Fermi shares jump on first binding Matador lease agreement
Fermi Inc on Tuesday announced the execution of its first binding customer lease agreement at its Project Matador campus in Texas.
In response, Fermi shares were up 11% at USD6.90 each on Tuesday at around noon in London.
The Texas-based, data centre-focused real estate investment trust said the deal is between subsidiary Fermi Campus 1 LLC and TensorWave TEX1 LLC, a subsidiary of AI cloud provider TensorWave Inc, and covers a facility supported by 222 megawatts of total facility power once the final delivery phase commences.
"Once fully delivered, the facility is being designed to support tens of thousands of next-generation AMD Instinct GPUs for large-scale AI training and inference," Fermi added.
Fermi, which operates as Fermi America, expects the lease to deliver approximately USD6.5 billion in total contracted revenue over its initial 15-year term. It also noted that the agreement carries expansion rights for two additional data centres, and that once these are exercised, the partnership will cover over 650 MW in total.
Fermi added that Matador's construction "is well underway, with approximately 6 gigawatts (GW) of the planned 17 GW already permitted, more than USD1.5 billion invested in the buildout to date, and first power targeted for 2026.
"As a result, Fermi is positioned to deliver AI data center capacity in a market where many projects are still raising the capital required to build or being blocked by permitting issues," it said.
Chair Marius Haas commented: "A lease of this size and this term is a tremendous vote of confidence in Fermi. In delivering this first binding agreement, we've now fulfilled the most important objective we shared with the market in May.
"The committed partner ecosystem of developers, guarantors, and financing providers are all industry-leading companies, and TensorWave is exactly the kind of anchor customer our project was designed for. I am incredibly proud of our team for executing the site buildout to date, and for delivering this agreement and advancing others that we expect to announce soon."
Fermi said it continues to advance discussions with additional hyperscale, neo-cloud and enterprise compute counterparties for Matador's capacity, and with development, construction, and financing partners for the campus. It said it expects to release further details as deals are finalised.
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