Amazon Ghosts $150M Texas Data Center Deposit, Calls It ‘Normal Negotiation’
KEY POINTS
- •Amazon was the prospective anchor tenant that canceled a $150 million advance for construction on December 12.
- •Fermi America’s CEO, Toby Neugebauer, said discussions remain ongoing despite the cancellation, calling it 'normal negotiation.'
- •Fermi's project involves developing a massive 11-gigawatt data center campus on a 99-year lease with Texas Tech University.
In an epic episode worthy of a soap opera, billionaire Toby Neugebauer’s Fermi America watched its stock tank nearly 50% on December 12 after Amazon, the would-be anchor tenant for an 11-gigawatt Texas data-center bonanza, canceled a $150 million construction advance — apparently because the exclusivity period ran out and price haggling got hardcore. Neugebauer said the $20 billion, 20-year mega-deal remains "constructive," but the lead Amazon negotiator called just after the cancelation, presumably to say 'let’s keep talking... in tones as chill as the Texas Panhandle winter.' Founded less than a year ago by Neugebauer, ex-Energy Secretary Rick Perry, and Perry’s son, Fermi was riding high with a $14B IPO before dropping below $6B — all hinging on deals with big tech, including Palantir, their other AI war 'tip of the spear,' whatever that means. It's a classic ‘we haven’t signed yet but hope you stay’ dance, set on a 99-year lease with Texas Tech University, proving once more that securing a tenant in this climate is as tricky as convincing a toddler to eat vegetables.
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Amazon cancels $150M deposit on giant Texas data center but claims it’s just a 'normal negotiation.' That’s corporate for 'ghosting you harder than your last Tinder match.'
Fermi’s stock tanked after Amazon bailed on $150M down payment—looks like Texas sized chaos, not a data center.
When your $20B contract turns into a lengthy masquerade ball and the mysterious Amazon takes off the mask early.
Source: Businessinsider | Published: 12/17/2025 | Author: Dakin Campbell
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