Fermi Inc. disclosed that a prospective tenant has terminated an Advance in Aid of Construction Agreement tied to the company’s Project Matador Site, while lease negotiations continue and discussions expand to additional potential customers. The update came in a Form 8-K filed with the U.S. Securities and Exchange Commission on December 12, 2025.
The Amarillo, Texas–based company entered a non-binding letter of intent in September 2025 with an investment grade-rated tenant to lease a portion of Project Matador, followed in November by an agreement under which the tenant could advance up to $150 million to fund construction costs. Fermi confirmed that no funds were drawn under the advance agreement before its termination on December 11, 2025.
After the exclusivity period in the original letter of intent expired on December 9, 2025, Fermi began discussions with several other potential tenants for power delivery at Project Matador in 2026. The company stated that it continues to negotiate lease terms with the original tenant and reiterated confidence in its ability to meet expected power delivery timelines amid sustained demand for behind-the-meter power to support AI workloads.
- The non-binding letter of intent with the first tenant was signed on September 19, 2025
- The Advance in Aid of Construction Agreement allowed for up to $150 million in construction funding, subject to conditions
- No capital was advanced under the construction agreement before termination
- Exclusivity under the letter of intent expired on December 9, 2025
- Fermi initiated discussions with multiple additional tenants for 2026 power delivery
- Project Matador targets behind-the-meter power solutions for AI data center demand
“The Company remains confident that it will be able to meet its expected power delivery schedule at Project Matador as the demand for behind-the-meter power for AI remains robust over the near and long term,” Fermi stated in an SEC filing.
🌐 Analysis Fermi Inc. (Nasdaq: FRMI), formally launched in early 2025 and co-founded by former U.S. Energy Secretary and Texas Governor Rick Perry alongside Toby Neugebauer, structures its business as a real estate investment trust (REIT)focused on building one of the world’s largest integrated AI data center and power infrastructure campuses dubbed Project Matador near Amarillo, Texas. The company’s core strategy combines long-term data center leasing with on-site energy generation — including natural gas, solar, wind, and planned nuclear reactors — to deliver highly reliable, behind-the-meter power directly to compute-intensive tenants that conventional utilities cannot easily serve, targeting up to 11 GW of capacity once completed. Fermi gained substantial attention — and capital — in 2025 through its IPO on Nasdaq and a dual listing on the London Stock Exchange, raising roughly $682 million at a valuation of about $15–$19 billion and securing partnerships such as a 99-year ground lease with the Texas Tech University System and energy supply agreements including a natural gas pipeline connection and turbine LOIs with Siemens Energy. The company also ordered multiple nuclear reactors intended to anchor its power grid build-out and pursued regulatory approvals for major generation assets, while publicly negotiating with hyperscale tenants and navigating market volatility.
