These activities are essential precursors to a potential engineering, procurement, and construction pathway and ultimately to a construction start decision. In a market where nuclear megaprojects have historically suffered from cost overruns and schedule delays, the emphasis on detailed early-stage planning is less cosmetic and more existential.

Hyundai Engineering & Construction Co., Ltd. brings execution credibility rooted in its track record of delivering multiple reactors internationally. Fermi Inc. is effectively importing an industrialized nuclear build model that has worked abroad, pairing it with Westinghouse Electric Company’s AP1000 technology, which is already licensed in the United States. The strategic logic is clear: combine proven reactor design with a contractor that has demonstrated multi-unit construction capability to mitigate the perception that large-scale nuclear is inherently unmanageable in the American regulatory and labor environment.

At a recent nuclear technology seminar in Dallas, Fermi Inc. and Hyundai Engineering & Construction Co., Ltd. convened contractors, workforce stakeholders, and supply chain participants. The signal to the market was not subtle. If Project Matador is to move forward, it will require early mobilization of skilled labor, heavy-lift capability, modular construction workflows, and disciplined adherence to nuclear construction standards. In effect, Fermi Inc. is attempting to rebuild the ecosystem required to execute, not merely the asset itself.

Why is MUFG Bank, Ltd.’s $500 million equipment facility strategically important for Fermi Inc.’s 11GW campus?

While the nuclear ambition draws headlines, the near-term operational engine for Project Matador is gas-fired generation. Fermi Inc. secured a $500 million non-recourse turbine “warehouse” facility from MUFG Bank, Ltd. to fund the acquisition of three Siemens Energy AG SGT6-5000F gas turbines, with deliveries expected as early as the first half of 2026.

The structure of the financing is as important as its size. A non-recourse facility tied to equipment acquisition allows Fermi Inc. to secure long-lead assets ahead of final project-level financing. In a tight turbine supply market driven by global data center demand and grid reliability concerns, early equipment control is a competitive advantage. It reduces timeline risk and signals seriousness to potential off-takers and institutional capital.

The proceeds will also support repayment of a pre-existing loan and enable deployment of additional turbines within Fermi Inc.’s generation fleet. Collectively, these steps are intended to secure over 2 gigawatts of controlled generation capacity in the near term. In strategic terms, Fermi Inc. is building credibility through incremental delivery rather than waiting for nuclear units to reach financial close.

MUFG Bank, Ltd.’s participation is equally notable. As one of the largest global financial groups with extensive experience in project finance across power and digital infrastructure, MUFG Bank, Ltd. is not typically in the business of underwriting speculative concepts. Its involvement suggests that the capital markets view Project Matador’s phased approach, combining gas generation with longer-horizon nuclear development, as financeable under disciplined structures.

What does the Fermi Inc. and Hyundai Engineering & Construction Co., Ltd. partnership signal about US nuclear supply chain readiness?

The United States has not built multiple large-scale nuclear reactors in parallel for decades. As a result, portions of the domestic supply chain have atrophied, and experienced nuclear construction labor is limited. By hosting contractor engagement sessions and focusing on modular construction methodologies, Fermi Inc. and Hyundai Engineering & Construction Co., Ltd. are implicitly acknowledging that supply chain and workforce rebuilding must occur well before concrete is poured.

The AP1000 design, originally developed by Westinghouse Electric Company, incorporates modular construction elements intended to streamline assembly and reduce site-based complexity. However, modular design only delivers on its promise if fabrication yards, heavy transport logistics, and quality assurance systems are aligned. Hyundai Engineering & Construction Co., Ltd.’s experience in executing multiple reactors concurrently becomes particularly relevant in this context.

For Texas specifically, the potential development of a large-scale nuclear project introduces a new industrial training cycle. Workforce development initiatives tied to Project Matador could reshape regional labor markets, particularly if paired with data center and advanced manufacturing investments that require firm, baseload power. The alignment between energy infrastructure and industrial policy is not accidental.

How does Project Matador fit into accelerating AI-driven electricity demand and data center expansion?

