Fermi Secures 6.5 Billion Dollar Texas Lease for Major Artificial Intelligence Hub
New York, Monday, 10 August 2026.
Fermi signed a $6.5 billion, 15-year lease with TensorWave on August 10, 2026, to supply 222 megawatts of power for Texas artificial intelligence infrastructure starting in late 2027.
Financial Structure and Lease Terms
The binding lease agreement executed on August 10, 2026, locks in revenue streams through an initial 15-year term [1][2]. While the total contracted revenue stands at approximately $6.5 billion, the annualized revenue value of this initial phase amounts to approximately 0.433 billion per year over the contract duration [1][2]. This financial commitment underscores the scale of the partnership between Fermi Inc. and TensorWave TEX1, LLC [1][2].
Delivery of the facility is scheduled to begin in the second half of 2027, following customary conditions including receipt of required guarantees [2]. The lease also carries two five-year renewal options, providing potential for extended engagement beyond the initial term [2]. Fermi Inc. (NASDAQ: FRMI) confirmed the execution of the agreement through a company statement released on the same day [2].
Capacity Expansion and Project Matador
Expansion rights exist for two additional data centers, potentially bringing total partnership capacity to more than 650 megawatts [1][2]. The initial 222 megawatts represents 34.154 percent of the total potential partnership capacity if all expansion rights are exercised [1][2]. This phased approach allows for scalable growth aligned with demand for artificial intelligence infrastructure [1][2].
Broader development at Project Matador includes 6 gigawatts of permitted capacity out of a 17 gigawatt plan, with over $1.5 billion invested to date [1][2]. First power for the site remains targeted for 2026 [alert! ‘status of 2026 first power target not confirmed as met in source text’] [1][2]. The campus is located in Carson County, Texas, leveraging regional advantages for energy-intensive operations [1][2].
Technology and Strategic Guarantees
Technical specifications indicate the facility will support tens of thousands of AMD Instinct GPUs for AI training and inference [1][2]. Certain lease obligations are expected to be guaranteed by an unnamed entity described as one of the global leaders in AI [1][2]. This guarantee structure aims to mitigate risk for the long-term lease agreement [1][2].
Marius Haas, Chairman of the Board of Fermi Inc., noted the agreement fulfills the company’s primary objective communicated to the market in May [2]. The lease is subject to customary conditions, including receipt of required guarantees and financing [2]. TensorWave operates one of the world’s largest all-AMD GPU clouds, supported by investment from firms including AMD Ventures [1][2].