Rick Perry’s $13 Billion AI Data Center REIT – 2025 Analysis, Expert Insights & Future Outlook

Rick Perry’s Data Center REIT: 2025 Investment Analysis and Outlook

Rick Perry-Backed Data Center REIT: Fermi, co-founded by former U.S. Energy Secretary Rick Perry, is a Texas-based real estate investment trust (REIT) aiming to build one of the world’s largest data center campuses ^[1]. It plans to integrate massive on-site power generation (nuclear, natural gas, solar) with data centers to support the booming demand from artificial intelligence (AI) workloads ^[2].
IPO Targeting a $13 Billion Valuation: On September 24, 2025, Fermi set terms for its U.S. initial public offering (IPO), seeking up to $13.16 billion valuation ^[3]. It intends to raise about $550 million by selling 25 million shares at $18–$22 each ^[4]. Uniquely, Fermi plans a dual listing on the Nasdaq (ticker “FRMI”) and the London Stock Exchange ^[5].
Development-Stage Company with No Revenue (Yet): Founded in January 2025, Fermi remains pre-revenueand essentially a startup REIT ^[6] ^[7]. It does not expect any revenue for at least the next 12 months and has accumulated a $6.4 million loss since inception (through June 30, 2025) ^[8]. The IPO will fund initial construction – Fermi plans to use proceeds to procure equipment and build “powered shells” for its campus ^[9].
“HyperGrid” Mega-Campus Ambitions: Fermi’s flagship Project Matador, dubbed the “HyperGrid,” aims to deliver up to 11 gigawatts (GW) of power to a sprawling 5,200+ acre data center campus in Amarillo, Texas ^[10]. The plan is to have 1 GW of capacity online by end of 2026 ^[11], scaling to full capacity by 2038. If achieved, this would be the largest behind-the-meter AI data center complex globally, powered by a mix of advanced nuclear reactors, natural gas plants, solar farms, and battery storage ^[12].
Financing and Partners: Ahead of the IPO, Fermi secured ~$350 million in financing in August 2025 – a $100 million Series C equity round and a $250 million credit facility led by Macquarie Group ^[13] ^[14]. It also inked a 99-year land lease with Texas Tech University for the site ^[15] and announced a collaboration with Westinghouse to deploy four modular nuclear reactorsat the campus ^[16]. Major underwriters UBS, Evercore, Cantor Fitzgerald, and Mizuho are backing the IPO ^[17].
Riding the AI Data Boom: The AI boom of 2023–2025 has made data centers one of the hottest commodities. Training and running AI models (like ChatGPT) requires enormous computing power housed in data centers. Fermi cites forecasts that the global generative AI market will grow from $64 billion in 2023 to $457 billion by 2027, driving a corresponding explosion in demand for data center capacity ^[18]. Investors have poured into AI infrastructure plays – for instance, GPU cloud provider CoreWeave (CRWV) went public in March 2025 at a $20 billion valuation, and its stock tripled within months amid “overwhelming” AI demand ^[19] ^[20].
High Ambition, High Risk: Fermi’s IPO is an ambitious bet that public markets will fund an early-stage project. “AI is arguably the investment story of a lifetime, but at this stage Fermi is still a story,” notes Matt Kennedy of Renaissance Capital, adding that the proposed valuation is “very ambitious for a development-stage company” ^[21]. The company has no signed customers yet (though it’s in “advanced discussions” with AI developers and cloud firms) and no completed infrastructure on the ground ^[22]. Fermi itself warns it faces “execution risk across all major components of our business” as a startup with no operating history ^[23]. In short, this REIT offers a potentially huge upside but with significant risk.

