Fermi Lands $6.5 Billion TensorWave AI Data Center Lease as Stock Jumps About 20%
Fermi secured AI cloud provider TensorWave as the first binding tenant for Project Matador in Texas under a 15-year lease expected to generate about $6.5 billion, with expansion rights that could take the relationship above 650 MW.
Why it matters: The binding lease validates a major AI campus, demonstrates the commercial value of power-secured data-center capacity, and adds another large-scale deployment path for AMD-based AI infrastructure.
Fermi has secured its first binding customer for the Project Matador AI infrastructure campus in Texas, signing a long-term lease with artificial-intelligence cloud provider TensorWave. The initial 15-year agreement is expected to generate approximately $6.5 billion in contracted revenue and covers a deployment supported by roughly 222 megawatts of power. The agreement includes expansion rights for two additional data centers that could increase the relationship to more than 650 megawatts. Investors treated the lease as a major validation of the project, with Fermi shares jumping roughly 20% after the announcement. TensorWave is building its AI cloud around AMD accelerators, making Project Matador part of the expanding infrastructure market supporting alternatives to Nvidia-dominated AI computing. The first phase is expected to begin occupancy in the second half of 2027.