Fermi America: Plugged In: Fermi’s AI Advantage

Fermi is positioned at the centre of one of the defining challenges of the AI and data-centre boom: the need for vast, reliable power. Its Texas campus sits adjacent to major natural-gas pipelines and solar corridors, securing access to abundant, low-cost energy. With over 11 GW of firm generation already contracted and nuclear expansion planned later this decade, Fermi offers investors an unbeatable opportunity to capture long-term exposure to energy security, scalability, and transformative infrastructure growth.

Founded by Toby Neugebauer and former U.S. Energy Secretary Rick Perry, Fermi combines decades of large-scale energy-development experience with exceptional policy access and financial reach. Strategic partnerships with Macquarie, Hyundai Engineering, and Westinghouse provide capital strength, engineering capability, and forward-looking nuclear expertise. This combination of institutional depth and entrepreneurial execution positions Fermi as a credible first mover at the intersection of energy and advanced computing where scale, timing, and delivery matter most.

Fermi’s hybrid REIT structure unites power generation with long-term leasing of compute infrastructure, creating a platform built for durability and yield. Revenues are underpinned by recurring leases and inflation-linked energy contracts, providing visibility and upside as capacity scales. The REIT model enhances capital efficiency, supports dividend distribution, and aligns with rising investor demand for high-yield infrastructure exposure. As AI energy requirements accelerate globally, Fermi stands out as a strategically timed, high-conviction investment in the backbone of the digital economy.

Hit Phase 1 Targets: Completing Phase 1 on schedule is the first major catalyst. Installing initial turbines, energising substations, and delivering the first powered shells moves Fermi from developer to operator. As power and capacity come online, lease revenue begins, construction risk falls, and investors can track tangible progress against public milestones. Each acceptance test and meter turn adds credibility, supporting better financing terms and a potential valuation rerating as the business demonstrates cash generation.

Expand Tenant Base: Broadening the tenant base beyond the first anchor is a key growth step. Signing additional hyperscalers and AI operators across powered shell and turnkey options lifts contracted capacity and strengthens cash flow visibility. A diversified mix reduces reliance on any single customer, improves credit quality of receivables, and lengthens weighted average lease term. More tenants also enable staged capacity additions that match demand, helping sustain utilisation and support progressive margin improvement as the campus scales.

Bring Nuclear Power Online: Bringing nuclear units online is the structural catalyst that shifts Fermi from gas backed power to round the clock, low carbon baseload. Progressing licensing, site works, and first concrete leads to commissioning of initial reactors, followed by a fleet build. Nuclear adds long asset life, stable fuel costs, and higher availability, which can support premium long term contracts. Success here would widen Fermi's moat and materially expand capacity for energy intensive AI workloads.

Fermi's ambitious buildout depends on hitting tight construction and equipment-delivery timelines. Delays in turbine installation, site preparation, or tenant onboarding could push back expected revenue and increase costs. Large-scale infrastructure projects often face these hurdles so even with strong partners, Fermi's near-term progress will rely heavily on superb execution and coordination across multiple contractors and suppliers.

Fermi's long-term strategy hinges on adding nuclear capacity in the 2030s, requiring multiple U.S. Nuclear Regulatory Commission approvals. Shifting regulations, political opposition, or safety-review delays could significantly extend timelines or increase compliance costs. While near-term operations rely on gas power, any prolonged licensing setback could slow the transition to low-carbon energy and reduce the appeal of Fermi's "clean-power" investment narrative.

Early cash flows are expected to rely heavily on one anchor tenant moving from a letter of intent to a signed, staged deployment. If that tenant delays, scales back or seeks pricing concessions, capacity could sit under-utilised and revenue timing would slip. Concentration also increases exposure to a single customer's technology roadmap and budget cycle, which could change quickly in the fast-moving AI market and affect leasing momentum across the campus.