Key insights
- Fermi Inc. shares surged following the announcement of a credit support agreement with AMD for its Project Matador AI infrastructure development in Texas. This deal supports phase one of the project, which will deliver 222 MW of power capacity, and represents a key milestone for project financing. The agreement also includes a framework for potential future expansion. The partnership is seen as crucial for expanding infrastructure capacity for next-generation AI solutions.
Investing.com -- Fermi Inc (NASDAQ: FRMI) shares jumped 13.2% in premarket trading Tuesday after the company announced a credit support agreement with AMD for its Project Matador AI infrastructure development in Carson County, Texas.
The agreement with Advanced Micro Devices Inc (NASDAQ: AMD) supports a lease for phase one of the project, which will deliver 222 megawatts of gross power capacity. The deal represents a key milestone toward securing project financing for the facility. The companies also signed a framework agreement for potential future expansion of up to 650 MW of gross power capacity.
The credit support agreement relates to Fermi's first customer lease, which was announced on August 10, 2026.
"We are thrilled to partner with AMD as we advance development at Project Matador," said Lee McIntire, Fermi Chief Executive Officer. "Our strategic partnership establishes a framework for phases two and three."
Mathew Hein, Senior Vice President and Chief Strategy Officer of Corporate Development at AMD, commented, "Our collaboration with Fermi is an important step in expanding the infrastructure capacity needed to bring next-generation AI solutions to market."
Fermi is developing Project Matador as a large-scale energy and AI infrastructure site in the Texas Panhandle. The company has invested more than $1.5 billion in the buildout to date. The project is designed to provide power infrastructure for AI computing facilities, delivered behind the meter on a private grid.
Subject to entering into binding customer agreements, the project is expected to scale to approximately 17 GW, with capital deployment matched to commercial commitments.
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