Fermi Data Center REIT Faces Challenges Amid AI Infrastructure Boom

NEW YORK, New York – In 2025, interest in artificial intelligence (AI) infrastructure surged, significantly impacting companies like Fermi. Amid a backdrop of volatility, data center real estate investment trusts (REITs) initially saw tremendous growth, driven by the AI revolution.

However, the landscape shifted drastically in late January when a Chinese company announced a cost-effective method to train advanced AI models. This revelation sent shockwaves through the tech sector. NVIDIA‘s stock dropped by 17% in just one day, erasing nearly $600 billion from its market value. The fallout extended to other firms, causing data center REIT stocks such as Digital Realty Trust and Equinix to falter.

“2025 has been less than stellar for the data center REITs,” stated an investment manager, noting that major tech companies began establishing their own server farms, lessening reliance on external landlords.

Despite the turbulence, long-term trends indicate that established data center REITs are still flourishing. Digital Realty reported a remarkable 40% return in 2023, while Equinix experienced a 25% gain, and both continued to rise in 2024. By mid-2025, these REITs were trading at premium valuations, suggesting a strong growth outlook.

Fermi’s journey has been remarkable, condensing years of development into mere months. Industry experts remain divided on whether Fermi is a promising new player in AI infrastructure or an overly ambitious venture.

Potential investors should note that Fermi occupies a unique space in the market—it combines characteristics of a REIT, a high-growth tech company, and an infrastructure project. As a result, it doesn’t fit neatly into any one category, presenting advantages and risks.

As the market evolves, the critical question remains: What does the future hold for Fermi? Investors are urged to remain informed and ready to adapt their strategies.

Rick Perry’s Fermi seeks to combine real estate, energy, and advanced technology in a project that embodies the potential of AI infrastructure. The developments in 2025 reflect both the excitement and the hurdles that lie ahead for this ambitious REIT.