Fermi Inc. (NASDAQ:FRMI) announced agreements with an unnamed investment-grade hyperscale customer to develop 600 megawatts (MW) of power capacity at its Project Matador site in Texas, while reporting a third-quarter net loss of $141.6 million.
The agreements include a $200 million prepayment associated with the proposed 600 MW development, scheduled to begin in 2027, and a separate $15 million agreement covering early construction and site development activities.
The parties are also finalizing a $90 million agreement for structural steel and building materials. However, a definitive long-term lease has not yet been executed, and the customer’s identity remains undisclosed.
Separately, Fermi confirmed the termination of its data centre lease and services agreement with TensorWave, originally signed in August 2026. The associated AMD credit support agreement was also terminated.
Fermi Reports $141.6 Million Third-Quarter Loss
For the quarter ended September 30, 2026, Fermi recorded a net loss of $141.6 million, equivalent to $0.22 per basic and diluted share.
General and administrative expenses reached $142.2 million, including $65.8 million in non-cash stock-based compensation and $21.5 million in financial advisory fees settled through the issuance of common shares.
The company generated no revenue during the quarter and remains in the development stage.
Cash Position and Project Investment
Fermi reported total cash and restricted cash of $315.5 million at September 30, 2026, alongside net debt of $958.4 million, following a $463 million net increase in borrowings.
Net property, plant and equipment totalled approximately $1.67 billion, including $759.5 million invested during the first nine months of 2026.
Total assets increased to $2.1 billion from $1.4 billion at December 31, 2025, while the accumulated deficit widened to $489.3 million from $133.2 million.
Texas Tech University System Chancellor Brandon Creighton separately reaffirmed the university system’s land lease partnership with Fermi for the Project Matador development.