Amazon is the prospective tenant that withdrew a $150 million advance for Fermi America’s massive data-center project in the Texas Panhandle, according to Fermi CEO Toby Neugebauer, who confirmed the company’s involvement in a December 15 phone call with Business Insider. The development, known as Project Matador, aims to deliver 11 gigawatts of power across 12 facilities over the next decade, making it one of the most ambitious data-center initiatives tied to the AI boom. In September, Fermi announced a nonbinding letter of intent with an investment-grade tenant to anchor the project, with the first gigawatt of power committed to the partner. However, on December 12, the company’s stock dropped nearly 50% after a securities filing revealed that the unnamed prospective tenant had canceled the $150 million Advance in Aid of Construction Agreement (AICA), which was intended to kickstart construction. The cancellation followed the end of an exclusivity period. Neugebauer confirmed that Amazon was the tenant behind the deal, describing it as a major agreement that would span 20 years and involve payments exceeding $20 billion. He said the lead Amazon negotiator reached out to him on Thursday, December 12, after the exclusivity window closed. While the AICA was canceled, Neugebauer emphasized that the broader negotiations remain ongoing and constructive. “It’s just a normal negotiation,” he said. “Their issue was spending money after the exclusive period had ended.” He expressed confidence that the process would continue, noting that such large-scale deals naturally take time. “It’s a big deal,” he said. “Big deals take longer.” Lisa Levandowski, a spokesperson for Amazon, declined to comment. The project is built on a 99-year ground lease with the Texas Tech University System, which is contingent on a signed letter of intent. The December 12 filing clarified that none of the $150 million had been spent, and the letter of intent remains active. Cantor Fitzgerald analysts, who spoke with Fermi management, said the company reported that the anchor tenant had proposed last-minute changes to the pricing structure that were unacceptable. The firm also noted that Fermi is actively engaged with two additional potential tenants and in discussions with four others. Fermi America was founded less than a year ago by Neugebauer, former U.S. Energy Secretary Rick Perry, and Perry’s son Griffin. The company went public in September, raising over $680 million at a $21 share price. At the time, the IPO valued the company at nearly $14 billion. However, recent market volatility has driven the company’s valuation down to below $6 billion. In October, Neugebauer told the Amarillo City Council that Palantir had also shown interest in the site, calling the company “our nation’s tip of the spear in the AI war” and saying it would be visiting the site shortly. The company’s future remains tied to securing a major anchor tenant, with Amazon now at the center of the next phase of negotiations.