Fermi says AMD is backing a 222 MW Texas AI data center lease for a cloud that runs only its chips

On 13 October 2026 Fermi America, which is building a large energy and AI campus called Project Matador in Carson County, Texas, said it signed a credit support agreement with AMD. It backs the lease for the first phase of the campus, with 222 megawatts of power capacity (a megawatt measures how much electricity a site can draw). The two companies also signed a framework for growing the partnership to up to 650 megawatts.

Credit support means AMD is putting its own credit behind the deal. Fermi says that is a key step toward getting the project financed, because lenders want a strong name standing behind the rent before they fund construction.

The tenant matters here. The first-phase lease (a long-term rental of the data center), announced in August, is with TensorWave, an AI cloud that runs only AMD Instinct GPUs (graphics chips used for AI). Fermi says that lease is worth about $6.5 billion over 15 years, with delivery starting in the second half of 2027. So AMD is helping a customer get the building it needs to run more AMD chips. An AMD strategy executive is quoted in the release saying the deal helps customers deploy AMD-powered AI infrastructure at scale.

Update, 14 Oct: On 14 October Fermi filed a fact sheet with US regulators that adds detail. Fermi says AMD's backing starts only once construction is finished and rent begins on the final delivery phase, so AMD is not on the hook while the site is being built. Fermi also says the backing ends early if TensorWave, or a company guaranteeing its lease, keeps an investment-grade rating for 12 months in a row. An investment-grade rating is a grade from agencies like S&P or Moody's saying a company is very likely to pay its debts.

Why we file it. We're watching chip makers back the data centers their customers rent. It can bring in chip demand sooner, but it also ties the chip maker to how well that customer pays its rent.

How we read it. AMD stays green on the map. We see it as a small step for now, because the size of AMD's backing, its term and its cost were not disclosed, Fermi says AMD's obligations come with conditions, and the TensorWave lease has not closed yet. Its closing date was pushed to 31 October 2026.

Why it matters to you: when chip makers back the leases on buildings their own customers rent, more of the AI build-out rests on the chip makers' balance sheets, not just the cloud companies'. Fermi's filing says AMD's backing can end early, once TensorWave or its guarantor keeps an investment-grade rating for 12 months in a row.

What would change this: AMD disclosing the size of its commitment, the lease closing or slipping again, or project financing for the campus being signed or falling through.