Fermi loses out on $150 million advance from possible tenant
Fermi Inc on Friday said it lost a funding deal with the first potential tenant of its Matador power grid, but maintained that it will complete the project on schedule.
The Amarillo, Texas-based real estate investment trust is focused on data centres. Back in September, it agreed a non-binding lease for part of the Matador facility ‘with an investment grade-rated tenant’.
Fermi and the possible tenant early last month agreed an advance in aid of construction for up to $150 million, under which no funds have been drawn.
The exclusivity period for the potential lease deal expired on Tuesday night, after which Fermi began discussions with other prospective tenants, as it continues to target first power at Matador in 2026.
On Thursday, the prospective tenant said it had terminated the AIAC. According to Fermi, a lease agreement with this tenant may still be on the table, as negotiations continue. It still targets power delivery at Matador in 2026.
‘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,’ it said.
Fermi has touted Matador as an integrated energy facility to service the needs of AI. The 11-megawatt project aims to combine nuclear, solar, gas and utility grid power with battery energy storage.
The company’s shares traded 1.0% lower at $14.75 on Friday morning in London.
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