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Fermi, a Texas-based REIT co-founded by Rick Perry, raised USD 682.5 million in its U.S. IPO, selling 32.5 million shares at USD 21 each and achieving a valuation of USD 12.46 billion. The company is developing a large AI data center campus powered by nuclear, solar, and natural gas to serve hyperscale tenants. Strong investor demand led to an increase in IPO size. While still early in operations, with a reported USD 6.4 million loss to date, Fermi aims to deliver up to 11 gigawatts of power by 2038.
Fermi, a real estate investment trust (REIT) co-founded by former U.S. Energy Secretary Rick Perry, successfully raised USD 682.5 million in its U.S. initial public offering. The Amarillo, Texas-based company sold 32.5 million shares at USD 21 each, slightly above the marketed range of USD 18-22 per share, giving it a valuation of USD 12.46 billion. The company, founded in January 2025, focuses on large-scale AI power and data center infrastructure. Advertisement
The firm is developing a massive AI data center campus in Texas that combines nuclear, natural gas, and solar energy to provide dedicated power for hyperscale tenants. These tenants require significant computing and data storage capacity, and Fermi aims to create what it describes as the world's largest energy and data complex.
Investor interest in the IPO was strong, prompting the company to raise the offering from an initial 25 million shares to 32.5 million. Analysts noted the high demand for AI infrastructure, with similar data center operators like CoreWeave and WhiteFiber trading above their offering prices earlier this year.
Fermi plans a dual listing, with shares expected to begin trading on the Nasdaq and London Stock Exchange in early October under the ticker "FRMI." The Amarillo campus is projected to deliver up to 11 gigawatts of power by 2038, with the first gigawatt expected online by late 2026.
Despite being early in its development stage, Fermi reported a USD 6.4 million loss since inception through June 30 and does not expect to generate revenue within the next 12 months. UBS Investment Bank, Evercore ISI, Cantor, and Mizuho acted as book-running managers for the offering, guiding the company through the successful IPO process.
Source Reuters
5th Jun, 2025
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