Fermi America, the company behind the proposed up to 11GW data center campus in Amarillo, Texas, has been hit with a class action lawsuit.

The suit filed by national plaintiffs' law firm Berger Montague PC was made on behalf of investors who purchased or otherwise acquired Fermi securities during the period of October 1, 2025, through December 11, 2025, which includes the company’s initial public offering (IPO).

According to the lawsuit, the complaints arose following the withdrawal of Fermi’s first tenant for its data center campus, which would have supported construction costs for the facility.

Fermi announced that it had signed a non-binding letter of intent (LOI) with an unnamed “investment grade-rated tenant” to be the first customer at the campus in September.

According to reports, the deal was valued at $150 million. However, a statement from the firm earlier this month said that the exclusivity period detailed in the LOI had now expired and that the potential tenant had terminated the agreement, though discussions continue over a lease for data center space on the campus.

Fermi subsequently denied that Amazon was the tenant that canceled the contract. The denial followed a report from Business Insider, which said that Fermi CEO Toby Neugebauer told the publication that Amazon was the tenant during a phone call.

After the announcement, Fermi’s share price fell by more than 33 percent, closing at $10.09, well below its IPO price.

Following the withdrawal, late last year, it was reported that US law firm Robbins Geller Rudman & Dowd was investigating the firm over potential violations of federal securities laws resulting from the collapse of an anchor tenant agreement tied to the project.

Fermi, a company co-founded by former Texas governor and energy secretary Rick Perry, is planning to develop a massive 11GW data center and energy campus near Amarillo in Texas on land owned by the Texas Tech University system. If realized, Project Matador will span 18 million sq ft (1.67 million sqm) and would utilize a combination of on-site energy sources, including natural gas, solar, wind energy, and nuclear energy.

Despite having no data centers in operation and little experience in the sector within its executive team, the company raised $682 million in an October IPO that valued the business at $15 billion.

The first two phases of Project Matador, which would involve the construction of an initial 1.1GW of data center capacity, are expected to cost $2bn.

It is thought that controversial big data and surveillance tech firm Palantir is being lined up as a potential tenant at the campus.