Introduction
Fermi America, a data center real estate investment trust (REIT) co-founded by former U.S. Energy Secretary Rick Perry, has taken a significant leap onto the public stage with its anticipated
Nasdaq debut following a highly successful $683 million initial public offering (IPO)[1]. The company’s innovative business strategy focuses on building ultra-large-scale data centers coupled with their own private power plants in Amarillo, Texas.
Fermi America’s Business Model
Fermi America’s vision is to establish a
hyperscale data center campus, referred to as Project Matador or the “HyperGrid.” This complex is designed to offer both leased data center space and dedicated, on-site energy generation—a combination targeting AI labs, cloud computing companies, and other organizations with massive computational requirements.
- Clients lease server space for cloud computing, AI workloads, and other data-intensive operations.
- Electricity is generated on-site through natural gas plants, nuclear reactors, and solar installations, offering a high-redundancy, “grid-independent” power solution.
- The campus is spread over 5,200+ acres leased from Texas Tech University, accommodating both power plants and large-scale data center facilities.
Future Revenue Streams
Though Fermi America is still in the development phase and has not yet reported operating revenue, its business plan hinges on two primary revenue sources[1]:
- Data center leasing: Rental of server space, racks, or entire facilities to clients, including AI model developers, cloud providers, and semiconductor companies.
- On-site power services: Supplying electricity and related utilities directly to tenants, ensuring uninterrupted computational operations even during wider grid disruptions.
These revenue streams are supported by long-term leases and power supply contracts, promising stability once the site becomes operational.
IPO Details and Financial Highlights
Fermi America’s IPO raised $683 million, valuing the company at approximately $12 billion, with potential to rise above $13 billion depending on share price performance[1]. The IPO was underwritten by major financial firms including UBS, Evercore ISI, Cantor Fitzgerald, and Mizuho.
- 25 million shares offered, priced between $18 and $22 each.
- The company had reported a net loss of $6.4 million since its inception in January 2025, reflecting early-stage development expenses.
- Pre-IPO funding included $100 million from Macquarie Group and a $250 million credit facility for power infrastructure.
Funds raised will support ongoing construction, including gas turbines, nuclear and solar equipment, and initial data center structures.
Growth Targets and Timelines
Fermi America is targeting the following milestones[1]:
- 1.1 gigawatts of self-generated power and 1 million square feet of data center space operational by the end of 2026.
- Ambitious expansion to 11 gigawatts and 18 million square feet by 2038, making it one of the world’s largest data center campuses.
REIT Structure and Investor Implications
By operating as a REIT, Fermi America plans to distribute most future income as dividends, offering tax advantages to investors. However, it clearly states that no dividend payouts are expected until its facilities are operational and generating revenue.
Conclusion
Growth Targets and Timelines
Growth Targets and Timelines
