Shares of Fermi LLC (FRMI) surged more than 27% Wednesday afternoon after Citizens analysts linked the move to OpenAI's reported Ohio data center talks. Citizens stated in a research note that the news bodes well for the likelihood of a significant signed lease with Fermi, as the company attempts to sign its first lease on its developing 11 GW natural gas powered complex, according to TheFly. The proposed Ohio campus, which The Information reported could include financial backing from Nvidia, would rank among the largest AI infrastructure projects ever contemplated and could ultimately cost more than $500 billion when accounting for chips, power infrastructure, labor and construction expenses.
Citizens Analysts Link FRMI Rally to OpenAI Ohio Data Center Reports
OpenAI is reportedly in talks to lease a proposed 10-gigawatt data center campus on federal land in Ohio, in a deal that could include financial backing from Nvidia (NVDA), The Information reported. Citizens stated in a research note that the news bodes well for the likelihood of a significant signed lease with Fermi, as the company attempts to sign its first lease on its developing 11 GW natural gas powered complex, according to TheFly.
The firm added that Fermi already has permits in place to support 6 gigawatts of powered data center capacity and expects the remaining 5 gigawatts to be permitted in the near future. Citizens believes this positions Fermi as one of the fastest routes to large-scale power and compute availability, with initial capacity potentially coming online as early as 2027, reported TheFly.
Ohio Campus Could Cost Over $500 Billion at Full Scale
The proposed Ohio campus would rank among the largest AI infrastructure projects ever contemplated. The project could ultimately cost more than $500 billion when accounting for chips, power infrastructure, labor and construction expenses, The Information report stated.
Under the reported structure, OpenAI would lease the facility over the long term and operate the computing equipment housed there. The first phase, expected to deliver roughly 800 megawatts of capacity, could come online in 2028.
The project would also signal OpenAI's growing interest in controlling dedicated data center capacity rather than relying solely on cloud providers such as Microsoft, Amazon and Oracle.
Nvidia Considered for Financial Guarantees in Ohio Project
OpenAI would deploy Nvidia hardware at the Ohio campus site, while Nvidia could provide financial guarantees supporting both OpenAI's lease obligations and future project financing, according to the report in The Information. Such an arrangement would represent a significant expansion of Nvidia's efforts to help fund AI infrastructure projects.
Though Nvidia has previously expressed interest in supporting customer data center investments, it has yet to publicly commit to a project of this scale.
OpenAI has previously explored similarly ambitious infrastructure plans. Last year, the company and Nvidia discussed a potential arrangement involving up to $100 billion in funding for AI data center development, though the deal was never finalized. Nvidia later invested $30 billion in OpenAI through an equity transaction, reported The Information.
Retail Traders Turn Bullish on FRMI Stock
On Stocktwits, retail sentiment around FRMI stock turned 'bullish' from 'bearish' a day ago. One bullish retail trader cited the Citizens note as a key driver behind FRMI's rally. Another bullish trader projected significant upside for FRMI shares, saying it could touch $50.
In the past 12 months, FRMI stock has fallen 66%.
FAQ
What caused Fermi stock to surge on Wednesday?
FRMI shares surged more than 27% Wednesday afternoon after Citizens analysts said reports of OpenAI exploring a 10-gigawatt data center lease in Ohio could be a positive development for Fermi. Citizens stated the news bodes well for the likelihood of a significant signed lease with Fermi as the company attempts to sign its first lease on its developing 11 GW natural gas powered complex.
How much could the Ohio data center project cost?
The proposed Ohio campus could ultimately cost more than $500 billion when accounting for chips, power infrastructure, labor and construction expenses, according to The Information report. The first phase, expected to deliver roughly 800 megawatts of capacity, could come online in 2028.
What role could Nvidia play in the Ohio data center project?
Nvidia could provide financial guarantees supporting both OpenAI's lease obligations and future project financing, according to The Information. OpenAI would deploy Nvidia hardware at the Ohio campus site. Last year, OpenAI and Nvidia discussed a potential arrangement involving up to $100 billion in funding for AI data center development, though the deal was never finalized.
