Fermi and TensorWave Agree to Extend Closing Date to October 31, 2026

Fermi and TensorWave push back their large AI data center lease closing to late October while working to finalize financing-related conditions.

Rhea-AI Summary

Fermi (FRMI)/b) and TensorWave have amended their Data Center Lease and Services Agreement to extend the Lease closing date from September 30, 2026 to October 31, 2026, with all other terms unchanged.The Lease covers 222 MW of total facility power at Fermi's Project Matador campus and represents approximately $6.5 billion in expected total revenue over its initial 15‑year term. The Lease remains subject to closing conditions, including related work letters and guaranties, final operations schedules and service-level agreement, Board approvals, and project-level financing sufficient to fund construction. Fermi is negotiating a guaranty of certain lease obligations with an investment-grade counterparty, and the closing date extension is intended to allow more time to finalize that guaranty and other remaining conditions.

Positive

• 222 MW lease at Project Matador with ~$6.5 billion expected revenue over 15 years
• Closing date extended to October 31, 2026, preserving the existing lease terms
• $1.5 billion already invested in Project Matador buildout
• Project Matador expected to ramp to about 17 GW, with capital matched to commercial commitments

Negative

• Lease effectiveness delayed by one month, from September 30 to October 31, 2026
• Lease remains conditional on project-level financing and other closing conditions
• Guaranty of certain lease obligations with an investment-grade counterparty is not yet finalized

News Explained

The lease’s expected economics are unchanged, but closing moves to October 31 while the guaranty and other conditions remain unresolved.

Fermi and TensorWave have signed an amendment extending the lease closing date from September 30, 2026 to October 31, 2026; the lease has not yet closed because specified conditions remain outstanding.

The amendment leaves the other lease terms in effect, so this disclosure changes the timing of the contemplated transaction rather than its stated scope or economics.

The latest supplied fundamentals show $62.536 million of cash and equivalents and a second-quarter operating cash outflow of $48.671 million as of June 30, 2026; at that reported quarterly rate, the supplied calculation equals 116.9 days of operating cash use.

That company-level liquidity measure does not establish the project-level financing condition required for closing.

The named resolution point is October 31, 2026: closing would require the guaranty, work letters, final operating schedules and service-level agreement, Board approvals, and project-level financing to be secured or waived.

Sources and calculations

• Fermi and TensorWave closing-date extension release (2026-09-22)
• Fermi second-quarter 2026 fundamentals (2026Q2)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $62,536,000 / ($48,671,000 / 91) = 116.9 days

Argus 15 min delay

-1.56% vs previous close $5.06 last price 0.8x rel. volume Open Argus

Details

Market Reaction – FRMI

$5.01 $5.22 Day Range

$3.24B Market Cap

Following this news, FRMI has declined 1.56%, reflecting a mild negative market reaction. The stock is currently trading at $5.06.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

The August 13 lease announcement was followed by a 13.16% decline in the 24-hour price reaction; thi...

Analysis

The August 13 lease announcement was followed by a 13.16% decline in the 24-hour price reaction; this update changed only the closing deadline, while the lease’s other terms remained unchanged.

Key Figures

New closing date: October 31, 2026 Previous closing date: September 30, 2026 Expected total revenue: $6.5 billion +2 more

New closing date

October 31, 2026

Amended TensorWave lease deadline

Previous closing date

September 30, 2026

Superseded lease deadline

Expected total revenue

$6.5 billion

Initial 15-year lease term

Facility power

222 megawatts (MW)

TensorWave lease at Project Matador

Initial lease term

15 years

TensorWave lease

Historical Context

1 past event · Latest: Aug 13

1 event

1. Aug 13

   TensorWave lease signing

   24h Move

   -13.2%

   Signed 15-year TensorWave lease covering 222 MW and approximately $6.5 billion revenue.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

service-level agreement, investment-grade counterparty, behind-the-meter, combined-cycle natural gas

