Dec 17 (Reuters) – Data center real estate investment company Fermi on Wednesday denied a report that said Amazon was a prospective tenant and that it withdrew funding from the company’s project. Business Insider reported earlier in the day that Amazon has been in talks to become the “first tenant” at Fermi America’s Texas data centers, citing the […]
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Fermi denies report that Amazon was prospective tenant in stalled project
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Dec 17 (Reuters) – Data center real estate investment company Fermi on Wednesday denied a report that said Amazon was a prospective tenant and that it withdrew funding from the company’s project.
Business Insider reported earlier in the day that Amazon has been in talks to become the “first tenant” at Fermi America’s Texas data centers, citing the data center’s top boss Toby Neugebauer.
The report also stated that the talks between Fermi and the tenant remained “constructive”, and that the ending of the so-called Advance in Aid of Construction Agreement did not indicate a breakdown.
“Fermi America and its CEO, Toby Neugebauer, categorically deny Business Insider’s claim,” Fermi America’s spokesperson told Reuters in an emailed statement.
Amazon did not immediately respond to Reuters’ requests for comment.
Last Friday, Fermi said a prospective tenant had terminated a deal to help fund construction at its Texas site without disclosing its identity. Its shares dropped 34% after the announcement.
Under the terms of the agreement, the customer would have leased part of Fermi’s Project Matador site in Texas and could have provided up to $150 million to help finance construction.
(Reporting by Angela Christy in Bengaluru; Editing by Subhranshu Sahu and Harikrishnan Nair)