Fermi and TensorWave Extend Conditional Lease Closing Date to October 31, 2026
Fermi and TensorWave have signed an amendment extending the closing date for their Project Matador data center lease while guaranty negotiations and other conditions remain outstanding.
Fermi Inc. said its subsidiary, Fermi Campus 1 LLC, and TensorWave TEX1, LLC have amended their data center lease agreement, extending the scheduled closing date from September 30, 2026 to October 31, 2026. The lease remains conditional and has not yet closed.
The amendment gives the parties additional time to complete a guaranty covering certain lease obligations with an investment-grade counterparty. Fermi said discussions are continuing, alongside work to satisfy the other requirements for closing.
The lease, which was signed in August 2026, becomes effective only after specified closing conditions are satisfied or waived. These include the execution and delivery of related work letters and guaranties, completion of operating schedules and a service-level agreement, approval from the relevant boards, and project-level financing sufficient to fund construction of the leased premises.
The agreement covers 222 megawatts (MW) of total facility power at Fermi’s Project Matador campus. Fermi said the lease represents approximately $6.5 billion in expected total revenue over its initial 15-year term. That expectation remains subject to the lease’s closing conditions and the risks described by the company.
Fermi said the amendment does not change the other provisions of the lease, which remain unchanged and in effect.
Fermi stated that the closing conditions may not be completed by October 31, 2026, or at all. The parties may also fail to reach agreement on the rent guaranty, and either party may have the right to terminate the lease if the closing conditions are not satisfied.
The company said there can be no assurance that the conditions will be met or that the transactions contemplated by the lease will be completed.
Fermi said more than $1.5 billion has been invested in the buildout of the Project Matador site to date. Subject to entering into binding customer agreements, the company said the project is expected to ramp to approximately 17 GW, with capital deployment matched to commercial commitments.
The project is being developed in the Texas Panhandle and is intended to support large-scale power and AI computing infrastructure. The statements concerning expected project capacity, construction, delivery and operation are subject to risks and uncertainties identified by Fermi.
Fermi Inc. (NASDAQ:FRMI)(LSE:FRMI) announced that its wholly owned subsidiary, Fermi Campus 1 LLC, and TensorWave TEX1, LLC have signed a First Amendment to their Data Center Lease and Services Agreement. The amendment extends the closing date from September 30, 2026 to October 31, 2026. The lease has not yet closed, and all other lease terms remain unchanged and in effect.
The lease remains subject to the satisfaction or waiver of specified closing conditions. These include executing and delivering related work letters and guaranties, finalising operations schedules and a service-level agreement, obtaining Board approvals, and securing project-level financing sufficient to fund construction of the leased premises.
The parties extended the closing date to allow more time to finalise a guaranty of certain lease obligations with an investment-grade counterparty and to complete the remaining closing conditions. Fermi said discussions regarding the guaranty are active, constructive and progressing.
The source states that the closing conditions may not be satisfied by October 31, 2026 or at all, and that the parties may be unable to agree on the terms of the rent guaranty. It also states that either party may exercise its right to terminate the lease if the closing conditions are not satisfied. The source says there can be no assurance that the closing conditions will be satisfied or that the transactions contemplated by the lease will be consummated.
The lease covers 222 megawatts (MW) of total facility power at Fermi’s Project Matador campus. The source states that the lease represents approximately $6.5 billion in expected total revenue over its initial 15-year term. These statements are subject to the closing conditions and the risks and uncertainties described in the source.
The source states that more than $1.5 billion has been invested in the buildout of the Project Matador site to date. It also states that, subject to entering into binding customer agreements, the project is expected to ramp to approximately 17 GW, with capital deployment matched to commercial commitments. The source identifies these and other statements about the project’s expected capacity, configuration, construction, delivery and operation as forward-looking and subject to risks and uncertainties.
Fermi said it believes the extension reflects both parties’ continued commitment to the transaction and the constructive posture of all parties in the guaranty discussions. The source also states that the parties remain subject to the outstanding closing conditions, including the guaranty, and that there can be no assurance that the lease will be consummated.