Fermi to Lease 222 MW to TensorWave in $6.5 Billion Deal
A 15-year binding phase-one lease at Project Matador, with AMD credit support and two options to triple TensorWave's footprint.
Fermi (FRMI) signed a 15-year binding phase-one lease with TensorWave for 222 megawatts of total facility power at the Project Matador campus, with contracted revenue of about $6.5 billion over the initial term.
TensorWave, described as a premier Neocloud provider, becomes the first customer at the site. The agreement includes two expansion options that would allow TensorWave to triple the size of its footprint on the campus over time.
The company said the lease is backed by credit support from AMD. Phased delivery is expected to begin in the fourth quarter of 2027 and be complete in early 2028.
Fermi framed the deal as the start of a construction phase rather than a development-only pipeline. The board appointed Lee McIntire as chief executive officer to lead the move from development into construction and first power. McIntire, an independent director since September 2025, has more than 40 years of experience across Bechtel, CH2M Hill, and TerraPower, including large-scale natural gas generation, advanced nuclear programs, and civil mega-projects.
The company had been engaged with multiple prospective customers and potential strategic and joint-venture partners in recent months. On August 11 it announced a build-own-operate-transfer alliance with Hillcore Energy Capital Corporation for about 2.6 gigawatts of incremental power generation at Project Matador. Combined with Fermi's own generation program, the framework would double planned on-site generation to 4.8 gigawatts within about 30 months. Hillcore and its partners would finance, construct, own, and operate the plant under a long-term ground sublease, with Fermi committing no capital and issuing no debt. First power of about 350 megawatts is targeted within 24 months of notice to proceed, with later blocks triggered only by contracted end-user demand and each power purchase agreement matched to the corresponding customer lease.
The 15-year, multi-hundred-megawatt lease with AMD credit support sits alongside other long-duration AI-infrastructure contracts in the sector. Hut 8 Corp. (HUT) signed a 15-year, 245-megawatt lease at River Bend with a $7.0 billion base-term value and a Google financial backstop. CleanSpark, Inc. (CLSK) announced a 20-year, 175-megawatt lease with about $6.6 billion of contracted revenue, with deliveries expected to begin in the fourth quarter of 2027. Riot Platforms, Inc. (RIOT) has contracted 241 megawatts of critical IT capacity with AMD and a frontier AI lab, including a 20-year, 191-megawatt lease expected to generate about $9.1 billion over the initial term.
Subsequent power blocks at Matador would be triggered only by contracted end-user demand, linking generation buildout to signed commercial demand rather than forecasts.