Fermi Inc. (NASDAQ: FRMI) has signed a binding lease agreement with TensorWave TEX1, LLC, a subsidiary of AI cloud provider TensorWave Inc., for space at its Project Matador campus in Carson County, Texas, according to a company statement.

The lease, executed between Fermi's subsidiary Fermi Campus 1 LLC and TensorWave, covers a facility supported by 222 megawatts of total facility power and is expected to generate approximately $6.5 billion in contracted revenue over an initial 15-year term. Delivery is scheduled to begin in the second half of 2027 in phases. The agreement includes two five-year renewal options.

The lease also carries expansion rights for two additional data centers that, if exercised, would bring the total partnership capacity to more than 650 MW. Fermi said it expects certain lease obligations to be guaranteed by an unnamed entity it described as one of the global leaders in AI. The lease is subject to customary conditions, including receipt of required guarantees and financing.

Once fully delivered, the facility is expected to support tens of thousands of next-generation AMD Instinct GPUs for AI training and inference workloads.

Project Matador is currently under construction, with approximately 6 gigawatts of a planned 17 GW permitted. Fermi said it has invested more than $1.5 billion in the buildout to date, with first power targeted for 2026.

Marius Haas, Chairman of the Board of Fermi Inc., said the agreement fulfills the company's primary objective communicated to the market in May. Fermi said it continues to advance discussions with additional hyperscale, neo-cloud, and enterprise compute customers for capacity at the site.

The Texas Tech University System, which has a partnership with Fermi related to the project, said it supports the transaction and intends to work toward a successful closing.