2025 Performance and Milestones

A Wild Year for AI Infrastructure

The year 2025 saw frenzied interest in AI infrastructure, and Fermi’s rapid rise has unfolded against that backdrop. Data center REITs and tech firms initially rode a wave of euphoria from the AI revolution, but volatility soon followed. In late January 2025, a shock to AI expectations occurred when a Chinese firm unveiled a way to train powerful AI models at a fraction of the usual cost. This undercut the assumption that AI demand would grow exponentially unchecked – NVIDIA’s stock plunged 17% in one day (wiping out nearly $600 billion in value) and leading data center REIT stocks like Digital Realty Trust and Equinix to stumble as well ^[24] ^[25]. As one investment manager noted, “2025 has been less than stellar for the data center REITs” because some big tech companies started building their own server farms in-house, reducing immediate reliance on third-party landlords ^[26].

Yet, despite short-term jitters, the secular trend remains robust. Established data center REITs delivered stellar returns in 2023–24 (Digital Realty +40% in 2023, Equinix +25%, followed by even higher gains in 2024) ^[27], thanks to unprecedented demand and scarce power capacity in major regions. By mid-2025, these REITs were trading at premium valuations (23× AFFO, above the REIT average) – a sign that investors still anticipate strong growth ahead ^[28]. In other words, the AI data boom is real, even if 2025 brought a dose of realism about the pace of growth.

Fermi’s Breakneck Progress in 2025

Against this dynamic industry backdrop, Fermi’s trajectory in 2025 has been extraordinary – essentially compressing what would normally be years of development into months:

June 2025 – Mega-Project Announcement: Fermi burst onto the scene by announcing plans to build the world’s largest integrated energy-and-data center complex. Dubbed “HyperGrid”, the project’s reveal coincided with a favorable policy climate – it was hailed as the first major private nuclear-energy investment since federal reforms in May 2025 to fast-track nuclear projects ^[29]. The campus would marry a huge private power grid (including a new nuclear plant) with clusters of data centers, specifically to serve AI and high-performance computing needs ^[30] ^[31].
Summer 2025 – Capital and Partnerships: Over the summer, Fermi moved aggressively to line up capital and partners. In August 2025, it closed $350 million in financings led by Macquarie – consisting of a $100 million equity raise (Series C preferred) and a $250 million senior loan facility ^[32]. “Macquarie’s leadership…underscores their conviction that our speed of execution is based on our team’s experience,” said Fermi CEO Toby Neugebauer, emphasizing that the funds will accelerate procurement of critical equipment for the HyperGrid project ^[33] ^[34]. Around the same time, Fermi struck a deal with Westinghouse Electric to deploy four advanced modular reactors at its campus – a bold move to secure next-gen nuclear capacity for the data center’s power needs ^[35]. It also secured a 99-year land lease for nearly 5,800 acres with Texas Tech University, locking down the site for its colossal campus ^[36]. All this activity meant Fermi entered the fall with some cash on hand, initial permits filed (including a nuclear license application in progress), and even gas turbines already acquired for the first 1 GW phase ^[37] ^[38].
September 2025 – IPO Filing and Market Debut: In early September, Fermi filed its IPO paperwork with the SEC, surprising many with the speed from concept to public offering. “It was not even three months ago that [Fermi] announced its plans for an 11 GW HyperGrid… Now it’s going public,” observed one analyst, highlighting the “busy, almost frantic, summer” for a company that “hasn’t generated any revenue yet.” ^[39] ^[40] The IPO prospectus shed light on Fermi’s strategy and underscored its reliance on future funding: the company expects to fund construction via the IPO proceeds, additional project financing, and hoped-for government loans (it’s in early talks with the Department of Energy for a long-term low-cost loan) ^[41] ^[42]. By September 24, 2025, Fermi’s IPO terms were set with an ~$13 billion target valuation ^[43] – a figure that turned heads on Wall Street given Fermi’s nascent stage. Renaissance Capital’s Matt Kennedy noted the company is essentially selling a vision: “at this stage Fermi is still a story… it’ll be interesting to see how much investors will pay for it.” ^[44]
Peers’ Performance as a Proxy: Because Fermi itself has no public trading history, investors are looking at peers to gauge how the market might receive this IPO. Two other AI-centric infrastructure companies went public in 2025: CoreWeave (CRWV), which provides AI cloud infrastructure, and WhiteFiber (WYFI), a data connectivity firm. CoreWeave’s IPO in March 2025 priced below initial expectations (at $40/share) amid cautious sentiment ^[45], but the stock quickly proved the skeptics wrong – within months it more than doubled. By mid-2025 CoreWeave’s shares had soared to the $120+ range before a pullback, as investors saw it as a pure-play proxy for AI demand ^[46] ^[47]. However, its volatility also illustrated the risks: after a blockbuster rise, CoreWeave stock plunged 16% in one day in August when it issued a weaker outlook and revealed huge interest costs on its debt ^[48] ^[49]. An analyst warned that “their interest expense is higher than their operating income,” highlighting the danger of heavy debt loads in this sector ^[50]. WhiteFiber’s IPO in August 2025, a smaller deal, was also met with strong demand – it priced at the top of its range ($17) and raised $183 million ^[51]. As of late September, WhiteFiber’s stock was up about 12% from its IPO, outperforming the S&P 500 ^[52]. These precedents suggest that market appetite for AI infrastructure plays is robust – but investors will punish any signs of underperformance or financial strain. Fermi’s 2025 journey thus far – rapid funding, frenzied development, and a high-profile IPO – encapsulates both the excitement and the uncertainty of the current AI investment cycle.

