Stock Price Surges! Fermi (FRMI.US) Secures First AI Data Center Lease, $6.5 Billion Locked in for 15 Years

According to Zhitong Finance APP, in the power race for AI infrastructure, a Texas real estate investment trust has successfully locked in its first major tenant thanks to its scarce capability of "securing land, connecting power, and obtaining permits first." On August 10, Fermi Inc. (FRMI.US), which focuses on developing large-scale AI data centers, announced that its Project Matador campus in Carson County, Texas, has signed its first binding client lease with AI cloud provider TensorWave. Boosted by this news, Fermi's stock price surged 20% in after-hours trading on Monday.

Deal Details: $6.5 Billion Locked for 15 Years, Starting at 222 MW, Expandable to 650 MW

According to Fermi's released statement, the lease was signed between Fermi's subsidiary, Fermi Campus 1 LLC, and TensorWave's subsidiary, TensorWave TEX1, LLC. The initial phase covers a facility supported by a total power capacity of 222 megawatts and is expected to generate approximately $6.5 billion in total contract revenue over the initial 15-year term. The lease includes expansion rights for two additional data centers, which, if fully exercised, will extend the cooperation to over 650 megawatts in three phases.

The facility is expected to begin phased delivery in the second half of 2027. Once fully delivered, it is expected to support tens of thousands of next-generation AMD Instinct GPUs for large-scale AI training and inference. The lease also includes two five-year renewal options, potentially extending the lease period to 25 years.

Fermi Chairman Marius Haas stated: "A lease of such scale and duration is a tremendous vote of confidence in Fermi. By delivering this first binding agreement, we have achieved the most important goal we promised the market in May."

TensorWave: Rising AI Cloud Star in the AMD Ecosystem

The lessee, TensorWave, is a Las Vegas-based AI cloud provider and operates one of the world's largest all-AMD GPU clouds. In June 2026, the company completed a $350 million Series B financing jointly led by AMD Ventures and Magnetar Capital, bringing its valuation to $1.55 billion.

Currently, TensorWave operates three data centers located in Pennsylvania, Arizona, and Florida, has secured over 2 gigawatts of long-term data center capacity, and has signed leases for a total of 500 megawatts. CEO Darrick Horton stated: "Our clients collectively need hundreds of thousands of AMD Instinct GPUs and require a reliable schedule. Fermi has integrated power, land, and permits, allowing for delivery at such a pace."

Power and Permits as a Moat: 17 GW Planned, 6 GW Already Permitted

This deal highlights the core logic of the current AI infrastructure market—"who controls the power controls the world." As hyperscalers and cloud service providers compete for large-scale, reliable power supply, many projects are stalled due to permit delays or incomplete financing. Fermi maintains an advantage in the competition with its pre-locked land, permits, and power resources.

The key context of this deal is that power acquisition has become the core constraint for AI infrastructure. Hyperscale cloud service providers and cloud vendors are fighting over large-scale, reliable power supply, and many projects have stalled due to permit delays or insufficient financing.

Fermi's Project Matador is located in the Texas Panhandle and covers an area more than half the size of Manhattan, designed to supply power behind the meter via a private grid, with planned capacity gradually rising to around 17 gigawatts. Currently, about 6 gigawatts have been permitted, with over $1.5 billion already invested in construction, and the first power target set for 2026.

Compared to similar deals, Fermi’s scale is particularly notable. Riot Platforms, a bitcoin miner that pivoted to AI hosting, previously signed a 20-year lease for 191 megawatts of AI data center capacity, about 14% smaller than Fermi’s initial phase.

AMD’s Strategic Pivot: Another Move to Challenge Nvidia

This deal also strengthens AMD's competitive position in AI infrastructure. TensorWave’s commitment to deploying tens of thousands of AMD Instinct GPUs at the facility demonstrates AMD’s effort to challenge Nvidia’s dominance in the AI accelerator field by supporting the AI cloud ecosystem. Notably, Fermi expects some obligations under the lease to be guaranteed by a global AI leading enterprise, whose identity has not been disclosed.

Fermi stated that the Texas Tech University System, which cooperates with Project Matador, supports the transaction and will work towards ensuring smooth delivery. The company is also in discussions with other hyperscale, emerging cloud, and enterprise computing counterparties regarding the remaining capacity at Project Matador.