 has agreements with an undisclosed investment-grade hyperscaler to advance 600MW of power capacity at its Project Matador campus in th...](https://cdn.baxtel.com/data-center/fermi-secures-600mw-hyperscaler-deal-terminates-tensorwave-lease/logo/large_fermi-secures-600mw-hyperscaler-deal-terminates-tensorwave-lease-featured(2).jpg){kind=logo}
Fermi America has agreements with an undisclosed investment-grade hyperscaler to advance 600MW of power capacity at its Project Matador campus in the Texas Panhandle. The customer will prepay $200 million and commit $15 million to early co
Featured: Local broadcast report imagery of the Project Matador development site in Carson County near Amarillo.nstruction, according to the company's Nov. 12 third-quarter release. The same announcement confirms that Fermi's August lease with AI cloud provider TensorWave has been terminated.
Fermi develops and operates Project Matador, which it plans to lease to AI customers. The hyperscaler is committing capital ahead of a lease. Its $200 million prepayment backs the proposed 600MW development, and a $15 million early construction and site development agreement lets the customer begin site preparation. Fermi and the customer are also finalizing a $90 million agreement for structural steel and building materials, which would let the customer use long-lead materials Fermi bought in advance. Development of the first 600MW begins in 2027, and the customer's identity remains confidential.
> *"Hyperscalers want sites that are ready with permitted power, and Fermi's Project Matador is one of few that can meet that demand today,"* said Lee McIntire, Fermi chief executive.
Fermi and TensorWave terminated the Data Center Lease and Services Agreement they signed in August 2026, and the AMD credit support agreement tied to that lease is also terminated, Data Center Dynamics reported. Baxtel reported in October that the August lease covered 222MW of facility power and about $6.5 billion of contracted revenue over 15 years, with expansion rights that could have taken TensorWave past 650MW.
Fermi reported a $141.6 million net loss for the quarter ended Sept. 30, with $958.4 million of net debt and $315.5 million of cash and restricted cash. Project Matador sits on land leased from the Texas Tech University System and is planned to ramp to about 17GW. Texas Tech Chancellor Brandon Creighton said the system remains committed to the project.
Investing.com reported the stock closed up 5.52% at $1.91 on Nov. 12, about 91% below its 52-week high. "As we transition to vertical construction for lease requirements, so too our funding is transitioning from Fermi corporate cash to customer prepayments and project-level debt and equity," said Rob Masson, Fermi chief financial officer.
Baxtel tracks 2,466MW at Fermi America's HyperGrid campus near Amarillo, within the Amarillo (Panhandle) market of 43 data centers run by 15 providers.
Investing.com reported management expects the $200 million prepayment by Nov. 13, while the $90 million materials agreement and a definitive long-term lease remain unfinished.
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