Fermi America received backing from chip giant AMD for the first phase of its Texas AI data center campus, sending its stock soaring.
The agreement gives Fermi credit support for a 222-megawatt power capacity lease at its Project Matador campus in Texas, alongside a partnership that could expand to 650 MW.
In a Tuesday release, Fermi said the deal brings it closer to securing financing for the project, but didn't disclose financial terms.
Fermi shares (FMRI) rose nearly 20% to $3.86 on Tuesday after hitting an all-time low of $3.20 on Monday.
The capacity matches an August lease with AI cloud provider TensorWave. At the time, Fermi said the 15-year contract could be worth up to $6.5 billion over the term.
"The pace of AI innovation is driving unprecedented demand for compute and the large-scale data center infrastructure needed to support it," AMD executive Mathew Hein said.
Fermi says it has invested more than $1.5 billion building out Project Matador, which is targeting roughly 17 GW of capacity.