- The initial TensorWave lease covers 222MW of total facility power, with phased delivery beginning in the second half of 2027. [1] - Expansion rights for two additional data centers could lift the partnership above 650MW. [1] - Fermi expects approximately $6.5 billion in contracted revenue over the initial 15-year term for phase one. [1] - The completed facility is designed to support tens of thousands of AMD Instinct GPUs for AI training and inference. [1] - Project Matador is a behind-the-meter campus in Carson County, Texas, with approximately 6GW permitted and first power targeted for 2026. [1][3]
Fermi America has signed a binding turnkey data center lease with TensorWave for its Project Matador campus in Carson County, Texas, establishing the project’s first announced customer commitment. The initial phase covers 222MW of total facility power, with delivery scheduled to begin in the second half of 2027. [1][2]
The agreement includes expansion rights for two additional data centers. If exercised, the partnership would exceed 650MW across three phases. Fermi said the first phase is expected to generate approximately $6.5 billion in contracted revenue over an initial 15-year term, excluding renewal options. [1]
TensorWave will use the completed facility for large-scale AI training and inference on AMD Instinct GPUs. Fermi said the site is being designed to support tens of thousands of next-generation AMD accelerators. [1]
The Deal Terms #
Fermi will develop, construct and deliver the facility under a turnkey lease structure, while TensorWave will take occupancy in phases. The initial lease term begins after the final delivery phase and includes two five-year renewal options. [1]
The 650MW figure is not committed day-one capacity. It represents the potential total of the initial 222MW facility plus two expansion facilities if TensorWave exercises its rights. The lease remains subject to customary project guaranties and financing conditions. [1]
Power and Site #
Project Matador is a planned private power and AI campus in the Texas Panhandle. Fermi’s current materials describe a 17GW campus, with approximately 6GW already permitted, more than $1.5 billion invested in the buildout and first power targeted for 2026. [1]
A Texas Commission on Environmental Quality technical review identifies the project as a greenfield natural gas-fired power plant in Carson County serving an on-site hyperscale data center campus. The review lists combined-cycle and simple-cycle turbines, cooling towers and related backup-generation equipment. [3]
Fermi describes the campus as a behind-the-meter development supplied by on-site generation and connected infrastructure rather than relying solely on a conventional utility interconnection. [1][3]
TensorWave’s AMD Cloud #
TensorWave operates an AMD Instinct-focused AI cloud and is expanding infrastructure for training and inference workloads. Its agreement with Fermi makes it the first announced customer for Project Matador. [1][2]
The transaction gives TensorWave a phased path to hundreds of megawatts of facility capacity, while tying the deployment schedule to Fermi’s construction, financing and power-delivery milestones. The first delivery is scheduled for the second half of 2027. [1]
Permitting and Timeline #
Fermi announced the lease on August 10, 2026, with Data Center Dynamics reporting the agreement on August 11. The company said construction at Project Matador is well underway and that first power remains targeted for 2026. TensorWave facility delivery is scheduled to begin in the second half of 2027. [1][2]
The TCEQ review confirms that Project Matador’s power-generation component is being developed for exclusive on-site use by the associated data center campus. [3]
Companies mentioned #
Further sources #
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