Expert Insights: Hype vs. Reality in Fermi’s Investment Case

Is Fermi America the next big thing in AI infrastructure, or just an overhyped moonshot? Opinions among experts and analysts are divided, with bulls touting the massive opportunity and bears highlighting the big risks. Here’s a breakdown of key insights:

“AI: The Investment Story of a Lifetime… But Fermi Is Still Just a Story”: This quip from Matt Kennedy (IPO strategist at Renaissance Capital) neatly captures the tension ^[53]. On one hand, AI-driven demand for data centers is unprecedented – “unprecedented demand for our AI cloud services,” as Fermi’s peer CoreWeave put it in a recent earnings call ^[54]. Wall Street analysts broadly remain bullish on companies enabling AI: they foresee AI needs “rising at a torrid pace” and expect tech giants to keep relying on third-party infrastructure for extra computing power ^[55]. Oracle’s CEO recently stunned investors by projecting their cloud infrastructure revenue will grow from ~$18 billion now to $144 billion by 2029, a sign of how explosively the pie might expand (analysts were “blown away” by that forecast) ^[56]. By this logic, a company like Fermi – positioning itself to supply the essential real estate and energy for AI – could ride a multi-year wave of growth. Joshua Stevens of Macquarie, one of Fermi’s backers, stated that Fermi’s “distinctive strategy and ability to tap into near-term power solutions make it well placed to address the fast-growing needs of AI” ^[57]. If Fermi executes well, it could secure major AI tenants and enjoy years of high demand with relatively little competition in its niche (few companies are combining private power grids with data centers at this scale).
Textbook Hype Cycle Traits – Early-Stage Risks: On the other hand, skeptics view Fermi as a risky bet caught up in AI hype. A Latitude Media analysis bluntly asked: “Is Fermi’s IPO all hype?” and noted the company “looks like a textbook hype cycle play — not inherently good or bad, but certainly risky.” ^[58] Fermi is racing to market far earlier than typical data center ventures. Ordinarily, a data center developer would secure significant upfront capital, have some facilities built or at least fully permitted, and line up long-term customer contracts before going public ^[59]. Fermi, by contrast, is essentially asking IPO investors to fund a concept. Its SEC filings confirm the uncertainties: Fermi has no guaranteed financing yet for the full 11 GW buildout (a hoped-for DOE loan is not finalized) ^[60], no signed anchor tenants (only discussions in progress) ^[61], no revenue, and no physical infrastructure built to date ^[62]. Key project pieces – from connecting to the Texas grid to obtaining environmental and nuclear permits – are still in process ^[63]. Fermi itself concedes that it’s “a development-stage company with no operating history or historical revenue” and faces daunting execution risks in every aspect of its plan ^[64]. This all-or-nothing profile is highly unusual for a REIT IPO. Many would argue that Fermi’s valuation is predicated on optimism, not fundamentals – a hallmark of hype-driven ventures.
