Energy Developer Fermi Secures $6.5 Billion Customer Deal for AI Power Campus

2026-08-13 companies

New York, Thursday, 13 August 2026.
Fermi Inc. secured its first anchor customer in a $6.5 billion, 15-year lease while raising over $431 million to construct a massive artificial intelligence energy grid in Texas.

A Landmark Lease Agreement with TensorWave

On Monday, August 10, 2026, Fermi Inc. (NASDAQ: FRMI) achieved a pivotal operational milestone by securing its first anchor tenant for the massive Project Matador campus in Carson County, Texas [1][2][5]. The energy and infrastructure developer signed a 15-year turnkey binding lease agreement with AI cloud provider TensorWave [1][2]. The contract initially covers 222 MW of power capacity, which is projected to generate approximately $6.5 billion in total contracted revenue over the initial term, translating to roughly $433 million annually [1][4]. The partnership also includes expansion rights for two additional data centers, which could eventually scale the capacity beyond 650 MW across three phases [2][3].

Strategic Backing and Market Reaction

While TensorWave is a specialized AI cloud provider rather than an established hyperscaler, the lease agreement carries significant weight due to expected financial backing [3]. Fermi has disclosed that it expects certain obligations under the lease to be guaranteed by a global AI leader [2][3]. Industry speculation points to Advanced Micro Devices Inc. (AMD) as the likely guarantor, given that AMD Ventures is an investor in TensorWave and the cloud provider exclusively deploys AMD Instinct graphics processing units (GPUs) for its high-performance computing workloads [2][3]. Following the announcement, Fermi’s stock experienced a sharp upward trajectory [4][5][7]. On Tuesday, August 11, 2026, FRMI shares surged by 22.35%, closing at $7.19 per share on a heavy trading volume of 28.76 million shares, compared to its daily average of 18.99 million shares [7].

Strengthening Leadership and Strategic Alliances

Coinciding with its transition from a development-stage company to active construction, Fermi announced the appointment of Lee McIntire as its new Chief Executive Officer on August 11, 2026 [1][8]. McIntire, who has served as an independent director on Fermi’s board since September 2025, brings over 40 years of industry experience, including previous roles at Bechtel, CH2M Hill, and as CEO of TerraPower [1][8]. He succeeds former CEO Toby Neugebauer, who was terminated in April 2026 [8]. Marius Haas, Chairman of the Board, noted that McIntire’s extensive experience in delivering large-scale, complex infrastructure projects aligns with Fermi’s immediate objective of building its power facilities on schedule and on budget [8].

Collaborative Power Generation and Turbine Delivery

To mitigate the upfront capital required for its power generation infrastructure, Fermi finalized a major strategic alliance with Hillcore Energy Capital on August 12, 2026 [4][8]. Under a Build-Own-Operate-Transfer structure, the companies will develop a 2.6 GW power complex at the Project Matador campus, consisting of 2.5 GW of natural gas generation and 100 MW of solar and battery storage [8]. This arrangement allows Fermi to purchase electricity directly, reducing its initial cash requirements [4]. Additionally, the company recently took delivery of three Siemens F-class natural gas turbines at the Port of Houston, which are capable of producing 780 MW in simple-cycle mode and bring Fermi’s total landed power capacity to 1.5 GW [1][2].

Financial Performance and Capital Infusion

On August 13, 2026, Fermi reported its financial results for the second quarter ended June 30, 2026, posting a net loss of $25.8 million, compared to a net loss of $6.3 million for the same period in 2025 [1]. This represents a year-over-year net loss increase of 19.5 million. For the first six months of 2026, the company’s cumulative net loss reached $214.5 million [1]. As of June 30, 2026, Fermi held $91.7 million in total cash and restricted cash, while its total assets stood at $1.76 billion, heavily anchored by $1.55 billion invested in property, plant, and equipment [1]. Outstanding debt was reported at $520.1 million, reflecting a net increase of $98.8 million in equipment financing facilities [1].

Liquidity Management and Long-Term Outlook

To address liquidity shortfalls and support its ongoing infrastructure development, Fermi successfully completed a substantial capital raise subsequent to the quarter’s end [1]. The company issued over $431 million in 5.00% Convertible Senior Notes due 2031, yielding net proceeds of $416.8 million [1]. The initial conversion price is set at approximately $9.52 per share, and Fermi utilized capped call transactions to eliminate potential shareholder dilution up to an effective strike price of $14.64 per share [1]. Looking forward, Fermi aims to deliver its first 200 MW of commercial power by February 12, 2027, and scale up to 1.5 GW within 18 to 24 months [1]. While the company has reported zero revenue to date, its long-term strategy focuses on leveraging its secured assets and permits to convert its multi-billion-dollar lease into an operational AI power grid [4].

Sources

Corporate Earnings Fermi