Fermi (FRMI) Stock Surges 16% on First-Ever Data Center Lease Worth $6.5B
TLDR
- Fermi stock jumped 16% to $6.82 in premarket trading after announcing its first data center lease
- The 15-year deal with AI cloud provider TensorWave is worth approximately $6.5 billion in total contracted revenue
- The lease covers 222MW of capacity at Fermiโs Project Matador campus in Amarillo, Texas
- Expansion rights could bring the total partnership to over 650MW across additional data centers
- Mizuho reiterated its Outperform rating and $11 price target following the announcement
Fermi (FRMI) stock surged 16% to $6.82 in premarket trading on Tuesday after the data-center developer finally landed its first tenant for its Project Matador campus in Amarillo, Texas.
The deal is a 15-year lease with AI cloud provider TensorWave, worth approximately $6.5 billion in total contracted revenue. That number had Wall Street paying attention fast.
Under the agreement, Fermi will develop, construct, and deliver data centers to TensorWave in a turnkey arrangement. TensorWave will then take occupancy in phases starting in the second half of 2027.
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