Cash Burn and Debt – Lessons from Peers: Financial experts caution that capital intensity and financing costs could make or break Fermi. Building data centers and power plants is enormously expensive. If Fermi raises $550 million from the IPO, that’s still a drop in the bucket for an 11 GW campus – meaning it will likely need billions more in project financing over time. “Deteriorating operating income guidance highlights the main issue – their interest expense is higher than their operating income,” warned D.A. Davidson analyst Gil Luria about CoreWeave’s recent results ^[65]. CoreWeave borrowed heavily to buy cutting-edge AI chips, and now its interest payments exceed its profits, an unsustainable situation ^[66]. Fermi could face a similar trap if it takes on large debts to build reactors and data halls before securing revenue-generating tenants. High interest rates in 2025 further raise the stakes – servicing debt for a construction-stage project can quickly erode equity value. Investors will be watching how Fermi sequences its spending and whether it can tap government loans (which typically offer lower rates and long maturities) to ease the burden. Until Fermi signs some paying customers or locks in cheap financing, its cash burn will likely continue and even accelerate as it starts building.
Execution Challenges – “No Room for Delays”: Data center and power infrastructure projects are prone to delays, and delays could be disastrous for Fermi’s business model. Dan Thompson, a principal analyst at 451 Research, notes that supply chain issues have lengthened lead times for critical electrical and cooling equipment, requiring extensive planning ^[67]. He also warns that contracts with hyperscale customers (big cloud/AI firms) often include escape clauses if projects fall behind schedule ^[68]. “If you run into a one-year delay, you can be sure the hyperscalers will have some very serious questions,” Thompson says ^[69]. In practice, this means Fermi must execute flawlessly to attract and retain tenants – any slip in delivering that first 1 GW by 2026 could cause potential clients to walk away to other providers or build their own facilities. Moreover, Fermi’s bold plan to deploy new nuclear reactors (likely advanced small modular reactors) adds another layer of execution risk: nuclear projects, even smaller ones, face rigorous regulatory hurdles and public scrutiny. The market for nuclear-powered data centers is “not yet established” and may grow more slowly than hoped, Fermi admits in its risk factors ^[70]. In short, Fermi is attempting a complex feat (power plant + data center) on an aggressive timeline – something that will require top-tier project management and a bit of luck to pull off.
Insider Confidence vs. Skepticism: It’s worth noting that insiders and early investors seem confident enough to push Fermi forward quickly. Rick Perry’s involvement provides political clout and a stamp of credibility in navigating energy regulations – as a former Texas Governor and U.S. Energy Secretary, Perry is intimately familiar with both the state’s energy landscape and federal energy policy ^[71]. CEO Toby Neugebauer is an energy industry veteran (previously co-founder of Quantum Energy) with experience in large-scale energy finance ^[72]. They’ve assembled a team of “proven world-class…leaders,” according to the company’s pitch ^[73], suggesting they believe they can execute where others might stumble. Neugebauer’s vision is unabashedly ambitious and patriotic: “Like generations of entrepreneurs and workforces before us from this very region, we are delivering on energy promises made so that America can win again,” he said, framing Fermi’s mission as a strategic national asset in the AI race ^[74]. Such visionary rhetoric appeals to investorswho don’t want to miss the next big thing. Still, seasoned analysts urge caution: “many would argue [Fermi is] an unlikely candidate for an IPO… but these are interesting times,” the Latitude Media piece concluded dryly ^[75]. The implication is clear – investors must separate genuine long-term opportunity from short-term hype, and in Fermi’s case the line is fine.

