Rick Perry-backed Fermi's $13B AI data center REIT: dual-listed IPO, 11 GW Texas HyperGrid, nuclear-backed campus

24 September 2025

Rick Perry's $13B AI Data Center REIT: 2025 Analysis, Buildability, and What It Means for Your Pipeline

Fermi, a Texas REIT co-founded by former U.S. Energy Secretary Rick Perry, is pitching one of the most ambitious AI data center campuses ever proposed. The plan ties large-scale on-site generation (advanced nuclear, natural gas, solar, batteries) to a 5,200+ acre campus in Amarillo under a 99-year land lease with Texas Tech University.

The company is targeting a ~$13.16B valuation in a dual IPO on Nasdaq (FRMI) and the London Stock Exchange. It's pre-revenue, development-stage, and asking public markets to fund early construction.

The project at a glance

• Structure: Texas-based REIT focused on AI-grade data centers with dedicated on-site generation.
• IPO terms: ~25M shares at $18-$22 to raise ~$550M; dual listing on Nasdaq and LSE; underwriters include UBS, Evercore, Cantor Fitzgerald, Mizuho.
• Scale: "HyperGrid" Project Matador aiming for up to 11 GW by 2038; 1 GW targeted online by end of 2026.
• Site: Amarillo, TX; 5,200+ acre campus on a ~5,800-acre, 99-year lease with Texas Tech University.
• Energy stack: Advanced modular nuclear (Westinghouse collaboration for four units), natural gas turbines, solar, battery storage.
• Status: Founded January 2025; no revenue; ~$6.4M accumulated loss through June 30, 2025; initial permits filed; nuclear license path in progress.
• Capital so far: ~$350M in August 2025 (Series C equity + credit facility led by Macquarie); IPO proceeds to fund powered shells and equipment.
• Customers: No signed tenants yet; "advanced discussions" with AI developers and cloud firms.

Why this matters to real estate and construction

Fermi is compressing utility-scale energy and hyperscale data into one site. For owners, GCs, and subs, this is a multi-decade workstream built around long-lead equipment, high-spec MEP, and complex interconnection.

If the model sticks, expect more projects where generation and compute are co-developed behind the meter to relieve grid bottlenecks. That shifts risk, contract structure, and sequencing compared with conventional colo builds.

2025 market context: AI demand with a reality check

AI infrastructure demand is big, but 2025 injected volatility. A cheaper AI training method rattled expectations; NVIDIA dropped 17% in a day, and leading data center REITs wobbled.

Even so, established players posted strong 2023-2024 returns and entered 2025 at premium multiples, reflecting scarce capacity and strong tenant appetite. Recent IPOs like CoreWeave (high growth, high debt) and WhiteFiber show demand for pure-play infrastructure, with swingy outcomes tied to execution and financing.

Execution risks to price into bids and contracts

• Revenue risk: No signed tenants yet; phasing needs to match anchor commitments.
• Financing risk: IPO proceeds are a start; the 11 GW plan needs multi-billion follow-on capital. High rates raise carrying costs.
• Long-lead equipment: Transformers, switchgear, UPS, chillers, turbines, nuclear components with extended lead times.
• Permitting: Nuclear approvals are rigorous; environmental and local permits must align with schedule.
• Schedule clauses: Hyperscaler contracts often include outs if delivery slips; delays can trigger churn.
• Interconnection: Behind-the-meter plus any grid ties require early, coordinated design and approvals in Texas.
• Labor and QA/QC: Specialized trades, welding procedures, nuclear-grade documentation, and commissioning discipline.
• Supply chain: Secure dual-sourcing and spares; logistics for heavy equipment to Amarillo.
• Weather and resilience: Design for heat, wind, and grid events; N+ redundancy across energy and cooling.

What Fermi has already signaled on build sequence

• 2025: Financing in place; early permits filed; gas turbines reportedly procured for the first 1 GW.
• 2026 target: Energize ~1 GW using gas/solar/battery while nuclear units advance through licensing and early works.
• Nuclear track: Collaboration with Westinghouse for four modular reactors; parallel development to later phases.
• Data halls: "Powered shells" first, then fit-outs aligned with tenant specs.

Actions for owners, GCs, and subs

• Pre-qualify for hyperscale-grade MEP, critical power, and industrial EPC scopes; assemble JV benches now.
• Lock in transformer, switchgear, generator, and chiller capacity with supplier MOUs; target alternate SKUs to reduce risk.
• Stand up modular and prefab playbooks for electrical rooms, battery containers, and cooling skids to compress schedule.
• Secure workforce pipelines with trade schools and traveling crews; plan per diem, housing, and retention.
• Use phased NTPs tied to financing and tenant milestones; embed LDs/incentives and clear change-order governance.
• Coordinate early on water rights, make-up water systems, discharge, and fiber routes.
• Stand up nuclear-grade QA/QC and document control if bidding related scopes.

Investor view: How it compares

• Vs. established REITs (DLR, EQIX): Proven cash flows and dividends versus Fermi's early-stage higher-upside/higher-risk profile.
• Vs. tech stocks (NVDA, MSFT, AMZN, ORCL): Diversified, profitable giants with diluted pure-play effect versus Fermi's single-asset bet.
• Vs. infrastructure/utility plays: Fermi is closer to a venture-style infra build with market-based returns, not a regulated yield.

Position sizing should reflect that this is a speculative slot until tenants, financing, and first-gigawatt operations are proven.

Milestones to watch in 2026-2027

• Department of Energy loan decision and terms.
• EPC awards for energy, civil, and data hall packages; notice to proceed dates.
• Site mobilization, turbine installation, and first energization toward the 1 GW target.
• Anchor tenant lease announcements and prepayments, if any.
• Nuclear licensing milestones and early works progress.
• Follow-on capital raises or strategic partnerships with cloud/AI buyers.
• IPO lock-up expiry and insider activity timing.

Practical due diligence checklist

• Lease terms, title, and any use restrictions with Texas Tech University.
• Water sourcing, discharge permits, and redundancy plans.
• Texas grid interconnection status and any curtailment exposure for supplemental ties.
• Geotech, wind, and extreme heat design criteria; site logistics for heavy loads.
• Tax abatements, incentives, and compliance conditions.
• Environmental reviews, wildlife/habitat considerations, and mitigation plans.
• Insurance program for construction and operational risk, including nuclear-related scopes.
• Decommissioning, salvage, and end-of-life planning for energy and data assets.

Bottom line for builders and developers

Fermi is a moonshot with real construction heft. If it lands the first 1 GW on time and signs blue-chip tenants, it could open a long runway of repeatable phases and steady package awards.

Get prepped now: vendor slots, modular strategies, and risk-sharing contracts will decide who wins early scopes. Execution discipline will decide who stays for Phase 2 and beyond.

Sources and further reading

• Reuters: Fermi targets ~$13B valuation in US IPO (Sept 24, 2025)
• S&P Global Market Intelligence: Digital Realty and Equinix ramp data centers (June 2025)

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