Fermi Inc. (FRMI)

Fermi Inc. is a development-stage company, formed in January 2025, that is building a private power campus for AI-centric customers. It develops and plans to lease large-scale, grid-independent energy generation and high-performance computing facilities designed for hyperscale users. It has not generated revenue to date and does not expect operating revenue until it signs definitive tenant leases and begins delivering powered shells and on-site power capacity. It intends to elect REIT status beginning with its short taxable year ended December 31, 2025, and may conduct certain development, generation and service activities through taxable REIT subsidiaries.

The company's focus is Project Matador, a multi-phase campus in Carson County in the Texas Panhandle, held under a 99-year ground lease with the Texas Tech University System covering about 5,236 acres. With adjacent acreage acquired or under contract, the campus is expected to reach about 7,570 acres. It is designed for up to 11 GW of private generation, with potential expansion to about 17 GW, and up to about 15 million square feet of AI-ready compute space, with buildout planned through 2038. The planned power mix includes on-site natural gas-fired generation, supplemental grid power, battery energy storage, solar for energy displacement and longer-term nuclear baseload, starting with a 1 GW Westinghouse reactor. Equipment procured includes seven GE TM2500 mobile units, six Siemens SGT-800 turbines, three Siemens SGT6-5000F turbines and three GE 6B turbines. Phase 0 site enablement is substantially complete. Phase 1 targets initial energization, including up to 200 MW of grid power under an electric service agreement with Southwestern Public Service Company, with first tenant commissioning possible in the first half of 2027. Phase 2 targets about 2.5 GW of gas-fired capacity as soon as the end of 2028. On February 25, 2026, the company received a roughly 6 GW air permit from the Texas Commission on Environmental Quality and has applied for an additional 5 GW.

Target customers are hyperscalers and other large compute users, including cloud service providers, AI infrastructure operators, chipmakers, and governmental or quasi-governmental entities. Leases are expected to be long-term, often triple-net, with fixed monthly rent based on reserved power capacity, fixed rent on invested capital, pass-through reimbursements and possible development and administrative fees. The company may also offer ground leases to tenants that build their own facilities. Power is to be provided only to on-site tenants as an incident of tenancy, not sold to the grid. A small number of tenants may account for much of early contracted revenue. The company cites rising AI power demand, higher rack power densities, and constraints on grid capacity in markets such as ERCOT and PJM as the drivers of demand.

Site advantages cited include proximity to major natural gas-producing regions, two major fiber optic corridors meeting at the southern boundary, the Ogallala Aquifer, and proximity to the U.S. government's Pantex facility. The company plans to fund the buildout with equity, tenant-funded amounts, non-recourse or limited-recourse project-level debt through special purpose entities, tax credit monetization, strategic partnerships, and possible U.S. Department of Energy loans. Its ability to execute depends on satisfying ground lease conditions, signing binding tenant agreements, obtaining permits and raising capital.