KEY POINTS
- A $150 million tenant-backed construction funding agreement for Fermi’s HyperGrid AI campus collapsed, sending shares down as much as 43% on Dec. 12.
- Also known as Project Matador, HyperGrid aims to be the world’s largest energy and data complex, using natural gas, solar, wind, and nuclear to run AI data centers.
- Fermi says it remains in lease talks and is confident in its schedule: three 500,000‑sq‑ft data centers by the end of 2026 and full buildout by 2032.
CLICK HERE to get full details of this project, including any available plans, courtesy of ConstructConnect Project Intelligence.
The $300 billion HyperGrid AI campus near Amarillo, Texas, has hit a snag: a major funding deal collapsed, according to project owner Fermi America.
Fermi’s stock plunged as much as 43% on Friday, December 12, after news broke that a potential tenant had pulled out, taking a $150 million construction-funding agreement with them.
What is HyperGrid, or Project Matador?
Also known as Project Matador, the ambitious plan calls for an 18‑million‑square‑foot campus designed to deliver up to 11 gigawatts of power for AI workloads. It would use a combination of natural gas, solar, wind, and nuclear energy, positioning it as the world’s largest energy and data complex.
How did Fermi lose the HyperGrid funding deal?
The funding setback surfaced in a Fermi securities filing. According to Barron’s, Fermi signed a letter of intent with the unnamed tenant in September 2025 and, two months later, entered into an agreement for a $150 million advance to support construction. On December 11—two days after the agreement’s exclusivity period expired—the tenant notified Fermi it would not move forward. No funds were drawn under the agreement.
How does this news affect Fermi and HyperGrid's future plans?
Despite the setback, Fermi said it will continue negotiating with the tenant and remains “confident” it will meet scheduled delivery dates.
The HyperGrid schedule calls for three 500,000‑square‑foot data centers by the end of 2026, using roughly 1 gigawatt of on‑site power. From there, the plan is to add about 1 gigawatt each year over the next decade, with full buildout targeted for 2032.
About ConstructConnect
At ConstructConnect, our software solutions provide the information construction professionals need to start every project on a solid foundation. For more than 100 years, our insights and market intelligence have empowered commercial firms, manufacturers, trade contractors, and architects to make data-driven decisions and maximize productivity.
ConstructConnect is a business unit of Roper Technologies (Nasdaq: ROP), part of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com
