Data center company Fermi America has signed a binding lease agreement with TensorWave for up to 650MW of data center capacity at its Project Matador site in Texas.

According to Fermi, the deal supports an initial 222MW of capacity beginning in the second half of 2027, but includes expansion rights for two additional data centers that would total 650MW.

Once complete, the facility will support the deployment of “tens of thousands” of next-generation AMD Instinct GPUs for training and inferencing workloads. The lease is expected to generate approximately $6.5 billion in total contracted revenue for the 15-year term, Fermi added.

AI cloud company TensorWave exclusively offers access to AMD GPUs via its platform. In May 2025, the company raised $100 million in a Series A funding round.

"A lease of this size and this term is a tremendous vote of confidence in Fermi," said Marius Haas, chairman of the Board of Directors of Fermi America. "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 was founded in January 2025 by former Texas governor and energy secretary Rick Perry and Toby Neugebauer. The company’s Project Matador is a massive 17GW data center and energy campus near Amarillo in Texas on land owned by the Texas Tech University system. The campus was initially announced with planned 11GW of capacity, but Fermi increased the figure to 17GW in March 2026.

If realized, the campus will span 18 million sq ft (1.67 million sqm) and would utilize a combination of on-site energy sources, including natural gas, solar, wind energy, and nuclear energy. Last year, Fermi said that it had signed a non-binding letter of intent with an unnamed “investment grade-rated tenant” to be the first customer at the campus - but that firm later withdrew from the deal, a matter that led to a class action lawsuit.

Currently, Fermi has no data centers in operation and little experience in the sector within its executive team. Despite this, the company raised $682m in an October IPO that valued the business at $15 billion.

This week, Fermi said Project Matador is “well underway,” with approximately 6GW of the planned 17GW already permitted, and more than $1.5bn invested in the buildout to date, with first power targeted for 2026.

In April, Neugebauer, Fermi’s CEO and co-founder, and Miles Everson, the company’s CFO, departed the company. Both remain on the company’s board.