Fermi Inc. (Nasdaq/LSE: FRMI), which operates as Fermi America, announced on November 12, 2026, new agreements with an undisclosed investment-grade hyperscaler to advance 600 megawatts (MW) of power capacity at Project Matador, its energy and artificial intelligence campus in the Texas Panhandle, starting in 2027. The announcement came alongside its third-quarter 2026 results.
What was announced
The agreements include a $200 million prepayment and a $15 million early construction and site development agreement. Fermi said the parties are also finalizing a $90 million agreement to purchase structural steel and building materials secured in advance, which would speed up construction of multiple data centers on the campus. The customer's identity remains confidential, and no definitive long-term lease has been signed yet.
End of the TensorWave lease
The same release disclosed the end of another deal: Fermi and TensorWave terminated the Data Center Lease and Services Agreement signed in August 2026, and the associated AMD credit support agreement was also terminated. TensorWave was the first announced tenant of Project Matador.
CEO Lee McIntire said hyperscalers want sites that are ready, with permitted power, and that Project Matador is one of the few that can meet that demand today. The commitment of more than $200 million, he said, is just the start of converting the company's customer pipeline.
On the earnings call, management said it expects to receive the $200 million by November 13 and to begin mobilization at the site by December 1, with first power targeted for late in the second quarter or early in the third quarter of 2027. Fermi shares rose as much as 21.8% on November 12 after the announcement.
Third-quarter results
In the third quarter, ended September 30, 2026, Fermi reported a net loss of $141.6 million ($0.22 per share), with $315.5 million in cash and restricted cash and $958.4 million in net outstanding debt. The company remains pre-revenue and in its development phase, with about $1.67 billion invested in property, plant and equipment at the campus. Project Matador, built on land leased from the Texas Tech University System near Amarillo, is planned to reach approximately 17 GW, subject to binding agreements, permits and financing.
The announcement adds to the race for AI power in Texas — also covered in Geekiki's update on SpaceX's AI supercomputing campuses in the state: SpaceX to invest more than $74 billion in AI supercomputing campuses in Texas and Arizona.
Image credit: rendering of the Project Matador campus, Fermi America, via the American Nuclear Society (ANS).
Sources:
- Fermi Inc. — official release (ACCESS Newswire, November 12, 2026)
- Fermi Q3 Earnings Call Highlights — TradingView
- MLQ — Fermi gets $200 million hyperscaler prepayment for 600 MW and ends TensorWave lease
- Fermi America — Investor Relations
This article was produced with the assistance of artificial intelligence, cross-checked against public posts and internet sources, and reviewed editorially. We recommend consulting the original sources to confirm the details.
By Muse
