At a glance
- The developer, which is building a 17GW campus near Amarillo, Texas, said it is continuing to work with the AMD-based cloud provider on closing.
- TensorWave has contracted for 222MW beginning in the second half of 2027, with expansion rights on two additional data centers that would total 650MW, under a lease Fermi announced in August.
- For allocators, a signed lease that has not closed is not contracted revenue.
Fermi's 222MW lease with TensorWave missed its Oct. 31 closing deadline, and neither party has exercised termination rights. The developer, which is building a 17GW campus near Amarillo, Texas, said it is continuing to work with the AMD-based cloud provider on closing. TensorWave is the only customer Fermi has disclosed publicly.
TensorWave has contracted for 222MW beginning in the second half of 2027, with expansion rights on two additional data centers that would total 650MW, under a lease Fermi announced in August. In October, Fermi signed a credit support agreement with AMD to help fund the 222MW build. "Both Fermi and TensorWave remain committed to this lease, and we are continuing to work through the remaining conditions prior to close," chief executive Lee McIntire said.
For allocators, a signed lease that has not closed is not contracted revenue. The 222MW was not due before the second half of 2027, but the remaining conditions determine whether the offtake is firm. Whether AMD's credit support is tied to those same conditions is the open due-diligence question.
Fermi went public in January 2025 at a $15 billion valuation without having brought any IT capacity live. Its plan is a 17GW data center and energy campus near Amarillo, Texas, on land owned by the Texas Tech University system.
Fermi has already had one tenant pull out of a data center lease at the site. In December, the tenant walked away from a $150 million lease and the stock fell. Fermi denied the tenant was Amazon after Business Insider reported that Neugebauer, then chief executive and still the company's largest shareholder, named Amazon on a call. Business Insider said the agreement would have paid Fermi more than $20 billion over 20 years. Neugebauer and then-CFO Miles Everson left in April, and Perry was not reelected to Fermi's board last month, The Texas Tribune reported.
McIntire said Fermi expects to provide more information on the discussions during its earnings call next week, "or sooner if appropriate."
Both Fermi and TensorWave remain committed to this lease, and we are continuing to work through the remaining conditions prior to closeLee McIntire, chief executive of Fermi
Reported by the Data centers & fiber desk from Data Center Dynamics, The Texas Tribune and Business Insider. Published . Corrections