Fermi Inc. Secures $6.5 Billion Turnkey Lease Agreement with TensorWave

Key numbers

Deal value	$6.5B
Share of market cap	272.8%

Key highlights

• Binding 15-year initial term lease with two five-year renewal options
• Total contracted revenue of $6.5 billion over the phase one initial period
• Includes 222 MW of total power capacity and 156 MW of critical IT capacity
• Phased delivery scheduled to begin in Q4 2027 and complete by early 2028
• Backed by credit support from AMD (S&P: A/Stable) to facilitate project financing

What Is the Contract?

The agreement is a binding 15-year phase one turnkey lease at Fermi’s Project Matador site. Fermi Inc. is responsible for developing, building, and delivering 222 MW of total power capacity, which includes 156 MW of critical IT capacity. Phased occupancy by TensorWave is scheduled to commence in the fourth quarter of 2027 and conclude in early 2028. The financial structure includes 2.5% annual rent escalators and two five-year renewal options. Project costs are estimated at $3 million to $4 million per MW for power infrastructure and $10 million to $12 million per MW for turnkey data center capacity.

Client Profile

TensorWave is an emerging AI cloud infrastructure provider that builds its platform exclusively on AMD Instinct GPUs. The company operates one of the world's largest all-AMD deployments and has secured over 2 GW of capacity across its broader platform. TensorWave recently completed a $350 million Series B funding round with participation from institutional investors including Magnetar, Maverick Silicon, and Nexus Venture Partners. Notably, the lease is bolstered by a credit support agreement from AMD, which remains in effect until TensorWave or a guarantor achieves an investment-grade rating for 12 consecutive months.

Business Impact

• Adds $6.5 billion in long-term contracted revenue to the company pipeline
• Targeting project-level Net Operating Income (NOI) margins of 75% to 80%
• Pass-through structure for natural gas and variable power charges reduces commodity risk
• Investment-grade credit support from AMD (A/stable S&P) significantly aids project-level financing
• Solidifies Project Matador as a primary hub for high-density AI compute infrastructure

Business Overview

Fermi Inc. operates as a specialized Real Estate Investment Trust focused on the integration of large-scale power generation with data center infrastructure. The company’s flagship asset, Project Matador, integrates natural gas turbine fleets with high-density compute facilities to ensure power availability. To support this ecosystem, Fermi recently established strategic partnerships with NAES Corporation for turbine operations and CBRE for data center management. The company is currently scaling its power complex through a framework agreement with Hillcore Energy Capital, targeting a total capacity of up to 4.8 GW within 30 months.

Fermi Inc. · financial snapshot

Share price	$3.72
Market cap	$2.4B
1-month price change	-32.36%
Sector	Real EstateREIT - Specialty

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.