Aug 13, 2026 earnings call — Signed TensorWave deal and accelerated power build
Signed binding agreement with TensorWave for up to 650 megawatts; initial 15-year 222 megawatts phase represents approximately $6.5 billion revenue.
Revenue $0.0B (est $0.0B) · EPS $-0.04 (est $-0.05)
Key quotes
"We have signed a binding agreement with TensorWave, representing up to 650 megawatts of capacity if all expansion options are exercised."
"The alliance between our 2 companies brings approximately 2.6 gigawatts of additional power to the site under a build, own, operate, transfer structure, doubling Project Matador's total power output to 4.8 gigawatts."
"With this in mind, we've appointed Lee McIntire effective this Tuesday."
Analyst Q&A 9
power pass-through and hedging
Q (Paul Golding · Macquarie): Analyst asked how the power pass-through works in the TensorWave lease, what the $6.5 billion includes, and how Fermi plans to hedge power from its private grid.
A: Management did not answer the analyst's detailed questions in this turn. The only management line was a technical check with the operator and no substantive response was given.
"Operator, we can hear you. Operator, are you there?" — Marius Haas (CHAIR)
remaining project spending
Q (Nicholas Amicucci · Evercore): How much has been spent and how much cash remains to spend toward the initial 222 megawatts and the incremental 640 megawatts? Also, how confident are you to execute a turnkey data center approach?
A: Management said cash decreased about 50% in the quarter and that deal-specific cash flows will follow the signed agreements. They plan disciplined capital deployment and will match outflows to signed deals and inflows as the site moves from Phase 0 into Phase 1.
"When we think about the deal we just signed, there are specific cash flows that will be associated with that." — Robert Masson (CFO)
clarification acknowledgement
Q (Nicholas Amicucci · UBS): Analyst acknowledged the prior answer and said it was clear.
A: There was no management response in this exchange; the analyst simply said the prior answer was clear.
capex, margins, timing, tenants
Q (John Hodulik · UBS): What is the expected CapEx to fulfill the first phase and has any been spent? What margins might be on the $6.5 billion, when does the first ~200 megawatts start, and any update on other tenant discussions and types (neoclouds vs hyperscalers)?
A: Management gave market benchmark ranges instead of a single total: battery/power side around $3 million to $4 million per megawatt and turnkey data center around $10 million to $12 million per megawatt, and they declined to disclose a total project figure. They expect phased revenue commencement around the end of Q3 to early Q4 of '27, and said they are in advanced conversations with additional customers including hyperscalers as well as neoclouds.
"We anticipate the build and the sort of revenue commencement to start in phases." — Anna Bofa
profit expectation and contract risks
Q (Stephen Gengaro · Stifel): Is the prior expectation of $700m–$900m EBITDA per gigawatt still reasonable? And what are the key risk parameters and timing hurdles for the TensorWave contract and liabilities for delays? Also, will the customer provide working capital so Fermi doesn't need large cash outlays?
A: Management said they won't give a specific EBITDA number but the contract type and profit expectations are in line with market deals and the structure is favorable. They explained risk is reduced by partnering with a data center provider and securing an investment-grade backstop and project financing is the next step; capital deployment will be staged and matched to specific projects once contracts are signed.
"So in terms of the risk parameters, one of the things that you do when you are engaged in the process of driving towards an agreement is you look and see how do you reduce your risks." — Anna Bofa
power pass-through and cooling options
Q (Paul Golding · Macquarie): Can you restate how power pass-through is treated in TensorWave and how you hedge fuel for the private grid? Also, is there market demand for basic powered shells or do customers want turnkey data centers and more advanced cooling?
A: Management said the variable energy charge is a full pass-through to the customer to reduce Fermi's commodity risk, and therefore they do not hedge that energy. They also said demand varies: Fermi will offer powered land, powered shell, and turnkey options; the first deal is full turnkey including electrical/mechanical, battery storage, and chilled water and liquid cooling.
"We will always take that variable energy charge and have it be a full pass-through on to the customer to reduce that risk." — Anna Bofa
Hillcore BOOT model and repeatability
Q (Ocean Wall): How unusual is the Hillcore BOOT structure and can Fermi repeat this model going forward? Also, did sequencing come together faster than planned?
A: Management called the Hillcore transaction a one-of-a-kind way to bring in a power developer to stand up power concurrently, accelerate speed to power, and grow revenue faster, and said they will keep exploring it given a 17 gigawatts runway. They added that doubling near-term power capacity is exactly what tenants ask for and the focus now is delivering power in 2027.
"With 17 gigawatts of runway, we are going to keep exploring it." — Jacobo Blanes (COO)
IG backstop, optionality, Hillcore details, CEO search
Q (Jyoti Yadav · Mizuho): Will the TensorWave investment-grade backstop cover the full 15 years and does the 650 megawatt optionality expire? Also, what equipment does Hillcore own, and when do land fees start? Finally, what is the status of the external CEO search?
A: Anna confirmed the backstop will cover the full 15 years and does not expire, which supports moving to project finance; Jacobo said TensorWave covers a 330-acre campus in three phases and that power delivery timing will dictate phases 2 and 3. Jacobo added Hillcore will bring GE power equipment and Phase 1 could be between 360 and 720 megawatts within 24 months, and Marius said the external CEO search continues with Lee as a strong interim choice.
"So that backstop will be for the full 15 years." — Anna Bofa
customer mix and regulatory impact
Q (Derrick Whitfield · Texas Capital): How has the prospective tenant backlog changed in the last 90 days? And do you expect any regulatory hurdles for your initial grid power given the Governor Abbott data center audit?
A: Management said they have prioritized partners and remain engaged with top hyperscalers and other customers; they expect more deal announcements in coming months as conversations are advanced. On regulation, they said their behind-the-meter solution and their Xcel grid connection (they sit on SPS, not ERCOT) are not impacted, and that Fermi does not put power onto the public grid or onto Texan ratepayers' bills.
"Fermi does not create and is not dependent on the grid." — Jacobo Blanes (COO)