Fermi Inc. has a new anchor prospect for its Project Matador campus in the Texas Panhandle, and the tenant it announced in August is no longer part of the plan. In its third-quarter earnings release dated Nov. 12, 2026, which the company filed with the SEC as Exhibit 99.1 to a Form 8-K, Fermi said it had entered into agreements with an undisclosed investment-grade hyperscale customer to advance an initial 600 MW of power capacity at the site, beginning in 2027. In the same release, Fermi said that it and TensorWave had terminated their data center lease, and that the related AMD credit support agreement was also terminated.
The new arrangement is not yet a lease. According to the release, the parties continue to work toward a definitive long-term lease, and the customer's identity remains confidential. What Fermi has disclosed is a set of agreements with dollar amounts attached. The company says the customer is making these financial and development commitments ahead of finalizing a lease.
What Fermi Says the Hyperscaler Has Agreed To
The 8-K exhibit describes three agreements tied to the proposed 600 MW development:
- A $200 million prepayment agreement that Fermi says provides for substantial upfront customer funding in connection with the proposed 600 MW development.
- A $15 million early construction and site development agreement, which Fermi says establishes a framework for advancing site preparation and construction.
- A $90 million structural steel and building materials purchase agreement, which Fermi and the customer are still finalizing.
Yahoo Finance's independent summary of the release describes the same structure. It reports the $200 million prepayment for a proposed 600 MW starting in 2027, a separate $15 million early construction agreement, and a $90 million steel and materials agreement still being finalized. It also notes that the definitive long-term lease has not been executed.
Chief Executive Lee McIntire described the commitment in the release. An investment-grade hyperscaler, he said, "has signed up for 600 megawatts and committed more than $200 million up front to accelerate construction at Project Matador with an additional $90 million contemplated." McIntire also said that if the company successfully turns its pipeline of prospective customers into leases, it would completely fill the site's 2.2 gigawatts of current capacity. The release does not identify the other prospective customers in that pipeline or give a timeline for them.
Taken together, these terms put the customer's money and materials commitments ahead of the lease. In the release, the prepayment, site work and steel purchase all come before the definitive long-term lease. None of the sources reviewed for this article give the expected lease term, rent or delivery schedule beyond the 2027 start.
The TensorWave Lease and AMD Backstop Are Gone
The release states that Fermi and TensorWave have terminated the Data Center Lease and Services Agreement signed in August 2026. It also states that the AMD credit support agreement associated with TensorWave is terminated. The Nov. 12 release ends that structure.
The release does not say which party started the termination or whether either side owes a termination payment. It does not link the end of the TensorWave lease to the new hyperscaler agreements. DataCenterFeed is not drawing that connection either.
The Site and the Landlord
Fermi's release says Fermi and the Texas Tech University System continue to work together to advance Project Matador, including the conditions under the land lease that precede vertical construction. The release includes a statement from Texas Tech University System Chancellor Brandon Creighton reaffirming the partnership; Yahoo Finance describes it as reaffirming the system's land lease partnership with Fermi. Fermi's release does not list those conditions in detail.
On its investor relations site, Fermi describes the behind-the-meter Project Matador campus as expected to integrate combined-cycle natural gas generation, new nuclear power, utility grid power, solar and battery energy storage. The company calls itself a developer of a "17 GW" next-gen private grid. In the release, Fermi says the project is expected to ramp to approximately 17 GW subject to entering into binding customer agreements, so that figure is the company's description of the planned campus, not installed capacity.
The same page lists site-work metrics as of Sept. 30, 2026:
- 4.6 miles of gas line installed
- 11.3 miles of fencing installed
- 7.2 miles of water lines installed
- About 300 acres already cleared or stripped
The Third-Quarter Numbers
Fermi describes itself as pre-revenue. Both the release and Yahoo Finance's summary report a third-quarter net loss of $141.6 million, or $0.22 per basic and diluted share, and Yahoo reports no revenue for the quarter. General and administrative expense was $142.2 million. Per the release, that figure includes $65.8 million of non-cash stock compensation and $21.5 million of financial advisory fees settled through the issuance of common stock.
The 8-K exhibit reports $315.5 million in total cash and restricted cash as of Sept. 30, 2026. It also reports $133.4 million of capital invested in property, plant and equipment in the quarter and $759.5 million for the first nine months of the year. The release reports $958.4 million of debt, net, reflecting a $463.0 million net increase in borrowings under convertible senior notes and equipment financing facilities.
For scale, a $200 million up-front commitment from a customer would be large compared with the $315.5 million in cash and restricted cash Fermi reported at quarter end. The release presents it as a prepayment agreement tied to a proposed development, not as revenue already earned.
What Is Firm and What Is Not
Here is how the commitments stand, based on what the sources say:
- Entered into, per the release: the $200 million prepayment agreement and the $15 million early construction and site development agreement with the unnamed hyperscale customer. Also terminated: the TensorWave lease and the AMD credit support agreement.
- Still being finalized: the $90 million structural steel and building materials purchase agreement.
- Not yet signed: the definitive long-term lease for the 600 MW.
- Not disclosed: the customer's name.
- Subject to conditions: vertical construction, which the release says is preceded by conditions under the land lease with the Texas Tech University System.
The release describes commercial agreements and site preparation. It does not report new permits, hearings or approvals for the 600 MW development.
What Happens Next
According to the 8-K exhibit, Fermi and the customer continue to work toward a definitive long-term lease for the initial 600 MW, and the $90 million structural steel and building materials agreement is still being finalized. The release gives no date for either. Separately, certain conditions under the land lease must be met before vertical construction can start at Project Matador. The company scheduled its third-quarter conference call for 9 a.m. ET on Nov. 12. Its investor relations site lists the webcast, presentation, press release and prepared remarks. The release also says Fermi's Form 10-Q for the quarter ended Sept. 30, 2026, will be filed with the SEC.
