Fermi’s 222 MW TensorWave Lease Misses Closing Deadline

By Amara Osei

A 222 MW data center lease between US developer Fermi and AMD-based neocloud TensorWave missed its October 31 closing deadline, and Fermi has no other public customers. Neither side has exercised termination rights, and Fermi said it continues working with TensorWave on the remaining closing conditions.

What remains open in the 222 MW lease?

Fermi CEO Lee McIntire said: “Both Fermi and TensorWave remain committed to this lease, and we are continuing to work through the remaining conditions prior to close. We expect to provide more information on the discussions during our earnings call next week, or sooner if appropriate.”

The agreement, announced in August, would have TensorWave lease 222 MW of capacity beginning in the second half of 2027. It also includes expansion rights for two additional data centers that would total 650 MW. In October, Fermi signed a credit support agreement with AMD to help fund development of the initial 222 MW project.

Takeaway: The lease remains unclosed, and the 222 MW delivery still depends on outstanding closing conditions.

How large is Project Matador?

Former Texas governor and energy secretary Rick Perry and Toby Neugebauer founded Fermi in January 2025. In October 2025, the company went public at a $15 billion valuation despite not having brought any IT live. Fermi aims to develop a 17 GW data center and energy campus near Amarillo, Texas, on land owned by the Texas Tech University system.

Fermi initially announced Project Matador with 11 GW of planned capacity and increased that figure to 17 GW in March 2026. The capacity figures remain theoretical.

In December, a proposed tenant withdrew from a $150 million data center lease on the Matador site, and Fermi’s stock crashed. Fermi denied that Amazon was the tenant. Business Insider reported, citing Neugebauer, that he told the publication during a phone call that Amazon was the tenant.

According to that account, the withdrawn agreement carried an initial value of $150 million and would pay Fermi more than $20 billion over 20 years.

Takeaway: The 17 GW figure remains a theoretical target after a proposed tenant withdrew from a $150 million lease.

What followed the April departures?

Neugebauer and Miles Everson, Fermi’s then-chief financial officer, departed in April. Neugebauer remains the company’s largest shareholder and has repeatedly tried to regain control; Fermi and the former CEO traded insults through press releases.

Fermi canceled a shareholder meeting Neugebauer had called and said the former CEO was trying to force a sale at a depressed valuation. Both Neugebauer and Fermi have filed temporary restraining orders against each other.

Rick Perry did not retain his board seat last month, according to The Texas Tribune. Neugebauer repeatedly donated to Perry while Perry served as governor. Perry’s son Griffin Perry is Fermi’s second-largest shareholder through Caddis Capital.

In May, Griffin Perry backed Fermi against Neugebauer and said the former CEO was trying to “seize control of the company in pursuit of a hasty and ill-advised sale.” Neugebauer voted against Rick Perry’s board reelection.

Takeaway: Board turnover, contested control and two restraining orders make company governance a central risk for Fermi.

What does the missed deadline mean for the stock?

At its October 2025 IPO, Fermi carried a $15 billion valuation despite having no IT live. Its shares have since fallen more than 92%.

The missed TensorWave deadline leaves the 222 MW agreement unclosed, although neither side has ended the lease. Fermi’s disclosed position now combines:

• 17 GW of theoretical Project Matador capacity;
• a 222 MW customer lease that remains unclosed;
• a $150 million lease that lost its proposed tenant in December; and
• a control dispute involving two temporary restraining orders.

Fermi has disclosed no other public customer. Next week’s earnings call provides the next scheduled update on the discussions.

Takeaway: For now, the 222 MW lease remains open, and the shares remain more than 92% below their IPO level.