Fermi Shares Soar 55% in Debut on AI Data Center Plans
The energy and AI startup raised $682.5 million in a dual Nasdaq and LSE listing to fund a self-powered data center campus in Texas.
Shares of Fermi Inc. (FRMI), an ambitious AI and energy startup, surged nearly 55% in their public market debut on Wednesday. The company's stock opened for trading on the Nasdaq and London Stock Exchange, closing at $32.53 after pricing its initial public offering at $21.00 per share.
The spectacular first-day performance reflects strong investor appetite for companies positioned at the intersection of artificial intelligence and energy infrastructure. Fermi in the offering, capital it plans to deploy for an audacious project in Texas.
At the heart of Fermi's strategy is "Project Matador," a plan to build one of the world's largest AI data center campuses powered by its own independent energy grid. The company, co-founded by former U.S. Energy Secretary Rick Perry, aims to solve a critical bottleneck for the booming AI industry: the immense and constant power required for AI computing. By generating its own electricity from a mix of natural gas, solar, and future nuclear sources, Fermi intends to offer a more reliable and robust power supply than the public grid can provide.
This vertically integrated approach has clearly captured the market's imagination, despite the company being in a pre-revenue stage. According to , Fermi is structured as a real estate investment trust (REIT) but does not expect to generate revenue for at least a year as construction on the 5,200-acre campus begins.
The successful dual listing provides Fermi with access to a deep pool of international capital. The strong investor reception on its first day gives the company a valuation of approximately $13.8 billion, a significant premium over its IPO pricing. The surge underscores a broader market trend where investors are placing substantial bets on companies building the foundational infrastructure for the .