4 terms

service-level agreement technical

"finalizing operations schedules and a service-level agreement"

A service-level agreement (SLA) is a formal contract that spells out the specific duties, performance standards, response times and remedies a service provider must meet for its customers. For investors, SLAs matter because they shape how reliably a business can deliver products or services, influence recurring revenue, potential penalties, and customer retention—think of an SLA as a performance promise or warranty that helps predict a company’s operational risk and future cash flow.

investment-grade counterparty financial

"a guaranty of certain lease obligations with an investment-grade counterparty"

A counterparty judged to have low credit risk because credit-rating agencies assign it an “investment-grade” rating (typically the top four broad categories, such as BBB–/Baa3 or higher). It means the other party in a trade, loan, or contract is generally seen as more likely to meet its payment and contractual obligations. This matters to investors because dealing with investment-grade counterparties reduces the chance of loss from default and often affects margin, collateral and regulatory capital requirements, like choosing a well-rated bank versus an unrated or junk-rated one.

behind-the-meter technical

"delivered behind the meter and on a private grid"

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

combined-cycle natural gas technical

"the nation's biggest combined-cycle natural gas project"

Combined-cycle natural gas refers to a type of power plant that first burns natural gas to spin a gas turbine and then captures the turbine’s hot exhaust to produce steam that drives a second steam turbine, extracting more energy from the same fuel. Investors pay attention because this design raises fuel efficiency, lowers operating costs and usually reduces emissions per megawatt-hour, affecting profitability, competitiveness and the economics of electricity supply—like getting extra miles from one tank of gas.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, TX / ACCESS Newswire / September 22, 2026 / Fermi Inc. (NASDAQ:FRMI)(LSE:FRMI), operating as Fermi America™ ("Fermi" or the "Company"), today announced that its wholly owned subsidiary, Fermi Campus 1 LLC, and TensorWave TEX1, LLC ("TensorWave") have signed a First Amendment to their Data Center Lease and Services Agreement (the "Lease"). The amendment extends the closing date under the Lease from September 30, 2026 to October 31, 2026. All other terms of the Lease remain unchanged and in effect. The Lease covers 222 megawatts (MW) of total facility power at Fermi's Project Matador campus and represents approximately $6.5 billion in expected total revenue over its initial 15-year term.

Parties Working Constructively Toward Closing

The Lease, signed in August 2026, provides that its effectiveness is subject to the satisfaction or waiver of specified closing conditions. Those conditions include executing and delivering related work letters and guaranties; finalizing operations schedules and a service-level agreement; obtaining Board approvals; and securing project-level financing sufficient to fund construction of the leased premises.

The Company continues to negotiate a guaranty of certain lease obligations with an investment-grade counterparty. Both parties extended the closing date to allow more time to finalize that guaranty and complete the remaining closing conditions.

The Company believes the extension reflects both parties' continued commitment to the transaction and the constructive posture of all parties in the guaranty discussions.

"Both Fermi and TensorWave remain fully committed to this lease, and our decision to formally extend the closing date together reflects that," said Lee McIntire, Chief Executive Officer of Fermi. "Our remaining work is to finalize the lease guaranty with our counterparty. Those discussions are active, constructive and progressing, and we look forward to closing and delivering Project Matador's first data center for TensorWave."

Project Matador

Fermi America is where AI gets power. The Company is developing one of the world's largest advanced energy and AI ecosystems, on an area in the Texas Panhandle. The site, called Project Matador, is secured or under long-term lease with more than $1.5 billion invested in buildout to date. Fermi designed the project to solve the single biggest constraint in AI infrastructure: access to large-scale, reliable power on a timeline that meets customer demand - delivered behind the meter and on a private grid built and operated on site. Subject to entering into binding customer agreements, the project is expected to ramp to approximately 17 GW, with capital deployment matched to commercial commitments.

