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Fermi lands binding TensorWave power deal worth up to $6.5B
The Phase 1 agreement covers 222 megawatts delivered over 15 years, as Siemens Energy equipment arrives and the company reported a net proceeds boost from a convertible note offering.
Fermi Inc. (NASDAQ: FRMI) said its plans are starting to translate into contracts after its second-quarter earnings call, with Chairman Marius Haas telling investors the company met all five commitments from a 90-day plan launched three months earlier.
The centerpiece is a binding customer agreement with TensorWave for up to 650 megawatts of power across three phases. Phase 1 is a 15-year commitment for 222 megawatts of gross power delivered via a turnkey data center solution, which Chief Commercial Officer Anna Bofa said is worth about $6.5 billion in revenue over the term.
Fermi said it is also backing the schedule with hardware progress. The company reported three Siemens Energy F-class units rated above 242 megawatts reached the Port of Houston in July and cleared customs to support its 2028 and 2029 delivery targets, and it expects 640 megawatts of nameplate capacity by the fourth quarter of 2027, with the first 210 megawatts online by July 1, 2027.
Beyond the TensorWave commitment, Fermi said a new alliance with Hillcore Energy Partners adds another 2.6 gigawatts within three years, with Hillcore financing and building the facility while Fermi collects rent, doubling the campus's planned output to 4.8 gigawatts without extra capital. The quarter also included a stronger balance sheet, with Fermi upsizing an offering of more than $430 million in convertible senior notes for about $382 million in net proceeds after a capped call, and it named Lee McIntire as chief executive.
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