Catenaa, Friday, December 12, 2025-Fermi shares fell by over 45% on Friday, after the developer of a private power grid for AI announced that a tenant had terminated a $150 million agreement tied to its proposed West Texas campus.
The company stated that its first investment-grade tenant terminated an Advance in Aid of Construction Agreement, effective November 4, which would have provided up to $150 million to fund construction costs, according to a filing made on Friday.
No funds had been drawn under that agreement. Fermi said it has begun discussions with several other potential electricity customers and remains on track to begin power delivery in 2026.
This reversal marks a setback for the developer, co-founded by former Texas governor and US Energy Secretary Rick Perry, which was formed earlier this year to build what it has described as the world’s largest private power grid for an AI campus.
Fermi surged after going public amid a scramble to supply electricity to massive data centers, a buildout the Trump administration has framed as a national security and economic priority in competition with China.
At the same time, concerns have grown about a potential bubble in AI-related infrastructure, with Fermi facing intensifying competition from other developers pursuing similar projects.
Fermi shares have fallen over 66% so far this year, as the share price has fallen to about $8 from a high of $29 on October 10.
