Fermi America shares fell as much as 50 percent in premarket trading after the company disclosed that its first potential tenant for the Project Matador data center campus terminated a $150 million Advance in Aid of Construction agreement, according to an SEC filing.
The lease termination affects Fermi’s President Donald J. Trump Advanced Energy and Intelligence campus in Texas, which is planned to become the world’s largest mixed-use data center. The company stated that negotiations on lease terms are continuing with the unidentified tenant and that discussions with other potential tenants remain ongoing.
Project Matador Details
The data center campus represents an 11 gigawatt facility co-founded by former Texas Governor and Secretary of Energy Rick Perry. The company has positioned hundreds of megawatts to come online at the site by the beginning of 2026 and has secured permits for 6 gigawatts of gas turbine power generation.
Fermi is also working with the Nuclear Regulatory Commission on approvals to construct four AP1000 nuclear reactors at the site. Despite these advanced preparations, the company has not yet closed a deal with a major data center developer beyond the Pentax facility.
Tenant Prospects
Fermi is targeting hyperscale customers for the campus. Palantir, a major artificial intelligence provider for government clients, has been reported to be in discussions with Fermi about occupying space at Project Matador, with a site visit expected in the near future, according to Data Center Dynamics.
Industry Challenges
Data center developers across the United States have encountered local opposition related to energy consumption and water usage concerns. Some facilities consume water volumes comparable to entire cities, leading activists to successfully petition regional authorities to block development projects.
Fermi has addressed these potential obstacles through advance permitting for power generation and securing access to millions of gallons of water per day from nearby municipalities with large aquifer resources.
Company Background
Fermi America has focused its development efforts on the Texas data center market, where demand for computing infrastructure continues to grow alongside artificial intelligence applications. The company’s Project Matador campus aims to serve large technology companies requiring substantial power and space for their operations.
