Fermi Inc. (NASDAQ: FRMI)

Fermi Inc. is developing a private power campus for AI-centric customers, focusing on grid-independent energy generation and high-performance computing facilities designed for the hyperscale era. The company aims to deliver low-carbon, highly reliable, and on-demand power to compute-intensive businesses, leveraging its Project Matador campus in the Texas Panhandle region. Fermi Inc. plans to support up to approximately 15 million square feet of AI-ready hyperscale compute infrastructure through a multi-decade buildout, integrating on-site natural gas-fired generation, battery energy storage systems, solar generation, and longer-term nuclear baseload supply.

Fermi Inc. intends to generate substantially all of its revenue from long-term tenant lease arrangements at Project Matador, with tenant payments structured as rents from real property for U. S. federal income tax purposes. Revenue components include fixed monthly rent based on reserved power capacity expressed in dollars per kilowatt per month, fixed rent based on invested capital in real property improvements, pass-through reimbursements for energy-related input costs and other shared campus system expenses, and development and administrative fees for certain deployments. The company expects tenant payments to be primarily tied to contracted power capacity and service levels, reflecting the economics of high-density AI workloads.

The company operates through the following segments:

• Powered Shell Leasing: This segment involves the development and leasing of powered shell buildings designed to support tenant mechanical, electrical, and plumbing installation and high-density compute deployment. The company plans to construct and deliver initial powered shell facilities including structural buildout, electrical backbone infrastructure, and cooling systems. Fermi America, HyperRedundant, and HyperGrid are trademarked names associated with this segment's branding and service offerings.

• Ground Leasing: This segment offers long-term ground leases to tenants that elect to construct their own powered shell facilities on Fermi Inc.'s land, with or without integrated power delivery. Under this model, the company expects to earn market-based ground lease rent under long-duration lease structures, with power capacity and infrastructure made available under the lease structured as rent or additional rent. The Ground Leasing segment utilizes the same trademarked identifiers—Fermi America, HyperRedundant, and HyperGrid—for consistency in brand representation across tenant-facing services.

Fermi Inc. is positioned to address growing demand for private power solutions in the AI infrastructure market, where traditional utility power delivery faces constraints from limited grid capacity, interconnection queue delays, and transmission congestion. The company's competitive advantages include large-scale site control through a 99-year ground lease with the Texas Tech University System, proximity to productive natural gas-producing regions, access to major fiber optic transmission corridors for low-latency connectivity, and ownership of groundwater rights from the Ogallala Aquifer. These factors support redundant fuel supply, scalable water resources, and high-security infrastructure due to proximity to the U. S. government's Pantex facility.

Fermi Inc.'s target customers are hyperscale and other large-scale compute users, including cloud service providers, AI infrastructure operators, chipmakers, and enterprises or governmental and quasi-governmental entities requiring long-duration access to high-density compute capacity supported by reliable power. The company expects tenant lease agreements to be long-term in nature and structured to support large, phased deployments over time, with early discussions underway with multiple prospective tenants across various stages of negotiation, including those evaluating term sheet structures and conducting confirmatory site diligence.