# Fermi Signs $6.5 Billion Data Center Lease With TensorWave

- URL: https://stocks.freetheai.org/news/fermi-signs-6-5-billion-data-center-lease-with-tensorwave-e738e3
- Published: 2026-10-14T12:03:01Z
- Category: company_news; sentiment: bullish; impact: high
- Symbols: [NASDAQ:FRMI](https://stocks.freetheai.org/symbols/NASDAQ-FRMI)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Fermi Inc. (FRMI) has entered into a binding 15-year phase one lease agreement with TensorWave worth $6.5 billion over its initial term. Under the deal, Fermi will provide 222 megawatts of total power capacity at its Project Matador facility, including 156 megawatts of critical IT capacity. Following the announcement, Fermi shares rose 14.46% to $3.72.

The contract generates $6.5 billion in revenue over 15 years, featuring 2.5% annual escalators and options for two five-year renewals. Fermi expects net operating income margins of 75% to 80%, with natural gas and power costs passed through to the tenant. AMD will back the deal with credit support once construction finishes and rent starts.

Occupancy is scheduled to begin in phases in the fourth quarter of 2027. Investors will watch Project Matador construction milestones, power delivery, and the start of rent payments when credit protections take effect.

## Key points

- Fermi Inc. signed a binding 15-year phase one lease with TensorWave valued at $6.5 billion in revenue.
- The agreement covers 222 megawatts of total power capacity at Project Matador, with occupancy starting in Q4 2027.
- The lease includes 2.5% annual rate increases, two 5-year renewal options, and pass-through power charges.
- AMD will provide credit support for the lease after construction finishes and rent payments begin.
- Fermi projects net operating income margins of 75% to 80% on the project, and its stock gained 14.46%.

## Questions and answers

### What is the value of Fermi's lease deal with TensorWave?

The binding 15-year phase one lease is worth $6.5 billion in contracted revenue over its initial term.

### When will TensorWave begin occupancy at Project Matador?

Tenant occupancy is set to begin in phases starting in the fourth quarter of 2027.

### How does AMD support Fermi's lease agreement?

AMD provides credit support for the lease starting after construction is completed and rent payments commence.