Fermi America said on 13 October 2026 that it has signed a credit support agreement with the chip company AMD [1]. The agreement backs a lease for the first phase of Project Matador, Fermi’s planned energy and AI campus in Carson County, Texas, with 222 megawatts (MW) of gross power capacity.
Fermi said the phase-one lease is in line with its first customer lease, which it announced on 10 August 2026 [1]. The two companies have also signed a separate agreement setting out a partnership and a framework for future expansion of up to 650 MW.
What is credit support?
When a company signs a long lease for a data centre, the landlord and its lenders want to know the rent will be paid. Credit support means a stronger company stands behind some of those obligations. That can make it easier for the developer to borrow money to build.
Fermi called the deal “a key milestone toward securing project financing” [1]. That means the financing is not in place yet. Fermi did not say how much AMD is backing, for how long, or on what terms.
Who is the tenant?
The release does not name the tenant in its main text. In its list of risks, Fermi mentions “the closing of the TensorWave lease”, alongside the conditions AMD must see met before its obligations apply [1]. So the lease has not closed yet either.
What the 650 MW means
The 650 MW is a framework for possible later growth, not a signed lease. Fermi chief executive Lee McIntire said: “Our strategic partnership establishes a framework for phases two and three. We have the land, the permits, the water, the power equipment, and the fiber network that give us distinct performance advantages” [1].
Mathew Hein, AMD’s senior vice president and chief strategy officer of corporate development, said: “Our collaboration with Fermi is an important step in expanding the infrastructure capacity needed to bring next-generation AI solutions to market” [1].
The bigger project
Fermi says it has invested more than $1.5 billion in building out the site so far [1]. It plans to supply power on site through its own private grid. Fermi also says that, subject to signing binding customer agreements, the project is expected to grow to about 17 gigawatts (GW). Both figures are Fermi’s own.
What this means
- A big chip company is standing behind the first lease. That could help Fermi raise money for construction.
- Nothing is closed yet. The financing, the lease and AMD’s obligations all still depend on conditions being met.
- The numbers are missing. Fermi gave no value or terms for the credit support, and the 650 MW is a plan, not a contract.
Sources
- ACCESS Newswire (Fermi Inc. release), “Fermi Signs Credit Support Agreement with AMD and Announces Partnership”, 13 October 2026. https://www.accessnewswire.com/newsroom/en/oil-gas-and-energy/fermi-signs-credit-support-agreement-with-amd-and-announces-partnership-1236099
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