Fermi America, in partnership with the Texas Tech University System, has signed a non-binding memorandum of understanding (MoU) with MVM EGI Zrt, a prominent company in hybrid dry–wet cooling innovation, to engineer and develop a next-generation cooling system for Fermi's 11GW private energy grid campus. The agreement is being called a major step forward in delivering reliable, clean energy at scale, while demonstrating ‘good stewardship’ of the region's natural resources.
Under the MoU, Fermi America and MVM EGI will partner on preliminary engineering, as well as feasibility studies for a series of indirect hybrid cooling towers that will support Project Matador's 6GW of combined-cycle natural gas generation and four AP1000 nuclear units.
Making use of a proven hybrid cooling design, the partnership will adapt and optimise the system for West Texas conditions. Together, the two 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' 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 buildout of the gas and nuclear units.
By relying primarily on air cooling and circulating water through closed-loop systems, the design sharply reduces evaporative loss, thereby conserving 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.
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.
