Fermi rejects claim that Amazon was prospective tenant in stalled project

On Wednesday, December 17, data center real estate investment company Fermi denied reports identifying Amazon as the prospective tenant that recently withdrew financing from its Texas project.

According to Reuters, Fermi has denied a report that Amazon was in talks to become the “first tenant” at its Texas data centers.

Recent reports indicate that talks between Fermi and the tenant remained productive, and that the termination of the funding agreement does not signal the project’s collapse.

In this connection, Fermi America’s spokesperson told Reuters, “Fermi America and its CEO, Toby Neugebauer categorically deny Business Insider’s claim.”

Fermi has officially said a potential tenant had entered a deal to help fund construction at its Texas site without revealing the company’s identity. Its shares plummeted 34% following the announcement.

The move appeared to be a protective action by Fermi to stop the narrative that a Big Tech giant had abandoned the project.

Nonetheless, the new terms of the agreement demonstrated that the customer intended to lease a portion of Fermi’s Project Matador site in Texas and had committed up to $150 million in construction financing.

Until a definite lease agreement is signed with the counterparty, the project remains in a speculative state.