Both Fermi Inc. leadership and its financial partners have explicitly referenced artificial intelligence-driven load growth as a defining theme of the next decade. Hyperscale data centers, advanced semiconductor fabrication, and high-density computing facilities are increasing demand for long-duration, reliable power. Intermittent renewables alone cannot meet these requirements without significant storage or firm capacity support.

Project Matador’s 11 gigawatt vision, combining gas turbines in the near term and nuclear reactors over the longer term, is designed to address precisely that constraint. Gas turbines provide dispatchable power with relatively rapid deployment timelines. Nuclear reactors, if delivered on schedule and within budget, provide long-duration baseload capacity with low operational carbon emissions.

From an industrial strategy standpoint, the integration of a private energy campus model near Amarillo, Texas, positions Fermi Inc. to potentially co-locate generation with high-load customers. That model could mitigate transmission bottlenecks and offer power price certainty to AI and manufacturing tenants. In a market where grid interconnection delays are increasingly common, site control and early infrastructure development become differentiators.

What execution and regulatory risks could challenge Fermi Inc.’s nuclear and turbine rollout strategy?

Ambition does not eliminate risk. Nuclear construction in the United States remains subject to rigorous oversight from the Nuclear Regulatory Commission. Even with a proven reactor design such as the AP1000, schedule risk remains meaningful. Cost escalation in materials, skilled labor shortages, and supply chain disruptions can compound quickly in multi-year build programs.

On the gas generation side, turbine procurement secures hardware but does not automatically guarantee seamless integration. Interconnection agreements, environmental permitting, and fuel supply logistics must align. Moreover, as decarbonization pressures intensify, long-term reliance on gas-fired assets may face policy scrutiny, particularly if carbon capture or emissions mitigation strategies are not incorporated.

Financially, while the $500 million facility is non-recourse, scaling to an 11 gigawatt platform will require substantial additional capital. Future project-level financing will depend on execution track record, power purchase agreements, and broader capital market conditions. A misstep in early phases could tighten financing terms later.

How are investors likely to interpret Fermi Inc.’s dual-track power development strategy?

As a publicly listed entity on both Nasdaq and the London Stock Exchange, Fermi Inc. will face scrutiny not only on technical milestones but on capital discipline. Investors typically discount long-duration infrastructure projects until visible progress de-risks execution. The turbine acquisition and MUFG Bank, Ltd. financing provide tangible near-term deliverables, which may support sentiment more effectively than nuclear aspirations alone.

However, equity markets will likely demand clarity on project economics, off-take agreements, and expected returns on invested capital. If Fermi Inc. can demonstrate that early gas generation revenues underpin nuclear development without excessive shareholder dilution, investor confidence could strengthen. Conversely, cost overruns or prolonged regulatory delays could pressure valuation.

In broader industry terms, Project Matador functions as a bellwether. Success would suggest that large-scale nuclear construction in the United States can be industrialized again under modern financing structures. Failure would reinforce skepticism that the domestic market cannot execute complex reactor builds efficiently.

What are the key takeaways on what this development means for Fermi Inc., its competitors, and the US power sector?

• Fermi Inc. is pursuing a phased 11 gigawatt strategy that pairs immediate gas turbine deployment with longer-term nuclear construction to balance speed and durability.

• The partnership with Hyundai Engineering & Construction Co., Ltd. imports international nuclear execution experience into a US market that has struggled with large builds.

• Ongoing Front-End Engineering Design for four AP1000 units signals seriousness about nuclear, not merely exploratory intent.

• The $500 million non-recourse facility from MUFG Bank, Ltd. enhances equipment control and strengthens near-term execution credibility.

• Early turbine procurement positions Fermi Inc. to meet AI and data center load growth while nuclear units progress through regulatory stages.

• Supply chain and workforce mobilization efforts indicate recognition that ecosystem readiness is as critical as reactor design.

• Execution risk remains significant across regulatory approval, cost control, and integration of multi-gigawatt infrastructure.

• Investor sentiment will likely hinge on visible milestones, disciplined capital allocation, and clarity around off-take agreements.

• If Project Matador succeeds, it could reset perceptions of US nuclear viability and influence competitor strategies across large-scale baseload development.

• If it fails to meet schedule or budget targets, skepticism toward large-scale nuclear in the United States will likely intensify.