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Fermi, a data center real estate investment trust co-founded by former U.S. Energy Secretary Rick Perry, has increased its U.S. IPO to USD 715 million, selling 32.5 million shares at USD 18-22 each, compared with the previous target of 25 million shares. The increase reflects growing energy infrastructure needs for AI development by companies such as OpenAI and Anthropic. Fermi plans to develop a large energy and data complex powered by nuclear, natural gas, and solar energy. Despite a USD 6.4 million loss since inception, investor interest in AI-related infrastructure remains high.
Fermi has announced an upsized U.S. initial public offering, aiming to raise USD 715 million by offering 32.5 million shares at prices ranging from USD 18 to USD 22. This is higher than the company's initial plan to sell 25 million shares. The increase highlights growing demand for energy infrastructure needed to support artificial intelligence development, especially for companies building large language models like OpenAI and Anthropic. These companies have recently entered partnerships worth hundreds of billions of dollars with technology and cloud firms, including Oracle, SoftBank, and CoreWeave. Advertisement
Co-founded by former Energy Secretary Rick Perry, Fermi is positioning itself as a major player at the intersection of AI and energy. The company plans to build one of the world's largest energy and data complexes, integrating nuclear, natural gas, and solar power to provide reliable, large-scale energy for data centers. Since its inception, Fermi has recorded a USD 6.4 million loss through mid-year and does not expect to generate revenue within the next 12 months. Despite this, investor interest in the IPO indicates strong confidence in infrastructure companies supporting AI, even while most AI leaders remain privately held.
The IPO will be managed by UBS, Evercore, Cantor, and Mizuho as joint lead book-running managers. Fermi will list on both the Nasdaq and London Stock Exchange under the ticker symbol 'FRMI.' Comparatively, Nvidia-backed AI cloud provider CoreWeave has seen its shares more than triple since its March IPO, demonstrating strong investor appetite for companies at the center of AI growth.
Source Reuters
5th Jun, 2025
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