Fermi Inc. has entered into a binding 15-year lease agreement with TensorWave for the development of a data center project located at the Project Matador site. The lease, detailed in an October 14, 2026, fact sheet, outlines a total contracted revenue of $6.5 billion over the initial term.
The agreement covers a total power capacity of 222 megawatts (MW), with 156 MW designated as critical IT capacity. TensorWave, a cloud provider built exclusively on AMD Instinct GPUs, will take occupancy in phases beginning in the fourth quarter of 2027, with completion expected in early 2028.
Under the terms of the lease, Fermi is responsible for the development, construction, and delivery of the facility. The lease includes two 5-year renewal options and annual escalators of 2.5%. The structure is a turnkey lease, meaning TensorWave pays for the facility upon occupancy.
The project is supported by a credit support agreement with Advanced Micro Devices (AMD). The company notes that the estimated project-level net operating income (NOI) margin for the phase one lease is approximately 75% to 80%. Unit costs for the project include a power capital expenditure of $3 million to $4 million per MW of total power capacity and a turnkey data center capital expenditure of $10 million to $12 million per MW of critical IT capacity.
TensorWave has secured $350 million in Series B funding, with investors including AMD, Magnetar, Maverick Silicon, and Nexus Venture Partners. The company has secured capacity across its platform exceeding 2 GW.