Fermi vs. Other REITs, Tech Stocks, and Infrastructure Investments

How does investing in Fermi compare to other options? Given its unusual profile, Fermi straddles several categories – it’s structured as a REIT (like a real estate/infrastructure asset), but it’s also a high-growth tech play (serving AI), and it involves heavy capital projects (like utilities or infrastructure developers). Here’s how Fermi stacks up on each front:

Versus Established Data Center REITs: Traditional data center REITs such as Digital Realty Trust (DLR) and Equinix (EQIX) offer exposure to the same mega-trend of digital infrastructure, but with far more proven business models. These companies own dozens of operational data centers leased to big-name tenants (Amazon, Microsoft, Meta, etc.) and generate steady revenues. They also pay dividends, as REITs typically do. Equinix and DLR are expanding rapidly to meet AI demand – Equinix’s CEO noted plans to “double our capacity by the end of 2029”, spending $4–5 billion per year on construction (up from $3.3 billion in 2025) ^[76] ^[77]. By investing in those companies, one is betting on continued AI and cloud growth, but with the safety net of established cash flows and diversified customer bases. In contrast, Fermi is a high-risk, high-reward outlier. It essentially offers ground-floor ownership of a potential Equinix-like platform in the future, but currently has no income, no dividend, and concentration risk (all eggs in one huge project). If Fermi succeeds, the upside could be much larger – an investor buying at IPO is effectively buying undeveloped land and plans at a $13B valuation, which could prove cheap if the campus eventually generates billions in rent annually. However, failure to execute would mean the REIT might never generate meaningful cash flow, whereas DLR/EQIX are profitable today. Risk-tolerant investors might allocate a small portion to Fermi for its growth potential, while keeping core holdings in the established REITs.
Versus Tech Stocks (AI & Cloud Giants): Another way to ride the AI wave is via big tech and semiconductor stocks. Companies like NVIDIA (NVDA), which supplies the GPUs for AI data centers, have seen their stock skyrocket (NVDA’s share price grew ~22× over 5 years amid AI enthusiasm) ^[78]. Likewise, cloud providers like Microsoft (MSFT), Google (GOOGL), Amazon (AMZN), or Oracle (ORCL) are investing heavily in AI infrastructure and have robust businesses beyond AI. Investing in those tech stocks offers exposure to AI growth with far less company-specific risk – they are profitable, diversified, and liquid. However, their sheer size means that even dramatic growth in AI infrastructure is just one part of their business; the pure-play effect is diluted. Fermi, on the other hand, is a pure play on AI data infrastructure – its fortunes rise and fall solely on that sector. In that sense, Fermi is more comparable to smaller high-growth tech companies or recent AI startups like CoreWeave. Like many tech startups, CoreWeave has been volatile – soaring on growth hopes, but subject to steep drops on any bad news ^[79] ^[80]. Investors choosing between Fermi and tech stocksshould consider their risk appetite: Fermi might deliver multi-bagger returns if it becomes the go-to AI data campus, but one could also lose a significant portion of investment if the project falters. By contrast, an NVIDIA or Microsoft investment is unlikely to go to zero and provides broader exposure, though perhaps without the thrill of a speculative moonshot.
Versus Other Infrastructure Investments: Fermi also invites comparison to infrastructure and energy investments. In many ways, Fermi’s plan resembles a large-scale utility or power project combined with real estate. Consider a traditional infrastructure project like building a power plant, highway, or telecom network – investors expect stable, long-term cash flows but only after significant upfront costs and construction risk. Fermi is similar: it’s pouring money into physical assets (power generators, grid interconnects, fiber, buildings) that could yield steady returns once operational (through long-term leases and energy sales to tenants). However, unlike typical infrastructure funds or utility stocks, which often operate regulated assets with guaranteed returns, Fermi’s returns are market-driven and uncertain. There is also competitive risk – for example, cell tower REITs (like American Tower and Crown Castle) thrived by leasing to wireless carriers in a burgeoning market, but they had multiple tenants and incremental build-outs. Fermi is committing to one enormous campus with presumably a small number of very large clients (AI hyperscalers). It’s all-in on a single project, more akin to a startup building the first of its kind facility. Additionally, infrastructure investors often seek inflation-protected, bond-like yields; Fermi offers none of that in the near term. Its value lies in potential equity appreciation, not income. For someone considering infrastructure exposure, Fermi would be the aggressive end of the spectrum – akin to a venture capital bet on a new infrastructure concept, whereas something like a pipeline partnership or utility stock would be a conservative, yield-focused play.

