The energy infrastructure company signed a 15-year turnkey data-center lease with AI cloud provider TensorWave for a facility backed by 222 megawatts of power.
- Delivery of the first phase is set to begin in the second half of 2027.
- The agreement is projected to generate about $6.5 billion in contracted revenue over the initial term.
- Fermi is continuing talks with other potential hyperscale and enterprise customers.
Shares of Fermi Inc. (FRMI) surged as much as 35% in after-hours trading on Monday after the company announced its first binding customer lease at the Project Matador campus in Texas.
Landmark Deal with TensorWave
The energy infrastructure company signed a 15-year turnkey data-center lease with AI cloud provider TensorWave for a facility backed by 222 megawatts of power. Once complete, the site is expected to house tens of thousands of next-generation AMD Instinct GPUs for large-scale AI training and inference.
The agreement is projected to generate about $6.5 billion in contracted revenue over the initial term. Expansion rights could grow the partnership to more than 650 megawatts across three phases. Delivery of the first phase is set to begin in the second half of 2027.
Strong Vote of Confidence
“A lease of this size and this term is a tremendous vote of confidence in Fermi,” said Marius Haas, chairman of the board. “In delivering this first binding agreement, we’ve now fulfilled the most important objective we shared with the market in May.”
TensorWave CEO Darrick Horton added that power remains the critical constraint in AI infrastructure and that Fermi’s Project Matador matches the scale and timeline his customers need.
Project Matador Progress
Construction is already well underway on the Texas Panhandle campus, which is planned to reach about 17 gigawatts. Roughly 6 gigawatts have been permitted, and more than $1.5 billion has been invested so far, with first power targeted for later this year.
Recent milestones include the July arrival of three Siemens SGT6-5000F natural gas turbines rated up to 780 MW combined at the Port of Houston, plus agreements with Primoris and TSK to advance engineering and construction of the initial power phases.
Fermi is continuing talks with other potential hyperscale and enterprise customers. The new lease marks a key commercial milestone for the company as it builds one of the largest private power campuses designed specifically for AI.
How Did FRMI Retail Traders React?
On Stocktwits, retail sentiment around FRMI stock rose from bearish to neutral territory over the past 24 hours, while message volume stayed at low levels.
A Stocktwits user said they were hoping Fermi would announce deals with several different customers instead of just one.
Another user voiced optimism for the company, announcing another tenant lease during earnings on Thursday and sending the stock rallying over $20.
Another user cheered the company for finally stepping into operating revenue generation. However, revenue from the TensorWave lease will only start from the second half of 2027.
FRMI stock has fallen 27% year-to-date.
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