Fermi AI data center facing challenging finances
A highly promoted AI data center project in Amarillo linked to former Texas Gov. Rick Perry is facing renewed uncertainty after the loss of a major investor and a sharp decline in market value.
The project, developed by Fermi Inc., reportedly lost a $150 million funding commitment tied to its Fermi AI and data center campus, triggering a steep selloff in company shares. Reports indicate the company’s stock has fallen between 33% and 46%, wiping out billions in market value as investors reassess the outlook for large-scale AI energy infrastructure developments.
The setback comes as Perry, who also served as U.S. Energy Secretary during the first Trump administration, has publicly supported the project’s vision of combining massive power generation with advanced artificial intelligence infrastructure.
Loss of anchor tenant disrupts Amarillo AI project
The Fermi AI project in Amarillo, also referred to as Project Matador, reportedly lost what was described as a “first-investment-grade tenant.” The tenant canceled a Nov. 4 agreement that would have advanced $150 million to help fund construction of the $682 million development.
According to PR Newswire, investors reacted sharply after Fermi disclosed the termination of the funding agreement.
“On December 12, 2025, investors in Fermi Inc. (NASDAQ: FRMI) saw the price of their shares crater about 33% after the company revealed that a prospective anchor tenant terminated an agreement that would have advanced $150 million to help fund construction,” the report stated.
Shares continued to slide following the disclosure, with losses extending to as much as 46% by Friday. The decline adds to a broader selloff that has seen the company lose more than two-thirds of its market value since October, despite having not yet generated revenue.
Rendering of the Fermi America™ Private HyperGrid™ Campus
Investors reassess AI energy and data center financing risks
As GuruFocus reported, analysts and investors are increasingly reassessing the outlook for Fermi Inc. following the loss of the key tenant tied to its AI-powered data center campus in West Texas.
The development has reinforced skepticism around the so-called AI energy gold rush, particularly whether developers can convert early interest into binding, long-term contracts. Fermi has been among the most closely watched companies in the sector, touting plans to build what it has described as the world’s largest private grid for a data center campus.
The proposed campus would reportedly consume more than twice the electricity used by New York City, raising concerns among investors about financing risk, demand certainty, and whether capacity additions are outpacing confirmed customer commitments.
Project Matador vision remains publicly promoted
Despite the investor setback, Fermi’s website continues to promote its long-term vision for Project Matador, developed in partnership with Texas Tech University System.
“With the Texas Tech University System, we are answering President Donald J. Trump’s call to deliver global energy and AI dominance,” the company stated, outlining plans to include new nuclear power, large-scale natural gas generation, grid power, solar energy, and battery storage.
As of this week, the company’s public materials made no reference to the loss of the $150 million funding source, even as market volatility continues to reshape investor expectations for large-scale AI data center projects across the U.S.