Fermi America Signs 600 MW Power Deal
Fermi America announced a 600 MW power capacity agreement with an undisclosed investment-grade hyperscaler, following a failed tenant deal in December 2025.
Updated on Nov. 13, 2026 in Data Centers
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Fermi America announced a 600 MW power capacity agreement on November 12, 2026, with an undisclosed counterparty. The deal includes a $200 million upfront prepayment and commitments tied to early construction and purchase of materials.
Why it matters
The agreement could give Fermi America the funding and credible operating path it has lacked since its October 2025 IPO and the collapse of its December 2025 tenant deal. Its Texas project depends on building generation capacity on a timeline a hyperscaler will tolerate.
The agreement covers 600 MW of power capacity, against a combined on-site generation potential of 17 GW that Project Matador could eventually reach. The counterparty's identity and the timeline for delivering the capacity remain undisclosed.
The players
Fermi America
Fermi America is a Texas-based energy and data center developer that went public in October 2025 and is building the Project Matador campus.
Amazon
Amazon is a major cloud computing company and one of the largest data center operators in the world, reportedly in talks with Fermi America.
Rick Perry
Rick Perry is a former Texas governor and U.S. Energy Secretary who has been publicly associated with Fermi America's leadership.
The details
Project Matador sits on land leased from the Texas Tech University system and plans a blend of nuclear, natural gas, solar, and wind generation. Fermi America's stock dropped sharply after a reportedly Amazon-linked $150 million tenant deal collapsed in December 2025, and the company has faced governance issues that led to halted construction.
Timeline
October 2025: Fermi America went public at a valuation of roughly $15 billion with no operational revenue.
December 2025: A $150 million initial tenant deal, reportedly involving Amazon, collapsed.
November 12, 2026: Fermi America announced the 600 MW agreement with an undisclosed hyperscaler.
November 13, 2026: A report said Fermi is reportedly back in talks with Amazon over Project Matador.
Seasonal Patterns
The 600 MW agreement follows the December 2025 collapse of a reportedly Amazon-linked $150 million tenant deal, which triggered a sharp drop in Fermi America's stock. The new deal is an effort to replace that lost anchor tenant with a hyperscaler able to fund early construction.
For Texas residents, the project's generation mix of nuclear, natural gas, solar, and wind will shape the region's power supply as the campus develops. The timeline for delivering the 600 MW has not been disclosed, so the effect on local grid capacity remains unclear.
The takeaway
A large capacity agreement is only as useful as the timeline behind it, and the buyer's identity and delivery schedule will determine whether Fermi America can convert the deal into operating revenue. Readers tracking data center buildouts should watch for a finalized contract and disclosed construction milestones.
Further reading
For broader context on the buildout behind this deal, see Data Centers coverage across Texas.
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