How Investors May Respond To Fermi (FRMI) Hybrid Cooling Push For Water-Smart 11GW Texas Energy Campus

• Fermi America, in partnership with the Texas Tech University System, previously signed a non-binding MOU with cooling specialist MVM EGI Zrt. to engineer a next-generation hybrid cooling system for its planned 11-gigawatt private energy grid campus in West Texas, supporting combined-cycle gas and AP1000 nuclear units with construction of the first tower targeted for 2026.
• By centering water conservation through air-first hybrid cooling, closed-loop systems, and reclaimed water options, the collaboration aligns Fermi America’s long-term energy build-out with protection of the Ogallala Aquifer and regional community interests over a 99-year lease horizon.
• Next, we’ll explore how this focus on large-scale hybrid cooling and water conservation shapes Fermi America’s emerging long-term investment narrative.

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What Is Fermi's Investment Narrative?

For anyone considering Fermi, the big picture to believe in is a very long-dated build-out of a private 11-gigawatt grid that can convert today’s heavy losses and lack of revenue into durable cash flows backed by contracted customers. Near term, the key catalysts remain execution milestones: turning the US$150 million AIAC into physical infrastructure, bringing the first 500 MW of gas capacity online in 2026, and locking in EPC terms for the AP1000 reactors. The new hybrid cooling MOU with MVM EGI slots into that story as an enabler rather than a financial swing factor right now; it clarifies the water and environmental pathway more than it alters the earnings outlook. Given the sharp recent share price decline and high volatility, the bigger risk is still that cost, schedule, or regulatory surprises stretch an already loss-making balance sheet.

However, investors should be aware of how project delays or overruns could pressure Fermi’s funding needs. Fermi's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community span roughly US$3.50 to US$35.00 per share, underlining just how far apart individual views sit. Set against Fermi’s ongoing large losses and multi-year project timelines, that spread reinforces why it can help to compare several perspectives before deciding how this story might fit into your portfolio.

Explore 5 other fair value estimates on Fermi - why the stock might be worth less than half the current price!

Build Your Own Fermi Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fermi research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Fermi research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fermi's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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