Fermi Inc. (NASDAQ: FRMI) secured more than $100 million in committed equipment financing from Keystone National Group, a private‑credit fund that specializes in asset‑backed lending. The commitment is part of a larger $200 million facility arranged by Cape Commercial Finance and is earmarked for the acquisition of high‑voltage equipment—breakers, transformers, substations and switchgear—required for the first 2.3 GW of power infrastructure at its Project Matador campus in Amarillo, Texas.
The new draw follows a $500 million turbine warehouse loan from MUFG, bringing the cumulative institutional equipment commitments to $600 million within a 30‑day period. Executive Vice President of Capital Markets John Donovan said, "On the heels of our $500 million turbine warehouse financing from MUFG, adding Keystone National Group's over $100 million initial commitment to the high‑voltage warehouse financing demonstrates we've secured over $600 million in institutional equipment commitments in 30 days – ensuring Fermi America has the backing needed to deliver on promises made. As Fermi America grows, these warehouse facilities will serve as cornerstones to Fermi America's asset procurement strategy."
Fermi’s behind‑the‑meter strategy seeks to secure power for AI data centers without the multi‑year delays of traditional grid interconnections. The strategy allows the company to lock in high‑voltage assets early, reducing exposure to supply‑chain bottlenecks and enabling faster deployment of its 11 GW private energy campus, which integrates natural gas, nuclear, solar, battery storage and utility‑grid power. The campus is a partnership with the Texas Tech University System and is positioned to supply dedicated, low‑carbon power to AI workloads.
Despite the financing milestone, Fermi Inc. is confronting a wave of securities‑fraud class action lawsuits that allege misrepresentations about tenant demand and a $150 million anchor‑tenant exit. The litigation introduces a significant headwind that has tempered investor enthusiasm and contributed to a decline in the company’s stock on February 20, 2026, even as the financing news was positive.
The warehouse financing structure is a key component of Fermi’s de‑risking strategy. By drawing on a $200 million facility, the company can recycle capital as equipment is purchased, allowing it to maintain liquidity while scaling the campus. The $100 million commitment from Keystone National Group, combined with the MUFG loan, demonstrates institutional confidence in the project’s execution timeline and the company’s ability to secure long‑lead equipment in a tightening supply environment.
CEO and co‑founder Toby Neugebauer said, "Strong institutional investor support continues to build behind Project Matador." He added, "This financing puts real muscle behind our strategy – securing long‑lead equipment early, staying ahead of the market, and executing with certainty." Managing Partner John Earl of Keystone National Group noted, "This financing helps Fermi America secure mission‑critical power generation and transmission assets toward its immediate 2026 deployment goals, as well as flexibility for future project growth."
The financing milestone signals progress toward Fermi’s goal of delivering 11 GW of dedicated, low‑carbon power for AI data centers. However, the ongoing litigation and the market’s mixed reaction underscore the dual nature of the company’s trajectory: strong execution capability on the one hand, and heightened legal and reputational risk on the other.
The event underscores the importance of warehouse financing in the renewable‑energy and AI infrastructure space, while also highlighting the need for companies to manage legal exposure when pursuing aggressive growth strategies.
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