Fermi Inc. Signs $6.5 Billion Lease With TensorWave

Fermi Inc. signed a $6.5 billion, 15-year lease with AI cloud provider TensorWave for a portion of Project Matador, an energy and computing campus in Carson County, Texas. The agreement provides TensorWave with a data center supplied by 222 megawatts of power, with options to expand to over 650 megawatts. Delivery of the facility is expected to begin in stages during the second half of 2027.

The deal follows a period of instability for Fermi, which included the collapse of a previous tenant arrangement and a leadership dispute that resulted in the removal of co-founder Toby Neugebauer as CEO. The company has also faced a shareholder lawsuit alleging investor deception.

Project Matador, co-founded by Rick Perry, aims to develop up to 17 gigawatts of power using nuclear, natural gas, and solar energy. The development has encountered local opposition in the Texas Panhandle over air pollution from the planned natural gas complex and high water consumption. While the city of Amarillo approved selling water to Fermi, it has also considered a moratorium on large-scale data centers, and Governor Greg Abbott has ordered state regulators to audit data centers seeking grid connections.