(Reuters) -Fermi, a data center real estate investment trust co-founded by former U.S. energy secretary Rick Perry, said on Tuesday it raised $682.5 million in its U.S. initial public offering. The Amarillo, Texas-based company sold 32.5 million shares at $21 apiece, compared with its marketed range of $18 to $22 apiece. The IPO valued Fermi, […]
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Rick Perry-backed Fermi REIT raises $682 million in U.S. IPO amid AI data-center boom
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(Reuters) -Fermi, a data center real estate investment trust co-founded by former U.S. energy secretary Rick Perry, said on Tuesday it raised $682.5 million in its U.S. initial public offering.
The Amarillo, Texas-based company sold 32.5 million shares at $21 apiece, compared with its marketed range of $18 to $22 apiece.
The IPO valued Fermi, which was founded in January 2025, at $12.46 billion.
Fermi focuses on large-scale AI power and data center infrastructure and has set its sights on building what it says would be the world’s largest energy and data complex.
The company is developing an AI data center campus in Texas designed to draw on nuclear, natural gas and solar power to provide dedicated energy infrastructure for its hyperscale tenants — companies requiring massive computing power and data storage capabilities.
Fermi plans a dual listing in New York and London, with shares expected to begin trading on the Nasdaq on October 1 and the London Stock Exchange on October 2 under the ticker symbol “FRMI.”
Earlier this week, the company increased the size of the offering to 32.5 million shares from an initial target of 25 million, indicating strong investor demand.
“There’s no questioning that they’re selling into a lot of demand for AI infrastructure right now,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
Investor interest in data center operators has been strong this year; both CoreWeave and WhiteFiber are trading well above their offer prices.
Fermi’s Amarillo campus is expected to deliver up to 11 gigawatts (GW) of power to data centers by 2038, with 1 GW slated to come online by late 2026.
The company remains early in its development; it does not expect to generate revenue within the next 12 months and reported a $6.4 million loss since inception through June 30.
UBS Investment Bank, Evercore ISI, Cantor and Mizuho acted as the book-running managers for the offering.
(Reporting by Arasu Kannagi Basil and Prakhar Srivastava in Bengaluru; Editing by Tasim Zahid)