Share
Fermi America, the Texas data center venture co-founded by former Texas Governor Rick Perry, is reportedly back in talks with Amazon. The negotiations center on Project Matador, a sprawling campus that aims to generate up to 17 GW of combined on-site power.
It is a notable reunion. The last time Fermi tried to lock down an anchor tenant, the deal fell apart and took a sizable chunk of the company’s market value with it.
What’s on the table
On November 12, 2026, Fermi announced a new power capacity agreement covering 600 MW. The counterparty is an undisclosed investment-grade hyperscaler, widely believed to be Amazon.
The agreement comes with a $200 million upfront prepayment. That cash is the kind of signal investors have been waiting for: a customer willing to pay before the lights are on.
The deal also includes substantial commitments tied to early construction and the purchase of materials.
For context, the earlier failed arrangement was a $150 million initial tenant deal. The new prepayment is larger, and it is attached to a defined block of capacity.
The 600 MW figure is still a small fraction of the 17 GW Fermi says Project Matador could eventually produce.
How Fermi got here
Project Matador sits on land leased from the Texas Tech University system. The plan calls for a blend of nuclear, natural gas, solar, and wind generation to power the site directly.
AI, tech, and the markets they move—in one daily briefing.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
We respect your privacy. Unsubscribe anytime.
Fermi went public in October 2025 at a valuation of roughly $15 billion. It had no operational revenue at the time.
Then came December 2025. A $150 million initial tenant deal, reportedly involving Amazon, collapsed.
The fallout was swift. Fermi’s stock dropped sharply as the failed agreement exposed execution risks that the IPO enthusiasm had glossed over.
The company has faced major internal governance issues, which led to halted construction and further pressure on the share price.
What this means
For Fermi shareholders, the stakes are straightforward. A finalized agreement with a hyperscaler would give the company essential funding and a credible operating path, two things it has lacked since the December 2025 collapse.
The $200 million prepayment matters more than the headline capacity number. Upfront cash from an investment-grade customer is a vote of confidence that a press release cannot fake.
Still, the risks have not gone away. The counterparty on the 600 MW agreement has not been officially named, and the broader Amazon talks are reported rather than confirmed as a completed deal.
Execution is the bigger question. Fermi has to prove it can actually build generation capacity across nuclear, gas, solar, and wind, and do it on a timeline a hyperscaler will tolerate.
What to watch next: whether Amazon is formally confirmed as the counterparty, whether construction resumes in earnest, and whether Fermi’s governance problems are resolved.
