Fermi denies report that Amazon was prospective tenant in stalled project

Dec 17 (Reuters) - Data ⁠center real ⁠estate ‍investment company Fermi on Wednesday denied a report that said Amazon was a prospective ‍tenant and that it withdrew funding ​from the company's project.

Business Insider reported earlier in the day ​that Amazon has been in talks to become the "first tenant" at Fermi America's Texas data centers, citing the ​data center's top boss Toby Neugebauer.

The report also stated that the talks between Fermi ​and the tenant remained "constructive", and that the ending of the ‌so-called Advance in Aid of Construction Agreement did not indicate a breakdown.

"Fermi America ​and its CEO, Toby ⁠Neugebauer, categorically deny Business Insider’s claim," Fermi America's spokesperson told Reuters in ‌an emailed statement.

Amazon did not immediately respond to Reuters' requests for comment.

Last Friday, Fermi said a ‌prospective tenant had terminated a deal to help fund ‌construction at its Texas site without disclosing its identity. Its shares dropped 34% after the announcement.

Under the terms of ‍the agreement, the customer would have leased part of Fermi's Project ⁠Matador site in Texas and could have provided up to $150 million to help finance construction.

(Reporting by Angela Christy in Bengaluru; Editing by Subhranshu Sahu and Harikrishnan Nair)

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