Fermi Inc. (Nasdaq: FRMI)(LSE: FRMI) has signed a credit support agreement with Advanced Micro Devices (Nasdaq: AMD) to back a lease for the first phase of Fermi's Project Matador, an energy and AI development in Carson County, Texas, with 222 megawatts of gross power capacity.

The companies also signed a separate agreement establishing a partnership framework for potential future expansion of up to 650 MW of gross power capacity across phases two and three of the project.

Fermi described the credit support agreement as a milestone toward securing project financing, according to a company press release.

Lee McIntire, Fermi's chief executive officer, said: "We have the land, the permits, the water, the power equipment, and the fiber network that give us distinct performance advantages. Our focus remains on building out our planned campus with top-tier partners like AMD."

Mathew Hein, senior vice president and chief strategy officer of corporate development at AMD, said the collaboration with Fermi is "an important step in expanding the infrastructure capacity needed to bring next-generation AI solutions to market."

Project Matador is located in the Texas Panhandle. Fermi states the site has seen more than $1.5 billion invested in buildout to date and is expected to ramp to approximately 17 gigawatts of capacity, subject to binding customer agreements, with capital deployment matched to commercial commitments.