Fermi Inc. (NASDAQ:FRMI)(LSE:FRMI), which operates as Fermi America, announced on November 12, 2026 that an undisclosed investment-grade hyperscale customer has entered into a series of agreements to support the development of 600 megawatts of power capacity at Project Matador.

Prepayment Signed Ahead of Final Lease

The announcement coincided with the company's release of its third quarter 2026 financial results. The centerpiece of the arrangement is a USD 200 million prepayment agreement that provides substantial upfront customer funding in connection with the proposed 600 MW development.

According to Fermi, the customer is committing financial and development resources before a lease has been executed, a step the company attributes to the importance of locking in access to power within the customer's targeted delivery timeline. A second agreement, valued at USD 15 million, covers early construction and site development.

It establishes a framework for moving site preparation and construction activities forward as quickly as possible so that the customer's desired schedule can be maintained.

In addition, the two parties are working to finalize a USD 90 million structural steel and building materials purchase agreement. Under that contemplated deal, the customer would leverage long-lead materials that Fermi secured in advance, which the company says would accelerate the customer's planned construction of multiple data center facilities at Project Matador. Fermi stated that it and the customer continue to work toward a definitive long-term lease as well as finalization of the steel purchase agreement.

The customer's name has not been disclosed.

Fermi Chief Executive Officer Lee McIntire characterized the agreements as confirmation of the company's strategy. "Hyperscalers want sites that are ready with permitted power, and Fermi's Project Matador is one of few that can meet that demand today," McIntire said. "Our headstart in speed to power is a key reason an investment-grade hyperscaler has signed up for 600 megawatts and committed more than USD 200 million up front to accelerate construction at Project Matador with an additional USD 90 million contemplated."

McIntire said the deals fit within Fermi's approach of investing early in infrastructure readiness to draw customer capital into the project earlier in its lifecycle, converting power and infrastructure advantages into long-term revenue opportunities "with little or no dilution."

He described the agreements as what the company believes is "just the start" of converting its customer pipeline, adding that if Fermi successfully converts prospective customers into leases, it would completely fill the company's current 2.2 gigawatts of capacity.

That outcome, he said, would position the company to move from pre-revenue and pre-lease status into its next phase of growth.

TensorWave Lease Agreement Ends

In a separate disclosure included in the announcement, Fermi reported that it and TensorWave have terminated the Data Center Lease and Services Agreement the two companies signed in August 2026. Fermi also stated that the AMD credit support agreement associated with TensorWave has been terminated.

Texas Tech System Reaffirms Role in Project Matador

Fermi said it and the Texas Tech University System continue to work together to advance Project Matador, including the conditions under the land lease that must be met before vertical construction can proceed. Earlier in the week of the announcement, Texas Tech University System Chancellor Brandon Creighton issued a statement reaffirming the partnership.

"Texas Tech is proud of our partnership with Fermi and remains firmly committed to the success of Project Matador," Creighton said.