In summary, Fermi doesn’t fit neatly in any one bucket. It offers the growth excitement of a tech startup, the asset-based tangibility of a REIT, and the long-horizon returns of an infrastructure project. Potential investors should size their position accordingly – it’s not a stable dividend payer like most REITs, and it’s riskier than a diversified tech ETF, but it could complement a portfolio if one is seeking targeted exposure to AI infrastructure with a tolerance for volatility.

Future Investment Outlook – 2026 and Beyond

Looking ahead, the big question is: What does the future hold for Fermi and its investors, in 2026 and beyond?While crystal balls are always murky, we can outline key factors and scenarios that will shape Fermi’s trajectory:

Milestones to Watch (2026–2027): Fermi’s immediate test will be hitting its near-term targets. Management aims to have 1 GW of power capacity up and running by the end of 2026 at the HyperGrid campus ^[81]. Achieving this is crucial – it would likely mean some combination of gas turbines, perhaps solar installations, and initial data center structures are in place. If Fermi can energize its first gigawatt and sign a few anchor tenants by 2026–27, it will validate the concept and could start generating its first revenues. That in turn could boost the stock and enable further capital raises on better terms (possibly secondary offerings or debt financing) to fund the next phases. Conversely, if the end of 2026 arrives and Fermi has little to show on the ground – e.g. construction delays or difficulty getting the nuclear units permitted – then customers might hesitate to commit, and the market could turn skeptical very quickly. Early 2027 might also bring the expiration of any IPO lock-up agreements, meaning insiders could sell shares – a critical time for Fermi to prove it’s on track, lest a wave of selling pressure hits the stock.
Securing the DOE Loan & Other Financing: One potential game-changer in 2026 would be Fermi landing that coveted Department of Energy loan. Fermi has applied to the DOE’s Loan Programs Office for support, which could provide “long-term, low-cost capital” to finance key parts of its energy infrastructure ^[82] ^[83]. If approved, such a loan could be on the order of several billions (the DOE has backed nuclear and renewable projects in that range before). That would significantly de-risk Fermi’s funding needs and validate its technology approach. It might also come with government oversight or milestones. Investors should watch news from Washington: any indications of federal backing for Fermi (or advanced nuclear projects in Texas) would likely boost the stock. Additionally, Fermi may pursue strategic partnerships – for example, could a big tech company or sovereign wealth fund take an equity stake or sign an offtake agreement? A deal with a major AI cloud player (say, Microsoft or Google agreeing to lease dedicated space/power at Fermi’s campus) would instantly put Fermi on the map and might even pre-empt the need for some financing if it includes upfront commitments. In short, the sooner Fermi can access large-scale capital on favorable terms – through government loans or anchor tenant deals – the brighter its outlook.
Competition and Market Share: Fermi is an early mover in combining energy generation with data centers for AI, but it likely won’t be alone for long if the concept proves profitable. By 2026–2027, we could see others emulate this model. For instance, traditional data center REITs might partner with utilities to secure dedicated power for AI facilities, or energy companies might decide to build their own “data center plus power” parks. Tech giants could invest directly in energy infrastructure for their data farms (Google, for example, has bought land for data center campuses near power sources before). Fermi’s window to establish itself as the go-to AI mega-campus might be a few years at most. Beyond that, competition could erode its first-mover advantage. On the flip side, the total demand is so enormous that multiple players can thrive – one industry report projected a 30-fold increase in U.S. AI data center power demand by 2035 ^[84]. If that even comes partially true, companies like Fermi (and its competitors) will likely have more demand than they can handle. Fermi’s challenge will be to execute quickly and grab a meaningful share of this growth before others catch up.
Macro Factors – AI Trajectory and Economy: The broader context will also influence Fermi’s future. If the AI revolution continues unabated – with ever-larger models, adoption across industries, and new AI-driven services – then demand for data center space and power could keep outstripping supply well into the late 2020s. In that scenario, Fermi stands to benefit as a capacity provider. However, if AI progress hits a plateau or efficiency gains (like better chips or algorithms) significantly reduce computing needs, the feverish demand might cool. There was a hint of this when a cheaper training method emerged in early 2025, as noted earlier, though so far that hasn’t stopped the overall AI investment trend ^[85]. Macro-economic conditions also matter: high interest rates make it costly to finance big projects (a headwind for Fermi), whereas a return to lower rates by 2026 would ease Fermi’s cost of capital. Additionally, the health of capital markets will determine if Fermi can raise follow-on equity if needed. A recession or bear market in 2026 could dry up funding sources, whereas a booming market would happily fund growth. Geopolitical factors shouldn’t be ignored either – Fermi’s plan involves nuclear reactors, so global sentiment on nuclear energy (influenced by any major nuclear incidents or policy changes) could impact regulatory timelines and public acceptance.
2026 and Beyond – The Bull vs Bear Case: Summarizing the extremes: In a bull case, by 2028 Fermi might have, say, 2–3 GW operational, a roster of blue-chip AI tenants paying hefty rents, and clear line of sight on completing the full campus by the 2030s. It could start to resemble a mini-Equinix with a unique power angle, potentially delivering strong revenue growth and asset value appreciation (and perhaps even initiating dividends once cash flows stabilize). Early investors could see significant gains as Fermi matures from speculative to established. In the bear case, Fermi could stumble – delays in construction, trouble securing reactors or permits, not enough clients willing to sign on early – and burn through its cash. It might then need dilutive capital raises or face project downsizing. In a worst case, if AI demand doesn’t meet expectations or shifts away from the big-campus model, Fermi’s giant project could become a white elephant, with the stock trading down sharply. Realistically, the outcome will lie somewhere in between these extremes, hinging on execution and market evolution.

