Fermi Inc. Common Stock (FRMI) Stock Analysis

Fermi Inc. (FRMI) seeks to differentiate itself through vertical integration of power generation and data center infrastructure, a model uncommon among U.S. data center real estate investment trusts (REITs) such as Equinix and Digital Realty. FRMI’s core asset is a 5,000-acre campus in Amarillo, Texas, with plans for 11 gigawatts (GW) of on-site generation—primarily natural gas and nuclear—by 2038. This scale is designed to address the acute power constraints facing hyperscale data center operators, particularly those serving artificial intelligence workloads.

Unlike most peers, which rely on public utilities, FRMI’s “off-grid” approach aims to offer customers greater power reliability and pricing certainty. This is a potential advantage as grid congestion and permitting delays increasingly limit expansion for rivals. The company’s location in deregulated Texas further enables flexible power procurement and cost control.

However, FRMI’s competitive edge remains largely theoretical. The company is pre-revenue, with no firm tenant contracts as of October 2025. Execution risk is high: the capital required for its buildout—estimated at $70–$90 billion—far exceeds that of established competitors. Regulatory hurdles, especially for nuclear development, are significant. While FRMI’s leadership includes experienced industry figures, its long-term advantage will depend on its ability to deliver on ambitious construction and commercialization targets ahead of better-capitalized incumbents.