Fermi America signs $200 million prepayment with hyperscaler for 600 MW at Project Matador

Fermi Inc., which operates as Fermi America, said on 12 November 2026 that it has signed agreements with a hyperscale customer that has an investment-grade rating and that it did not name, to move forward the first 600 MW of power at Project Matador, its Texas Panhandle campus, starting in 2027.

The commitments signed so far are a $200 million prepayment agreement linked to the planned 600 MW development and a $15 million agreement covering early site development and construction, which Fermi says is meant to start site preparation and building work as soon as possible so that the customer's schedule holds. Fermi says the customer is committing money and development work before a lease is finalised. No definitive long-term lease has been signed yet, and Fermi is keeping the customer's identity confidential.

The customer and Fermi are also finalising a $90 million agreement for building materials and structural steel. Fermi says it would let the customer draw on long-lead materials that Fermi bought in advance, speeding up the data centre buildings the customer plans at Project Matador.

Separately, Fermi and TensorWave have ended the lease and services agreement for data centre space that they signed in August 2026, and the related AMD credit support agreement has also been terminated.

Fermi says it is still working with the Texas Tech University System to meet the conditions in its land lease that come before vertical construction can begin. It says power at Project Matador is to be delivered behind the meter over a private grid that Fermi builds and operates at the site, and that the campus is expected to combine combined-cycle gas generation, nuclear power, power from the utility grid, solar and battery storage. If customers sign binding agreements, Fermi expects the project to grow to about 17 GW.