For retail investors and the general public, the key takeaway for the future is to keep informed and calibrated. Investing in Fermi is a bet on the long-term infrastructure of the AI era. It requires patience and a stomach for volatility. As news comes in over the next few years – whether it’s quarterly progress reports, new contracts signed, or setbacks encountered – investors should reassess how the reality matches up with Fermi’s promise. This story will likely have twists and turns, but it embodies one of the most exciting investment themes of our time: the race to build the digital infrastructure that will power the AI revolution.

Bottom Line: Rick Perry’s Fermi data center REIT is no ordinary REIT. It’s a moonshot on AI infrastructure – blending real estate, energy, and cutting-edge tech. 2025 showed us the hype, hope, and hazards of this venture. Going forward, Fermi could either become a foundational piece of the AI economy (with commensurate rewards for investors) or a cautionary tale of overreach. As always, a balanced approach – acknowledging the sky-high potential and the substantial risks – is warranted. For those who believe in the AI mega-trend and are willing to ride out turbulence, Fermi is a story to watch closely (and perhaps be a part of) as we head into 2026 and beyond.

Sources:

Reuters – “Rick Perry’s data center REIT Fermi targets $13 billion valuation in US IPO” (Sept 24, 2025) ^[86] ^[87] ^[88]
Reuters – “Data center builder Fermi files for US IPO as new listings accelerate” (Sept 8, 2025) ^[89] ^[90]
Latitude Media – “Is Fermi America’s IPO all hype?” (Sept 10, 2025) ^[91] ^[92]
PR Newswire – “Fermi America Closes $350 Million in Financings Led by Macquarie” (Aug 29, 2025) ^[93] ^[94]
Chilton Capital Management – “Data Center REITs: Own the Real Estate Behind AI” (August 2025) ^[95] ^[96]
SwingTradeBot (Yahoo Finance content) – “CoreWeave stock plummets as AI cloud company reports ‘deteriorating’ outlook” (Aug 13, 2025) ^[97] ^[98]
S&P Global Market Intelligence – “Digital Realty, Equinix ramp up datacenters as AI drives demand” (June 2025) ^[99] ^[100]
Nasdaq IPO Calendar – CoreWeave (CRWV) & WhiteFiber (WYFI) IPO details ^[101] ^[102].