Fermi America has lost a $150 million construction funding agreement tied to its Project Matador development after an exclusivity period with its first prospective tenant expired earlier this week, according to filings with the U.S. Securities and Exchange Commission.
In an SEC filing made public Friday, Fermi disclosed that its first prospective tenant has terminated an Advance in Aid of Construction Agreement (AICA) that would have provided up to $150 million to help fund shared infrastructure and utility systems at the Project Matador site. The termination followed the expiration of the exclusivity period in a non-binding letter of intent between the parties at midnight on Dec. 9.
The company stated that no funds were ever drawn under the AICA.
Fermi first announced in September 2025 that it had entered into a non-binding letter of intent with an unnamed, investment-grade-rated tenant to lease a portion of the Project Matador site. The proposed lease was contingent on negotiating and executing a definitive lease agreement. In November 2025, Fermi announced the AICA, under which the tenant agreed to advance construction funding prior to occupancy.
According to the SEC filing, once the exclusivity period expired on Dec. 9, Fermi began discussions with “several other potential tenants” for power delivery at the site in 2026. On Dec. 11, the original prospective tenant formally notified Fermi that it was terminating the $150 million AICA. The filing notes that despite the termination, “the parties continue to negotiate the terms of a lease agreement at Project Matador pursuant to the letter of intent.”
Fermi also told regulators that it remains confident in its construction and delivery timeline. In the filing, the company stated that it “remains confident that it will be able to meet its expected power delivery schedule at Project Matador as the demand for behind-the-meter power for AI remains robust over the near and long term.”
The disclosure had an immediate market impact. Fermi’s stock price fell by more than 30% by 4 p.m. Friday following the announcement.
The company has not publicly identified the first prospective tenant. However, the Texas Tech University System (TTUS), which has a lease agreement with Fermi related to the Project Matador site, maintains a list of Phase One tenants it would accept. That list includes major technology companies such as Google, Amazon, Meta, Microsoft and Apple, though there has been no confirmation that any of those firms are involved in the negotiations.
Prior to the termination of the AICA, Fermi had confirmed in response to inquiries from London-based media that it was in discussions for more than $4 billion in project financing associated with the first tenant. That financing was expected to be structured as non-recourse debt through a special purpose vehicle.
In a statement following the filing, Fermi America Co-Founder and Chief Executive Officer Toby Neugebauer emphasized the company’s broader strategy and ongoing negotiations.
“Fermi is building an incredible company with hard assets while negotiating with the world’s leading companies in record time for behind-the-meter power at scale,” Neugebauer said. “While we remain in active conversation with tenant number one, the tenant exclusivity clause having expired allowed multiple potential 2027 tenants to begin bidding on 2026 power. We have never felt better about our position and commitment to make the right long-term decisions for our shareholders, the company, and the Panhandle community.”
Project Matador is positioned to provide behind-the-meter power infrastructure aimed at large-scale, energy-intensive users, particularly in the artificial intelligence and data center sectors. Fermi’s latest filing suggests that while the loss of the AICA represents a setback, the company is seeking to broaden its pool of potential tenants and maintain its development timeline.