About Fermi America™

Fermi America™ (Nasdaq & LSE: FRMI) develops next-generation private electric grids that deliver highly redundant power at gigawatt scale to support next-generation intelligence and AI compute. Fermi America™ combines cutting-edge technology with a deep bench of proven world-class multi-disciplinary leaders with a combined 25 GW of experience, to create one of the world's largest, 17 GW next-gen private grid, helping ensure America's energy and AI dominance. The behind-the-meter Project Matador campus is expected to integrate the nation's biggest combined-cycle natural gas project, one of the largest clean, new nuclear power complexes in America, utility grid power, solar power, and battery energy storage, to support hyperscale AI and advanced computing. For additional information visit www.fermiamerica.com

About TensorWave

TensorWave is the AI cloud purpose-built for performance. Powered exclusively by AMD Instinct™ Series GPUs, TensorWave delivers high-bandwidth, memory-optimized infrastructure that scales with the most demanding training and inference workloads. Backed by funding from investors including Magnetar, AMD Ventures, Maverick Silicon, Nexus Venture Partners, and Western Frontier, TensorWave operates one of the world's largest all-AMD GPU clouds and is expanding rapidly to meet global demand. For more information, please visit tensorwave.com

Contacts

Investor Contacts
Barry Sievert | IR@fermiamerica.com

Media

Fermi Inc. Communications | media@fermiamerica.com

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws. These include statements regarding the expected closing of the Lease and the timing thereof; the satisfaction or waiver of the conditions to closing, including the negotiation, execution and delivery of the rent guaranty and other guaranties and the completion of project-level financing; the parties' commitment to the transaction and the status and outcome of ongoing negotiations; the anticipated revenue under the Lease; the expected construction, delivery and operation of the leased premises; the potential exercise of expansion options; and the expected timing, phasing, capacity and configuration of Project Matador. Such statements rest on current expectations and assumptions and are subject to risks and uncertainties, including the risk that the conditions to closing are not satisfied by October 31, 2026 or at all, that the parties are unable to agree on the terms of the rent guaranty, that either party exercises its right to terminate the Lease if the closing conditions are not satisfied, and those described in the Company's filings with the U.S. Securities and Exchange Commission. Actual results could differ materially. There can be no assurance that the closing conditions will be satisfied or that the transactions contemplated by the Lease will be consummated. Forward-looking statements speak only as of today. The Company undertakes no obligation to update them except as required by law.

SOURCE: Fermi Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What key closing conditions must be satisfied before the Fermi–TensorWave lease becomes effective?

The Lease’s effectiveness is conditioned on several items: executing and delivering related work letters and guaranties, finalizing operations schedules and a service-level agreement, obtaining required Board approvals, and securing project-level financing sufficient to fund construction of the leased premises.

Why did Fermi and TensorWave agree to extend the closing date?

Both parties extended the closing date to October 31, 2026 to allow more time to finalize a lease guaranty with an investment-grade counterparty and to complete the remaining closing conditions. The company believes the extension reflects the parties’ continued commitment to the transaction.

What is Project Matador and how large could it become?

Project Matador is Fermi America’s behind-the-meter campus in the Texas Panhandle, designed as a large advanced energy and AI ecosystem. The site is secured or under long-term lease with more than $1.5 billion invested in buildout to date and, subject to entering into binding customer agreements, is expected to ramp to approximately 17 GW of next-generation private grid capacity.

What type of infrastructure will support Project Matador’s AI and compute workloads?

Project Matador is expected to integrate the nation’s biggest combined-cycle natural gas project, one of the largest clean, new nuclear power complexes in America, utility grid power, solar power, and battery energy storage to support hyperscale AI and advanced computing on a private grid.

Who is TensorWave and what kind of AI cloud will it run at Project Matador?

TensorWave is an AI cloud provider focused on performance, powered exclusively by AMD Instinct Series GPUs. It offers high-bandwidth, memory-optimized infrastructure for demanding training and inference workloads and operates one of the world’s largest all-AMD GPU clouds, which it is expanding to meet global demand.