When you see a business headline shouting about a brand-new company, backed by a former U.S. Energy Secretary, aiming for a $13 billion valuation, it’s worth paying attention. Fermi, a real estate investment trust (REIT) started in January 2025 by Rick Perry (the former Energy Secretary and long-time Texas governor), is in a race to create the world’s biggest hybrid energy and data complex. This comes at a time when Wall Street is showing a huge interest in AI-driven infrastructure.
Introduction:
The Business, The Hype, and What’s Really at Stake
I remember having dinner last spring with a venture investor in Austin. While we were eating barbecue, he mentioned an interesting idea: The next big thing isn’t just building data centers, it’s controlling the energy and AI that powers them. At the time, it sounded like a mix of Silicon Valley craziness and Texas confidence. Now it’s September 2025, and Fermi is putting that idea to the test. They’ve filed for a $550 million IPO and have a huge development plan that everyone in real estate and tech finance is talking about.
Fermi’s Big Idea: Combining AI, Energy, and Real Estate
Fermi isn’t like other REITs. They’re building on 5,236 acres leased from Texas Tech University in Amarillo, and their main project, called Project Matador, combines:
Large-Scale Data Centers: These are designed for big AI companies, with a goal of reaching 11 gigawatts of capacity by 2038. Their first one-gigawatt campus should open by the end of 2026.
Multiple Energy Sources: Fermi plans to use nuclear (including small modular reactors), natural gas, and solar energy. This will give them a mix of energy sources, lower costs, and protect them from grid problems.
Private, Reliable Grid: By having their own energy system, Fermi hopes to offer very reliable power, which is important for businesses and AI that need constant uptime.
Most REITs just lease out server space, but Fermi is betting that by controlling both the energy and the infrastructure, they can create huge value in an AI-driven world.
IPO Details: How Fermi Plans to Get and Use Money
Fermi’s IPO will offer 25 million shares at $18–22 each, with the goal of raising up to $550M and reaching a $13.16B valuation. The shares are expected to trade on Nasdaq and the London Stock Exchange under the symbol FRMI.
Bookrunners: The main companies handling the IPO are UBS, Evercore ISI, Cantor, and Mizuho.
How the Money Will Be Used: The money raised will go towards equipment, building data center powered shells, and setting up the energy infrastructure.
Macquarie, a major global infrastructure investor, invested $100 million in Fermi this year, which is a good sign for other investors.
The Business Case: Why Fermi and Why Now?
Increasing Demand
The biggest AI and cloud companies are in a race to get more computing power. Training the next big AI model requires a lot of stable, clean energy. Existing data centers are struggling to keep up.
Clean Energy and Policy Support
Fermi is launching at a good time, with changes happening in U.S. energy policy. Recent initiatives have sped up nuclear permitting and private energy development. By focusing on nuclear and hybrid energy sources, Fermi hopes to attract top companies that want to reduce their carbon footprint.
Location
Texas is a major energy hub in the U.S. By being located in Amarillo, Fermi benefits from:
Low land costs
Partnerships with universities
Simplified energy permits and business-friendly tax policies
Experience: Risks and Lessons from Data Centers
A data center analyst in Houston said, “Every data center project depends on power. If Fermi can deliver reliable power, they’ll be more than just a landlord they’ll be an AI utility.” However, there are concerns too. Big projects can face problems, such as nuclear delays and budget issues.
For example, some data center REITs in the U.S. saw their valuations rise after signing deals with big companies, but some struggled when construction was delayed or energy reliability became an issue.
The Challenges: What Fermi Needs to Overcome
Execution Risk: The company is only nine months old, hasn’t generated revenue yet, and reported a $6.4 million loss through June. Turning their vision into contracts and cash flow will be important.
Tech Gamble: Nuclear energy is clean but has high regulatory and lead-time risks, even with newer technologies and strong partners.
Tenant Pipeline: Fermi hasn’t announced any major tenants as of the IPO, which makes early revenue uncertain.
Valuation: A $13B valuation for a company with no revenue and still in the planning stage is ambitious. Investors need to consider the potential for future cash flow against the risk of delays.
Analyst Opinions: What Experts Are Watching
Experts have different views. Matt Kennedy of Renaissance Capital said, “AI is a major investment opportunity, but Fermi is still just a concept. It will be interesting to see how much investors are willing to pay for it.”
At the same time, there is genuine interest from investors in data infrastructure that is connected to power sources. Companies like CoreWeave, WhiteFiber, and Ambiq Micro have all raised money this year in large, successful deals.
Best Practices for Investors Considering Fermi
Review Contracts: Pay attention to announcements about tenant agreements and power purchase deals.
Assess Energy Sources: How balanced and reliable are their nuclear, gas, and solar mix, and what are the local regulations?
Follow Build-Out Progress: Permitting, construction, and modular build progress will show how quickly they can turn their plans into revenue.
Evaluate Leadership: Rick Perry’s political experience is helpful, but the management team’s ability to deliver results is what really matters.
Key Points: Fermi and the Future of AI Infrastructure
Fermi’s IPO shows the excitement and risks in the AI-driven commercial real estate market. Their goal is ambitious: combining energy, AI, real estate, and the grid in one large project in Texas. This project will likely change how big companies, infrastructure investors, and tech REITs think about value, risk, and control in the digital economy.
Are you watching Fermi’s IPO? Share your thoughts in the comments or talk to a real estate or energy finance advisor for more information on this new type of REIT.
