Fermi America, a company founded by former Energy Secretary Rick Perry aiming to build one of the world’s largest data center complexes, filed for an initial public offering Monday and fleshed out details of its financing strategy, natural gas plans and push for Department of Energy loans to fuel the artificial intelligence boom.
The company, which launched in June, is under scrutiny because of the connections of its supporters and the size of its planned “HyperGrid” campus near Amarillo, Texas, which envisions a massive gas and nuclear complex. Fermi also is eyeing using solar and batteries at the 5,263-acre site on land owned by Texas Tech University. If successful, the company could set a precedent for rapid construction of power for data centers and give a jolt to the nuclear industry, a priority of the Trump administration.
In a filing with the Securities and Exchange Commission, Fermi said the site was on track to secure 1 gigawatt of power for its operations by the end of next year, including 200 megawatts through a deal with local utility Southwestern Public Service. The filing referred to the company as Fermi Inc.
“We believe the Trump Administration’s renewed focus on expedited permitting and the expansion of nuclear infrastructure in the United States presents a favorable backdrop for Fermi to replicate its business model,” the filing said. Ultimately, the company wants to generate Manhattan-size power at the complex, or 11 GW.
Fermi said it is in the “pre-approval” process with DOE’s loan office, which it is looking to “finance key components” of its energy infrastructure. The company filed an application with the Nuclear Regulatory Commission for deployment of up to four Westinghouse nuclear reactors at the site, saying initial feedback from NRC staff has been supportive. In a statement Monday, the NRC said it is exploring “innovative approaches” to environmental reviews, including through a pilot program with Fermi.
The project is initially focusing on gas to build 1 million square feet of data center capacity by the end of next year, with support from solar, batteries and grid-supplied power. The company plans to then construct a second million square feet with support from an on-site gas plant. A nuclear unit would begin operating at the site in 2032, according to the filing.
By 2038, Fermi envisions nuclear powering 56 percent of the complex, with gas at 43 percent. Most would be “behind the meter,” meaning the technology companies would draw power directly from co-located power plants.
Whether the company can get close to delivering on its promises is uncertain. “The devil is in the details,” said Joshua Rhodes, a research scientist and grid expert at the University of Texas, Austin.
“I expect something to be built. … Whether they get all the way to the 11 GW is an open question,” he said. “There’s a lot of steps,” including environmental assessments, he added.
In the filing, the company outlined multiple risk factors for its plans, including obtaining capital, ensuring a supply of gas-fired turbines, getting regulatory approvals, and having adequate materials and workers.
The first phase of the project through 2027 could require $2 billion, it said. The last large traditional nuclear reactor to come online in the U.S. was a unit of Plant Vogtle in Georgia.
Another wild card is that Fermi hasn’t generated revenue to date, and its business model is contingent on striking deals with large technology companies for power.
“Our ability to attract high-credit-quality tenants — particularly large AI developers, hyperscalers, and sovereign compute platforms — is critical to achieving scale and recurring revenues,” the filing said. “If no potential near-term tenant enters into such binding agreement with us, our planned construction and operation of Project Matador could be significantly delayed.”
Fermi said it is “actively negotiating” letters of intent with technology companies, and it is pursuing financing through state programs. It also has inked agreements with multiple companies, including an Energy Transfer affiliate for a framework to supply natural gas. Historically, the company’s financial support has come from “capital raises and equipment financings,” it said.
In August, the company announced it raised $100 million in a funding round led by Macquarie Group. UBS Investment Bank, Cantor and Mizuho are backing the IPO offering, according to a press release.
The company said the project’s proximity to Pantex, a facility operated by the Department of Energy assembling nuclear weapons, would help build its workforce.
A DOE tool?
Data centers are expected to consume growing amounts of the nation’s power as AI advances. Texas is a growing hub for the technology, particularly in Dallas, Houston and San Antonio, according to McKinsey and Co.
The IPO announcement comes as the future of DOE’s loan office is murky. Since Trump took office, DOE has not finalized any new loans and recently canceled a conditional loan for a major transmission project in the Midwest, the Grain Belt Express.
Energy Secretary Chris Wright, however, has said he sees the office as important to help support nuclear power and other administration priorities.
“It is really the most efficient tool we have in the department to help emerging energy technologies,” Wright told House lawmakers in May.
Fermi is looking to list on the Nasdaq Global Select Market. The company’s team includes leaders in investment and private equity firms, including President and Chief Executive Officer Toby Neugebauer; Chief Power Procurement Officer Larry Kellerman; and Perry’s son Griffin, who oversaw more than $1 billion in investments in U.S. shale basins at Grey Rock Investment Partners.
