From Startup Fortune · · 1m 20s
Fermi Gets $200m Prepayment for 600 MW Power Deal
Fermi secures $200 million prepayment from unnamed hyperscaler for 600 MW power at Project Matador.
In brief
Fermi secures $200 million prepayment from unnamed hyperscaler for 600 MW power at Project Matador. Fermi received $200 million prepayment from an unnamed investment-grade hyperscaler for 600 MW power at Project Matador in Texas, with delivery starting in 2027. Originally reported by Startup Fortune.
Prepayment Announcement
Fermi Inc. announced an unnamed investment-grade hyperscaler prepaying $200 million for 600 MW power at Project Matador.
Prepayment Details
The deal includes $200 million prepayment, $15 million early construction agreement, and $90 million materials purchase.
Timeline of Events
Power delivery starts in late q2 or early q3 2027 with crews mobilized by december 1.
Customer Motivation
The buyer is worried about losing power, not the landlord, as cash arrives before lease signing.
Financial Context
Fermi reported a $141.6 million net loss for q3 2026 with $315.5 million cash and $672 million net debt.
Project Progress
Fermi has installed gas turbines, 4.6 miles of gas line, 7.2 miles of water line, and 11.3 miles of fencing.
Business Strategy Shift
Fermi is moving to 'Powered Land Plus' arrangements where customers build data centers while Fermi supplies power.
What to Watch Next
The $200 million prepayment must land this week, and the final lease must match the prepayment's confidence.
The bottom line
Fermi received $200 million prepayment from an unnamed investment-grade hyperscaler for 600 MW power at Project Matador in Texas, with delivery starting in 2027.
