Fermi is set to debut on the Nasdaq on Wednesday after raising $682.5 million in its IPO, a key test of market appetite for a pre-revenue data center real estate investment trust still in the early stage of its journey.
While development-stage firms have gone public before, its unusual for a company under a year old with no revenue to pursue an IPO at a $10 billion-plus valuation.
“It (Fermi’s IPO) speaks to the gold rush happening in AI infrastructure right now. It’s a cash geyser,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
Amarillo, Texas-based Fermi sold 32.5 million shares at $21 each in an upsized IPO, after marketing them between $18 and $22.
Founded in January 2025, Fermi secured a $12.5 billion valuation in the IPO, just months after issuing convertible bonds at a valuation of $3 billion.
“Demand for AI-driven infrastructure — and Fermi’s plan to pair it with its own modern power sources — has investors intrigued,” said Troy Hooper, co-head of equity capital markets, Americas, at Mergermarket. “The company’s political ties are seen as another tailwind.”
Co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry, Fermi has bold ambitions. The company is aiming to build the world’s largest energy and data complex, powered by nuclear, natural gas and solar.
BUILD IT, THEY WILL COME
Project Matador, Fermi’s flagship project, is expected to deliver 1.1 gigawatt of power by 2026 end and up to 11 GW at scale. A gigawatt of power is roughly half the Hoover Dam’s full generating capacity, according to the U.S. Department of Energy.
Last month, Fermi entered a non-binding letter of intent with its first tenant for a 20-year agreement. Still, it does not expect tenant revenue to commence until 2027.
“Any investor buying Fermi will need to have a mindset of “if you build it, they will come,” Kennedy said.
Analysts said execution will be key to sustain market enthusiasm, with investors expected to closely scrutinize signed contracts and progress on its ambitious buildout.
A successful listing could pave the way for other long-duration, capital-intensive AI infrastructure bets, according to Hooper.
Still, some caution persists.
“History offers a cautionary note: many pre-revenue IPOs during the Dot-com era and the recent SPAC boom failed to live up to the hype and ended poorly,” Hooper said.
