AMD Credit Support Lifts Fermi’s Texas Data Center Lease Financing
Fermi shares rose 16% after AMD signed a credit support agreement for the first phase of its Project Matador campus in Texas. The backing provides a guaranty for TensorWave’s roughly $6.5 billion lease, making the 222 MW phase easier to finance. The lease still needs to close by Oct. 31, and Fermi must secure project financing before its Nov. 12 third-quarter report.
Fermi's Project Matador campus in Texas is planned around AI and power infrastructure. Its first phase covers 222 MW. The initial binding lease is with AI cloud provider TensorWave, runs 15 years, and is worth about $6.5 billion; the site is intended to host many AMD Instinct GPUs.
AMD's credit support provides the guaranty that the lease had awaited, which may make financing the first phase easier. The lease must still close by Oct. 31, and Fermi must obtain project financing before reporting third-quarter results on Nov. 12. Fermi has already spent more than $1.5 billion on the project.
The AMD-backed lease could affect investors, lenders, and the Texas region hosting Project Matador. If phase one closes and financing follows, construction and operations may support local jobs, tax revenue, and electricity demand, while also testing grid capacity and community resources. Broader AI users might benefit from added data-center capacity, though delays or financing shortfalls could leave planned infrastructure unused and weigh on Fermi's shareholders. This is a reasoned possibility, not a prediction.