Fermi secures AI tenant for Texas data center, stock surges over 19%

Fermi Inc. just landed the kind of deal that turns a turnaround story into a growth story. The Texas-based power and data center developer announced a binding 15-year lease with TensorWave for a 222 MW facility at its Project Matador campus in Carson County, Texas, a deal expected to generate roughly $6.5 billion in contracted revenue. The stock responded accordingly. Fermi shares jumped about 19.4% in post-market trading, with some after-hours prints showing gains as high as 35%. For a company that had been nursing wounds from a collapsed agreement with Amazon, the timing could hardly have been better. What the deal actually looks like TensorWave, which builds AI cloud infrastructure around AMD Instinct GPUs, will be the anchor tenant at Project Matador’s first phase. The facility is designed to house tens of thousands of AMD’s high-performance GPUs, creating what amounts to a purpose-built AI compute factory in the Texas Panhandle. Phase 1 delivery is targeted for the second half of 2027. But the agreement also includes expansion rights that could push total capacity past 650 MW across multiple phases, meaning TensorWave could grow substantially within the Matador footprint over ...