Transforming Data Infrastructure With On-Site Power Generation
Fermi America, co-founded by former U.S. Energy Secretary Rick Perry, has made headlines with its recent initial public offering (IPO), raising $682 million to fund an ambitious vision: the construction of one of the world’s largest data center campuses, complete with a dedicated, on-site power grid[1]. The Amarillo, Texas-based company, structured as a real estate investment trust (REIT), seeks to revolutionize how digital infrastructure supports
artificial intelligence and cloud computing workloads.
Unique Business Model: Data Centers Integrated With Power Plants
The cornerstone of Fermi America’s business model is its vertically integrated approach to data center development. Project Matador, also known as the “HyperGrid,” features on-site energy generation from a blend of natural gas, small modular nuclear reactors, and solar installations. This setup ensures that hyperscale data centers receive reliable, redundant power directly from Fermi’s facilities, bypassing the limitations of the regional power grid.
- Data center leasing: Fermi America will lease space, racks, and entire buildings to companies requiring large-scale computational capabilities—particularly those in the AI, cloud services, and semiconductor sectors.
- On-site power provision: Clients pay for a combined package of data center space and direct power, securing uninterrupted operations even during local utility outages.
This "grid-independent" offering, branded as HyperRedundant™ power, appeals to tech giants and AI labs that demand guaranteed uptime and resilient infrastructure.
Financials and IPO Details
Fermi America listed its shares on both Nasdaq and the London Stock Exchange under the ticker FRMI[1]. The IPO offered 25 million shares at $18–$22 each, leading to a company valuation of approximately $12–$13.2 billion[1]. The offering was underwritten by UBS, Evercore ISI, Cantor Fitzgerald, and Mizuho, attracting strong interest from global investors.
So far, Fermi America is pre-revenue, reflecting its development-phase status. Its cumulative net loss since founding in January stands at $6.4 million, with about $350 million already secured in pre-IPO investments. Proceeds from the IPO are earmarked to build the initial 1.1-gigawatt power infrastructure and approximately 1 million square feet of data center space by the end of 2026.
Growth Prospects and Investor Outlook
The long-term vision for Fermi America is bold: expand the Amarillo campus to host 11 gigawatts of power capacity and up to 18 million square feet of data center space by 2038. As a REIT, Fermi intends to pay regular dividends in the future, though no payouts are expected until construction progresses and the site becomes operational.
Key milestones include:
- Completion of the first data center buildings and power facilities by late 2026.
- The signing of major anchor tenants—anticipated to be AI companies and cloud service providers—once operational capacity comes online.
- Further expansion contingent on additional capital raises and tenant commitments.
Fermi America’s innovative model and massive fundraising efforts position it at the forefront of the next generation of digital infrastructure, directly supporting the explosive growth of
artificial intelligence and hyperscale computing[1].
