Fermi Secures $200 Million Prepayment from Investment-Grade Hyperscaler for 600 MW at Project Matador, Reports Q3 2026 Results

Fermi Inc. has signed agreements with an undisclosed investment-grade hyperscale customer to advance 600 megawatts of power capacity at its Project Matador campus in the Texas Panhandle, marking a significant commercial milestone for the pre-revenue developer as it races to convert its power-ready sites into leased data center capacity.

The agreements, announced alongside the company's third-quarter 2026 financial results, include a $200 million prepayment that provides substantial upfront customer funding for the proposed 600 MW development, as well as a $15 million early construction and site development agreement establishing a framework for advancing site preparation to maintain the customer's desired schedule. Fermi and the customer are also finalizing a $90 million structural steel and building materials purchase agreement that would allow the hyperscaler to leverage critical long-lead materials Fermi secured in advance, accelerating its planned construction of multiple data center facilities on the campus.

The customer is making financial and development commitments ahead of finalizing a lease, reflecting the urgency among hyperscalers to secure permitted power within their targeted delivery timelines. "Hyperscalers want sites that are ready with permitted power, and Fermi's Project Matador is one of few that can meet that demand today," said Lee McIntire, Fermi Chief Executive Officer. "Our headstart in speed to power is a key reason an investment-grade hyperscaler has signed up for 600 megawatts and committed more than $200 million up front to accelerate construction." McIntire added that if Fermi successfully converts its pipeline of prospective customers into leases, it would completely fill the project's 2.2 gigawatts of current capacity, positioning the company to evolve from pre-revenue, pre-lease status into its next phase of growth.

The agreements illustrate Fermi's strategy of investing early in infrastructure readiness to attract customer capital earlier in the project lifecycle and translate its power and infrastructure advantages into long-term revenue opportunities with little or no dilution. The customer's identity remains confidential, and the parties continue working toward a definitive long-term lease. Separately, Fermi and TensorWave have terminated the Data Center Lease and Services Agreement signed in August 2026, along with the associated AMD credit support agreement.

Fermi also reaffirmed its partnership with the Texas Tech University System, with Chancellor Brandon Creighton issuing a statement earlier this week emphasizing that Texas Tech "remains firmly committed to the success of Project Matador." The two parties continue to work through land lease conditions that precede vertical construction.

On the financial front, Fermi reported $315.5 million in total cash and restricted cash on hand as of September 30, 2026, and $133.4 million of capital invested in property, plant and equipment during the quarter, bringing the nine-month total to $759.5 million and the net balance to approximately $1.67 billion. The company carried $958.4 million of outstanding debt, net, reflecting a $463.0 million net increase in borrowings under convertible senior notes and equipment financing facilities. Fermi posted a net loss of $141.6 million, or $0.22 per basic and diluted share, driven largely by $142.2 million in general and administrative expenses that included $65.8 million of non-cash stock compensation and $21.5 million of financial advisory fees settled through common stock issuance.

Project Matador is designed to address the single biggest constraint in AI infrastructure: access to large-scale, reliable power on a timeline that meets customer demand, delivered behind the meter and on a private grid built and operated on site. The site is secured or under long-term lease with nearly $1.7 billion invested in buildout to date, and subject to binding customer agreements, the project is expected to ramp to approximately 17 GW with capital deployment matched to commercial commitments. The campus is expected to integrate one of the nation's largest combined-cycle natural gas projects, one of the largest new nuclear power complexes in America, utility grid power, solar power and battery energy storage.

The hyperscaler commitments signal growing confidence in Fermi's speed-to-power model at a time when AI-driven demand for data center capacity is outpacing the availability of permitted, interconnected power across major U.S. markets. By securing customer capital before executing a lease, Fermi aims to reduce dilution risk while accelerating construction, a structure that could become a template for other power-first developers seeking to bridge the gap between site readiness and tenant commitment.