Fermi Signs 600 MW Hyperscaler Deal After Ending TensorWave Lease

The Tip Desk · November 12, 2026 · 2 min read

An undisclosed investment-grade hyperscaler committed $200 million to start 600 MW at Project Matador in 2027 as Fermi posted a $141.6 million third-quarter loss.

Fermi Inc. (FRMI), operating as Fermi America, entered agreements with an undisclosed investment-grade hyperscaler to advance an initial 600 megawatts of power capacity at Project Matador beginning in 2027, including a $200 million prepayment, a $15 million early construction and site development agreement, and a $90 million structural steel and building materials purchase still being finalized.

The company also terminated the TensorWave Data Center Lease and Services Agreement signed in August 2026 and the associated AMD credit support agreement, reversing the first anchor-customer lease it had announced in the prior quarter. Chief Executive Officer Lee McIntire said the hyperscaler’s $200 million upfront commitment, with an additional $90 million contemplated, was intended to accelerate construction and that converting the company’s pipeline of prospective customers into leases would fill its 2.2 gigawatts of current capacity.

The parties continue to work toward a definitive long-term lease and finalization of the steel purchase agreement. The customer’s identity remains confidential. Fermi said the agreements reflect a strategy of investing early in infrastructure readiness and attracting customer capital earlier in the project lifecycle. Texas Tech University System Chancellor Brandon Creighton reaffirmed the partnership on Project Matador, including conditions under the land lease that precede vertical construction.

For the three months ended September 30, 2026, Fermi reported a net loss of $141.6 million, or $0.22 a share, versus a $346.8 million loss, or $0.84 a share, a year earlier, when other expense included a $309.0 million charge. General and administrative expenses were $142.2 million and included $65.8 million of non-cash stock compensation and $21.5 million of financial advisory fees settled through the issuance of common stock. The company remained pre-revenue and in its development phase, with spending tracking buildout rather than operations.

Property, plant, and equipment, net, rose to $1.67 billion as of September 30, 2026 from $935.3 million as of December 31, 2025, after $133.4 million of capital invested in the quarter and $759.5 million for the nine months ended September 30, 2026. Cash and cash equivalents declined to $286.3 million from $408.5 million at year-end 2025; total cash and restricted cash was $315.5 million. Debt, net, increased to $958.4 million from $109.8 million at year-end 2025, a $463.0 million net increase in borrowings under convertible senior notes and equipment financing facilities.

Fermi said it remains focused on disciplined capital deployment matched to commercial progress. Subject to binding customer agreements, the company said Project Matador is expected to ramp to approximately 17 gigawatts, with capital deployment matched to commercial commitments. The campus is described as secured or under long-term lease with nearly $1.7 billion invested in buildout to date.