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Data centre-focused real estate investor Fermi has denied media reports linking Amazon to its stalled Texas data centre project. The company clarified that Amazon was never involved as a prospective tenant or funding partner for the development. The statement followed a report suggesting Amazon had held talks to lease space and later pulled out of a construction funding agreement. Fermi said these claims were incorrect and misleading. Earlier, the company disclosed that an unnamed prospective tenant had terminated an agreement that could have contributed up to USD 150 million towards construction, triggering a sharp fall in its share price. Fermi continues to position its Texas project as part of its long-term data infrastructure expansion strategy.
Data centre-focused real estate investment company Fermi has rejected a media report that suggested Amazon was in talks to become a tenant at its Texas project and later pulled out of funding support. The company clarified that neither Amazon nor any of its entities was involved in the stalled development in the manner reported. Advertisement
The clarification came after a report by Business Insider indicated that Amazon had been engaged in discussions to become the first tenant at Fermi America's Texas data centre facilities. The report attributed the information to comments made by Fermi America's chief executive, Toby Neugebauer, and stated that discussions between the parties were ongoing and constructive. It also suggested that the termination of an Advance in Aid of Construction Agreement did not reflect a breakdown in negotiations.
Responding to these claims, Fermi America said both the company and its chief executive strongly denied the report's assertions. A spokesperson stated that the claims linking Amazon to the project or to the withdrawal of funding were incorrect.
Amazon, meanwhile, did not issue any response to requests for comment on the matter.
The denial follows a disclosure made by Fermi last week, when the company said that a prospective tenant had ended an agreement to support construction at its Texas site. Fermi did not identify the tenant at the time. The announcement had a sharp impact on investor sentiment, with the company's shares falling 34 percent after the disclosure.
According to Fermi, the terminated agreement would have allowed the customer to lease a portion of its Project Matador data centre campus in Texas. Under the arrangement, the tenant could have contributed up to USD 150 million towards construction financing. The Advance in Aid of Construction Agreement is commonly used in large data centre developments, where anchor tenants provide upfront funding in exchange for long-term leasing commitments.
Fermi has been positioning Project Matador as part of its broader push into large-scale data infrastructure across the United States, targeting hyperscale and enterprise clients amid rising demand driven by cloud services and artificial intelligence workloads.
Source Reuters
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