11th Nov 2025 12:34
(Alliance News) - Fermi Inc on Tuesday said it began on-site construction at its Project Matador campus in the third quarter, as the company reported a "fortified" cash balance from its initial public offering.
The Amarillo, Texas-based real estate investment trust, which focuses on data centres, reported a loss from operations of USD43.5 million between January 10 and September 30.
Fermi's net loss during this period was USD353.2 million, which it attributed to non-cash charges, including a USD173.8 million contribution "to a donor-advised fund at Dechomai Asset Trust," a US-registered non-profit.
The company's cash balance stood at USD183.0 million at September 30, excluding the net proceeds from Fermi's IPO.
Having kicked off trading on both the Nasdaq and the London Main Market in early October, Fermi said it raised USD785 million in gross proceeds, inclusive of the underwriters’ full 15% over-allotment option.
Fermi said it expects to use the IPO proceeds to accelerate the construction of the Matador campus, which the company intends to make into one of the world's largest clean natural gas projects.
Matador's 99-year lease with Texas Tech University commenced in September, with geotechnical work also beginning in the third quarter. Fermi's near-term roadmap includes the construction of phase one facilities, procuring and installing equipment and power infrastructure, and team expansion and execution capacity.
The company said it is on track for one gigawatt of "clean, reliable power" to go online by the end of 2026, which it then hopes to push to 11 gigawatts over the following decade.
Fermi said: "Throughout the fall of 2025, Fermi America reached several important milestones as we build what we believe will be the world’s largest private grid in the Texas Panhandle, dedicated to supporting next-generation artificial intelligence at scale."
"There are many challenges ahead, but we are building on a strong foundation that began with a clear vision, and layered in key partnerships, strategic hires, long lead-time hard assets, regulatory momentum, and a fortified financial position," the company added.
Shares in Fermi fell 1.0% to USD25.14 on Tuesday afternoon in London.
By Roya Shahidi, Alliance News reporter
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