Why did Amazon cancel its $150 million advance to Fermi America?

Amazon withdrew the advance after an exclusivity period ended and they were hesitant to spend funds during ongoing negotiations.

What is Fermi America's Project Matador?

Project Matador is an 11-gigawatt data-center campus being developed in the Texas Panhandle to meet AI energy demands.

How much was the deal between Amazon and Fermi America worth?

The potential deal between Amazon and Fermi America was valued at over $20 billion for the next 20 years.

Home / Business and Economy / Amazon Pulls $150M Advance from Texas Data Center

Amazon Pulls $150M Advance from Texas Data Center

18 Dec

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Summary

Amazon withdrew a $150 million construction advance from Fermi America.
Fermi America's stock value dropped nearly by half after the cancellation.
The deal with Amazon was worth over $20 billion for the next 20 years.

Amazon Pulls $150M Advance from Texas Data Center

Amazon, a prospective tenant, has withdrawn a $150 million Advance in Aid of Construction Agreement from Fermi America's 11-gigawatt data-center project in the Texas Panhandle. This withdrawal, occurring after an exclusivity period ended, caused Fermi's stock to plunge by nearly half on December 12. CEO Toby Neugebauer confirmed Amazon's identity as the tenant, noting that negotiations for a deal potentially worth over $20 billion spanning 20 years are ongoing.

Neugebauer emphasized that discussions with Amazon remain constructive, characterizing the situation as a typical negotiation for a large-scale transaction. The issue stemmed from Amazon's hesitation to commit funds after the exclusivity period concluded. Fermi America's project, codenamed Project Matador, is a significant undertaking aimed at meeting the surging energy demands of AI technology.