Fermi posts $486 million loss in 2025 on high data centre investment
Fermi Inc on Monday reported a substantial net loss in its first year of operations, as heavy non-cash charges and investment in its flagship AI-focused energy project weighed on results.
The Amarillo, Texas-based real estate investment trust, which focuses on data centres, reported a net loss of $486.4 million for the period from January 10 to December 31, 2025, equivalent to a loss per share of $1.13.
General and administrative expenses totalled $177.8 million over the period.
Fermi shares fell 9.9% to $5.49 in London on Monday following the results, and were down 12% at $5.46 in premarket trading in New York, giving the company a market capitalisation of $3.79 billion.
Fermi, which listed on Nasdaq and the London Stock Exchange in October, said the loss was driven largely by $441.8 million in non-cash charges.
These included $173.8 million in charitable contributions, $132.7 million in share-based compensation, and $111.6 million in fair value losses tied to financing instruments.
Cash used in operating activities amounted to $34.2 million, while investing outflows totalled $570.3 million, reflecting significant spending linked to its Project Matador development in Texas.
Financing activities generated $1.0 billion, supported by IPO proceeds and debt issuance.
At the end of December, Fermi held $408.5 million in cash and reported total assets of $1.41 billion.
The company said it has rapidly deployed capital into infrastructure, with $935 million invested in property, plant and equipment, including turbines, substations and transmission systems.
Fermi is developing Project Matador, a large-scale energy campus in the Texas Panhandle aimed at powering artificial intelligence workloads. The site spans around 7,570 acres and is designed to support more than 11 gigawatts of power generation, with potential to expand beyond 17 gigawatts.
Chief Executive Officer Toby Neugebauer said: ‘In less than one year, Fermi America achieved what few believed possible: from incorporation in January 2025 to a dual-listed initial public offering by October, we assembled the physical, financial, and regulatory foundation of what we believe will be the world’s largest private energy campus - Project Matador - dedicated to powering next-generation artificial intelligence at scale.’
Fermi said it has secured partnerships with companies including Siemens Energy, Westinghouse, Hyundai Engineering & Construction and MUFG, and has assembled around $1.8 billion in capital since inception.
Despite progress, the company has yet to secure a binding tenant for the project. It said discussions are ongoing with multiple prospective customers.
The search for an anchor tenant has not been without complications. In December, Fermi said that a $150 million advance funding agreement with an unnamed investment-grade counterparty had been terminated, although negotiations with potential tenants remain ongoing.
The company has also pushed back on reports regarding the identity of that counterparty. Following a report by Business Insider suggesting that Amazon had been the tenant involved, Fermi said it ‘categorically deny[ies]’ confirming the identity of ‘Tenant No. 1’ to the publication.
Fermi’s IPO in October raised around $745.6 million net of fees, as part of a broader fundraising effort that has drawn backing from investors including Macquarie.
The company is also associated with former republican Governor of Texas and US Energy Secretary Rick Perry, one of its founders and a major shareholder.
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