Fermi AI Data Center Firm IPO Raises $682.5M, Shares Surge 55% Nasdaq Debut

Fermi, a Texas-based energy real estate investment trust founded in January 2025, saw its shares soar over 54% on its Nasdaq debut, closing at $32.53, well above its IPO price of $21 per share, and continuing to rise in premarket trading. The company raised $682.5 million and achieved a $12.5 billion valuation within nine months of founding, signaling strong investor enthusiasm for its plan to build the world's largest AI data center powered by nuclear, natural gas, and solar energy. Fermi's flagship initiative, Project Matador, aims to deliver 1.1 gigawatts of power by late 2026, scaling up to 11 gigawatts by 2038, potentially producing double the electricity currently used by New York City. Despite not having generated revenue yet, the company has secured a lease on 5,236 acres from Texas Tech University and signed a non-binding 20-year lease agreement with its first tenant. Investors appear attracted by the potential of Fermi’s integrated energy and AI infrastructure model, which includes innovative power procurement and grid management to meet rising AI workload demands. Analysts caution that while the IPO reflects high market appetite for AI infrastructure, Fermi's long-term success depends on effective project execution and contract fulfillment.