Fermi lands 600MW hyperscaler power deal as TensorWave lease is cancelled

Nov 13, 2026
An unnamed investment-grade hyperscaler put more than $200 million up front at Project Matador in Texas, but no lease is signed yet.

Fermi America has agreed with an unnamed investment-grade hyperscaler to develop 600 megawatts of power at its planned Project Matador data center campus in Texas, with the customer providing more than $200 million up front, DCD reports. The hyperscaler has not signed a lease yet, but Fermi says it is making financial and development commitments ahead of one. It is also providing $15 million through an early construction agreement, and a further $90 million materials purchase is being finalised.

At the same time, Fermi confirmed that its data center lease with AI cloud company TensorWave, for up to 650 megawatts and backed by AMD credit support, has been terminated, leaving the campus without a signed tenant for now. Fermi was founded in 2025 by former Texas governor Rick Perry and Toby Neugebauer and went public later that year without any capacity live. Chief executive Lee McIntire said turning its pipeline into leases "would completely fill our 2.2GW of current capacity."

We hope you enjoyed this article

Consider subscribing to one of our newsletters like Silicon Brief or Daily AI Brief.

Also, consider following us on social media:

AI Chips & Datacenters AI Brief AI Brief (X)
Free newsletter

Silicon Brief

Weekly coverage of AI hardware developments including chips, GPUs, cloud platforms, and data center technology.

Guide
AI interconnect and networking startups

AI interconnect and networking startups

29 private startups developing the chips, optical switches and memory fabrics that move data through AI infrastructure.

Market report

2025 Generative AI in Professional Services Report

Thomson Reuters

This report by Thomson Reuters explores the integration and impact of generative AI technologies, such as ChatGPT and Microsoft Copilot, within the professional services sector. It highlights the growing adoption of GenAI tools across industries like legal, tax, accounting, and government, and discusses the challenges and opportunities these technologies present. The report also examines professionals' perceptions of GenAI and the need for strategic integration to maximize its value.

Read more

You may also like

Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.