DENVER, Colo. (247marketnews.com) — The artificial intelligence boom is creating a second high-stakes race alongside the battle to build better chips: securing enough reliable electricity to run them. Fermi America (NASDAQ:FRMI) is positioning itself at the center of that challenge, announcing a credit-support agreement with Advanced Micro Devices (NASDAQ:AMD) and a framework for expanding its Texas AI infrastructure project.
The agreement supports a lease for the first phase of Project Matador in Carson County, Texas, representing 222 megawatts of gross power capacity, consistent with the first customer lease Fermi announced on August 10, 2026. The companies have also outlined a partnership framework for future phases totaling up to 650 MW of gross capacity.
AMD sees a growing opportunity in the infrastructure buildout. “The pace of AI innovation is driving unprecedented demand for compute and the large-scale data center infrastructure needed to support it,” said Mathew Hein, AMD’s senior vice president and chief strategy officer of corporate development. He described the collaboration as a step toward expanding capacity for next-generation AI solutions.
Fermi CEO Lee McIntire emphasized the project’s intended advantages, citing its land, permits, water, power equipment and fiber network. The company’s central proposition is to bring power and computing infrastructure together through a private, behind-the-meter electricity grid, potentially helping customers avoid some of the delays associated with conventional power arrangements.
The longer-term ambition is far larger than the initial AMD-supported phase. Fermi says Project Matador is designed to scale toward approximately 17 gigawatts of capacity, subject to binding customer agreements and commercial commitments. Its proposed energy mix includes natural gas, nuclear, utility-grid power, solar and battery storage.
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