Fermi Inc. (FRMI)

Fermi Inc. is a development-stage company formed in January 2025 that is building a large-scale, grid-independent power and hyperscale computing campus—Project Matador—located on a 99-year ground-leased site of approximately 5,236 acres (expandable to roughly 7,570 acres) in Carson County, Texas, secured through a partnership with the Texas Tech University System. The company's mission is to deliver up to 11 GW of low-carbon, reliable, on-demand power (with potential expansion to approximately 17 GW) to hyperscale and other compute-intensive customers, including cloud service providers, AI infrastructure operators, chipmakers, and enterprise or government entities, by developing and leasing powered shell data center facilities integrated with private, diversified energy generation such as natural gas-fired turbines, battery storage, solar, and longer-term nuclear baseload supply. Fermi intends to qualify as a REIT for U.S. federal income tax purposes beginning with its short taxable year ended December 31, 2025, and expects to generate revenue primarily through long-term tenant lease arrangements structured around capacity-based rent, fixed rent on invested capital, and pass-through reimbursements, along with potential ground leases for tenants that build their own facilities; certain development, generation, and service activities may be conducted through taxable REIT subsidiaries to preserve REIT status.

As of the filing date, the company has not generated operating revenue but has made substantial progress on site development, permitting (including an approximately 6 GW natural gas-fired air permit approved by the Texas Commission on Environmental Quality, with an additional 5 GW permit application pending), grid interconnection agreements with Southwestern Public Service Company (a subsidiary of Xcel Energy), procurement of long lead-time generation equipment (including GE and Siemens turbines), and negotiations with prospective tenants and financing partners. The company's development plan is organized into five phases extending through 2038, beginning with Phase 0 site enablement (largely complete), Phase 1 initial energization and campus activation (targeting first tenant commissioning in 2027), Phase 2 scaled natural gas and combined cycle expansion (targeting ~2.5 GW by end of 2028), and Phase 3 construction of nuclear generation capacity beginning with a 1 GW Westinghouse reactor. Fermi's target market is driven by surging AI and hyperscale power demand, constrained utility grid capacity (particularly in ERCOT), and increasing power density requirements of AI data centers, and the company positions itself to meet this demand through co-located, grid-independent private power generation rather than sale of power to the grid or utilities, funding its buildout through a combination of equity capital, tenant prepayments, non-recourse project debt, tax credit monetization, and potential government financing programs such as the U.S. Department of Energy's Office of Energy Dominance Financing.