Wed, Oct 14, 2026
Fermi discloses TensorWave lease economics and delivery timeline
Analysis
Mildly positive: the disclosed ~75-80% phase-one NOI margin and per-MW capex figures give investors a first look at the expected profitability of the already-announced $6.5B TensorWave lease, and the detailed tenant-backing information (TensorWave's $350M Series B, AMD credit support) reinforces counterparty credibility. No new financial commitments or changes to previously disclosed deal terms are included.
Key points
- Fact sheet details the TensorWave lease at Project Matador: $6.5B over 15 years, 222 MW total power capacity including 156 MW of critical IT capacity
- Phased delivery begins Q4 2027 and completes early 2028; 2.5% annual rent escalators
- Estimated phase one project-level NOI margin of approximately 75-80%, with natural gas and variable power charges passed through to TensorWave
- Unit economics: power capex of $3-4 million per MW of total power capacity; turnkey data center capex of $10-12 million per MW of critical IT capacity
- Turnkey lease structure: Fermi develops, builds and delivers; TensorWave takes occupancy in phases
- TensorWave, an AI cloud built exclusively on AMD Instinct GPUs, has raised a $350 million Series B (investors include AMD, Magnetar, Maverick Silicon, Nexus Venture Partners) and holds more than 2 GW of secured capacity across its platform
- AMD's credit support for the lease can end early if TensorWave or its guarantor holds an investment-grade rating for 12 consecutive months
Deal amendment
Amendment · Wed, Oct 14, 2026View the deal
DealProject Matador · TensorWave