Overview
- Fermi executed a binding 15‑year turnkey lease with AI cloud provider TensorWave for 222 megawatts of power at Project Matador, a deal Fermi says will produce roughly $6.5 billion in contracted revenue for the initial term.
- The contract gives TensorWave expansion rights for two additional data centers that could grow the partnership to more than 650 MW and is designed to support tens of thousands of next‑generation AMD Instinct GPUs.
- Phased delivery of the first 222 MW is scheduled to begin in the second half of 2027, but closing requires customary conditions including receipt of project guaranties, secured financing, and continued permitting and construction progress.
- Investors reacted strongly to the announcement with Fermi shares jumping by double‑digit percentages in trading after the news, and several analysts and firms reaffirmed positive ratings on the stock.
- The deal follows months of setbacks for Fermi — including a reported collapsed anchor negotiation, executive turnover, and scrutiny over permitting — and while it could validate the company’s private‑grid model it still faces financing, regulatory, and buildout risks that will determine whether Project Matador reaches its planned ~17 GW scale.