Fermi America Secures 600 MW Deal for Texas AI Campus

Fermi America announced a 600 megawatt power agreement with an investment-grade hyperscaler for its Project Matador campus in Texas. The company is developing an 8,400-acre energy and AI campus with a long-term target of delivering 17 gigawatts of power. Fermi expects a $200 million prepayment from the hyperscaler by November 13, 2026.

To attract tenants in a restricted Texas power market, the company is utilizing a Powered Land+ model. Fermi has already invested more than $1.6 billion in infrastructure, including pipelines and gas turbines, and secured a 6 GW clean air permit from the Texas Commission on Environmental Quality. A partnership with Hillcore further adds 2.6 GW of power capacity through a build-own-operate-transfer framework.

Despite these developments, the company reported zero revenue and a third-quarter loss of $0.22 per share. Executives noted that the scarcity of power is driving hyperscalers to secure available capacity, shifting the company's funding model from corporate cash toward customer prepayments and project-level debt and equity.