13th Oct 2026 14:51
(Alliance News) - Fermi Inc on Tuesday disclosed an agreement with Advanced Micro Devices Inc and a new partnership.
The Texas-based, data centre-focused real estate investment trust has entered a credit support agreement with AMD, the Santa Clara, California-based chipmaker, which will support a lease for phase one of Fermi's flagship Matador project.
The AMD agreement covers 222 megawatts of gross power capacity, as per the lease to Fermi's first customer Tensorwave TEX1 LLC, which was announced in August and is expected to lead to roughly USD6.5 billion in total revenue over an initial 15-year term.
Fermi has also signed a partnership agreement with AMD and a framework to expand capacity to 650 MW in future.
It sees this tie-up as "a key milestone toward securing project financing".
Fermi shares rose 8.0% to USD3.51 each on Tuesday afternoon in London, for a market capitalisation of about USD2.08 billion. The stock has slumped 89% over the past year.
AMD shares were down 2.9% to USD576.89 each early Tuesday in New York, for a USD970.08 billion market cap, having more than doubled over the past year.
Chief Executive Lee McIntire commented: "We are thrilled to partner with AMD as we advance development at Project Matador. Our strategic partnership establishes a framework for phases two and three. We have the land, the permits, the water, the power equipment, and the fiber network that give us distinct performance advantages."
AMD's Mathew Hein, senior vice president and chief strategy officer of corporate development, added: "The pace of AI innovation is driving unprecedented demand for compute and the large-scale data center infrastructure needed to support it. Our collaboration with Fermi is an important step in expanding the infrastructure capacity needed to bring next-generation AI solutions to market."
Last month, Fermi said it had selected CBRE Group Inc to operate and maintain "building one" of the Matador data centre development, through a five-year contract. It also recently received the first shipment of SGT6-5000F turbines from Siemens Energy AG.
The company has not been without its troubles, however. Fermi has sparred publicly with ex-chief executive Neugebaeur since terminating his contract in May, citing "conduct in violation of the terms of such agreement and of company policies".
Neugebaeur co-founded the company with Rick Perry, a former Texas state governor and US energy secretary from 2017 to 2019. Neugebaeur is also the target of a lawsuit by the bankruptcy trustee for the conservative financial startup GloriFi, alleging securities fraud prior to the bank's liquidation. GloriFi's backers included Palantir Technologies Inc CEO Peter Thiel.
By Holly Munks, Alliance News reporter
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