Fermi Says Customer Commits $200 Million to Advance Texas Data-Center Power Project
The company says an unnamed hyperscale customer has agreed to fund work on 600 megawatts at Project Matador, but a long-term lease has not been finalized.
Fermi says an unnamed investment-grade hyperscale customer has committed $200 million toward development of an initial 600 megawatts of power capacity at its Project Matador site in Texas, with the capacity targeted to begin in 2027.
The agreements include a $200 million prepayment arrangement and a separate $15 million early construction and site development agreement. The company says the money is intended to advance work before a long-term lease is completed.
Fermi and the customer are also finalizing a proposed $90 million agreement for structural steel and building materials. That agreement and the definitive long-term lease were not signed at the time of the announcement. The customer was not identified.
Separately, Fermi said it and TensorWave had terminated the data-center lease and services agreement signed in August. An AMD credit-support agreement associated with that arrangement was also terminated.
The updates came with Fermi's third-quarter results. It reported a $141.6 million net loss, or 22 cents per basic and diluted share, for the quarter ended September 30. The company remains in its development phase and has not begun generating revenue.
Fermi reported $315.5 million in cash and restricted cash and $958.4 million in net outstanding debt at quarter-end. It said approximately $1.67 billion had been invested in property, plant and equipment on a net basis. The customer agreements mark a financing and development step, not an operating data center or a completed long-term lease.