Fermi Says TensorWave Data Center Lease Missed Oct. 31 Closing Deadline

Fermi Inc. said Tuesday its planned data center lease with TensorWave had not taken effect by the Oct. 31 closing deadline, leaving a 222-megawatt Texas project without an effective lease.

Fermi said the closing conditions were not fully satisfied. As of the company’s Nov. 3 update, neither party had exercised a termination right, and the companies continued working toward closing. “Both Fermi and TensorWave remain committed to this lease, and we are continuing to work through the remaining conditions prior to close,” Fermi CEO Lee McIntire said.

Fermi Campus 1 LLC and TensorWave TEX1 LLC entered the agreement Aug. 9 for a build-to-suit facility at Project Matador in Carson County, Texas. The center is planned to have 222 megawatts of total power, with delivery in phases. The facility is planned for phased delivery from late 2027 through the first quarter of 2028.

The lease has an initial 15-year term and is expected to generate about $6.5 billion in contracted revenue if it takes effect. Those are planned terms for an agreement that remains ineffective.

Closing requirements include work letters and guaranties, finalized operations schedules and a service-level agreement, board approvals, and project-level financing sufficient to fund construction. Fermi did not identify which conditions remained unmet or provide a new closing date.

The companies moved the closing deadline from Sept. 30 to Oct. 31 in an amendment announced Sept. 22. At that time, Fermi said it was negotiating a guaranty with an investment-grade counterparty. On Oct. 13, Fermi announced a credit-support agreement with AMD for the lease’s 222-megawatt first phase, describing it as a milestone toward securing project financing. Its Nov. 3 update did not say whether the agreement met the lease’s financing condition. Fermi has also outlined a staged funding plan for Project Matador.

Fermi’s third-quarter earnings call is scheduled for Nov. 12 at 9 a.m. ET (14:00 UTC). McIntire said the company expects to provide more information about the discussions during the call, or sooner if appropriate.