Fermi America Resumes Talks with Amazon for Major Data Center Project

Fermi America, the Texas-based data center venture co-founded by former Texas Governor Rick Perry, is reportedly re-engaging in talks with Amazon regarding Project Matador, a significant data center project. This initiative aims to generate up to 17 gigawatts (GW) of combined on-site power.

The negotiations come after a previous attempt to secure an anchor tenant fell through, which significantly impacted Fermi's market value. On November 12, 2026, Fermi announced a new power capacity agreement for 600 megawatts (MW) with an undisclosed investment-grade hyperscaler, widely believed to be Amazon. This agreement includes a $200 million upfront prepayment, signaling investor confidence in Fermi's potential.

Project Matador is planned on land leased from the Texas Tech University system and aims to utilize a mix of nuclear, natural gas, solar, and wind energy sources. Fermi's initial public offering in October 2025 valued the company at approximately $15 billion, but it faced challenges after a $150 million tenant deal with Amazon collapsed in December 2025, leading to a sharp decline in stock value.

For Fermi's shareholders, a finalized agreement with a major hyperscaler like Amazon could provide crucial funding and a clearer operational path, which have been lacking since the previous deal's failure. However, uncertainties remain regarding the official confirmation of Amazon as the counterparty and the company's ability to execute its ambitious construction plans.

New Developments on Fermi's Project Matador

• Fermi has confirmed Amazon as a customer for an initial commitment of 600 MW at its Project Matador campus in Texas, starting in 2027.
• The deal includes a $200 million prepayment, $15 million for early construction work, and $90 million for steel and building materials.
• Fermi is targeting initial power deliveries for late Q2 to early Q3 of 2027.
• The company has invested over $1.6 billion into Project Matador and has ambitions of expanding its capacity to 2.2 GW, with a long-term goal of 17 GW overall.
• Fermi reported a Q3 net loss of $141.6 million and confirmed the termination of its lease with AI cloud provider TensorWave.
• Fermi's stock saw intraday gains of 20-26% following the announcement of the Amazon deal, indicating a positive market reaction.
• Fermi went public in October 2025 at an estimated valuation of $15 billion, but has faced challenges including a prior deal with Amazon that collapsed in December 2025.