Fermi Inc. announced that its first prospective tenant of Project Matador has terminated the Advance in Aid of Construction Agreement (AICA) and withdrawn a $150 million advance‑funding commitment. The termination was confirmed on December 11, 2025, and the company stated that no funds have been drawn under the agreement.
The $150 million commitment had been a cornerstone of the early‑stage financing for Project Matador, an 11‑gigawatt data‑center campus in Amarillo, Texas that will combine nuclear, natural gas, solar, and wind power to supply behind‑the‑meter electricity for AI workloads. Losing this commitment leaves a significant gap in the project’s capital stack and heightens the risk of financing shortfalls and construction delays.
Fermi’s financial profile underscores the impact of the loss. The company went public on October 1, 2025, with a valuation of $14.8 billion but had no revenue and reported negative EBITDA of $37.8 million. The termination therefore represents a material blow to a company that is still building its revenue base and relies heavily on tenant commitments to fund its ambitious infrastructure.
Management has reiterated confidence in meeting its power‑delivery schedule and its strategy to capture behind‑the‑meter power for AI workloads. The company is actively pursuing alternative tenants, but the withdrawal raises concerns about its ability to secure future revenue streams and maintain the project’s financial viability.
The event triggered a negative reaction from investors, reflecting heightened concerns about Fermi’s execution risk and the fragility of its early‑stage financing model. Analysts noted that the loss of the tenant commitment calls into question the earlier Letter of Intent and underscores the importance of binding agreements for the company’s capital requirements.
The AICA was signed on November 3, 2025, following a Letter of Intent signed on September 19, 2025. The exclusivity period for the tenant expired on December 9, 2025, just two days before the termination. The tenant’s identity remains undisclosed, and the company has not yet announced a replacement commitment.
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