Fermi has signed a credit support agreement with AMD to support construction of the first data center at Project Matador in Carson County, Texas, with AMD acting as guarantor as Fermi seeks financing. The deal covers an initial 222MW of IT capacity, with a separate agreement outlining a framework for potential expansion to 650MW of gross power capacity. AMD has a direct stake in the project's success, as thousands of its Instinct GPUs are slated for AI training and inference workloads at the site. Fermi's existing contract with AI cloud operator TensorWave, signed in August, is expected to be worth up to $6.5 billion over 15 years, with the first 222MW targeted to come online in the second half of 2027.
The credit support structure is significant because it shifts financial risk for a major greenfield campus onto a chip supplier, a model that could influence how other large-scale AI data center projects secure construction financing. Fermi's share price has fallen from $25 on its first trading day to $3.72, reflecting the company's turbulent trajectory after an unnamed anchor tenant withdrew and two executives departed, making the AMD-backed financing arrangement a critical lifeline for the 17GW campus vision.
Named companies AMD and Fermi, a specific financial agreement, and a named US campus project in Amarillo, Texas make this a concrete, newsworthy deal distinct from previously published Texas construction stories.