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Leases | 3 Months Ended
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Mar. 31, 2026
Leases [Abstract] |
Leases | Leases TTU Lease On May 14, 2025, the Company entered into a 99-year ground lease (“TTU Lease”) with Texas Tech University (“TTU”) for 5,769 acres of land in Carson County, Texas, intended for the development of Project Matador. Following a first amendment executed in August 2025, the Project Matador site was set at approximately 4,523 acres, with an additional 713-acre tract to be added upon transfer from a federal agency to TTU. Lease commencement for the 4,523-acre site occurred in September 2025. The lease term for the additional 713-acre tract had not yet commenced as of March 31, 2026. The lease contains no lessee-controlled options to extend or terminate and provides for annual escalations to lease payments. At lease commencement, the Company recognized an operating lease ROU asset and corresponding lease liability, measured at the present value of future lease payments, discounted using the Company’s incremental borrowing rate of 16.1%. As of March 31, 2026, the ROU asset and lease liability totaled $18,395 and $22,187, respectively. As of December 31, 2025, the ROU asset and lease liability totaled $21,737 and $21,320, respectively. The Company is obligated to pay annual base rent of $1,200 in the first year, escalating annually during the initial five years as specified in the lease agreement, with a fixed 3.0% annual escalator thereafter. During the years when the Company subleases powered shells to its subtenants, the Company will be required to pay variable lease payments based on (i) up to 1.0% of the appraised value of leased powered shell space in that year (up to $3,000,000 in total assessed value) and 0.5% on additional appraised value above $3,000,000, to the extent greater than the base annual rent, and (ii) a percentage of gross revenues from the sale of power (1.0% of gross revenues) and water (25.0% of gross revenues) to its subtenants. As of March 31, 2026, no variable lease payments have been made. The lease provides that, in order to begin vertical construction of data center facilities on the leased site, the Company must first receive a notice to proceed from TTU by December 31, 2026. Issuance of the notice to proceed is conditioned on, among other things, the Company's execution of a lease with a Phase 1 tenant for not less than 200 MW of capacity at Project Matador, together with other customary conditions. On March 30, 2026, TTU and the Company entered into a Collaboration Agreement regarding the future of Project Matador, which reflects each party's intent to move forward collaboratively with the development of the leased site. As a result of the agreement, the Company agreed to pre-pay rent in the amount of $2,000 within 75 days of the date of the Collaboration Agreement, with an additional $9,000 to be paid into escrow prior to December 31, 2026, with such amounts to be released from escrow as they become due under the ground lease and applied to any amounts payable (including rent) to TTU. Gabel Lease On January 1, 2026, Fermi Water, LLC, a wholly owned subsidiary of the Company, entered into a groundwater lease agreement (the “Gabel Lease”) with Gabel Brothers Partnership, as lessor. The Gabel Lease covers approximately 321.0 acres in Carson County, Texas. The Gabel Lease has an initial term of 30 years, subject to extension so long as operations are conducted on the leased premises without a cessation of more than 12 consecutive months. Lessee has a unilateral right to terminate the Gabel Lease by providing 365 days’ prior written notice to the lessor, together with an additional payment equal to four months of the then-applicable Minimum Annual Royalty upon final payment. The Company has concluded that exercise of the termination option is not reasonably certain; accordingly, the full 30 year contractual term has been used for measurement purposes under ASC 842. The Gabel Lease provides for a minimum annual royalty of $720 in the first year. The minimum annual royalty and royalty rate shall increase by 2.00% per year on each January 1 following commencement of production. Variable royalty payments of three dollars per one thousand gallons of groundwater produced in excess of the volume covered by the Minimum Annual Royalty in a given calendar year are payable by February 1 of the succeeding year. As of March 31, 2026, no variable royalty payments have been made. Upon commencement on January 1, 2026, the Company recognized an operating lease ROU asset and corresponding lease liability of $6,128 each, measured at the present value of future minimum royalty payments discounted using the Company’s incremental borrowing rate of 14.1%. As of March 31, 2026, the ROU asset and lease liability were approximately $6,087 and $6,151, respectively. Sides Lease On January 1, 2026, Fermi Water, LLC, a wholly owned subsidiary of the Company, entered into a groundwater lease agreement (the “Sides Lease”) with Harold Sides, Shirley Sides, Brandon Sides, Angie Sides, Toni Sides, and Jason Sides, as lessors. The Sides Lease covers approximately 2,542 acres across six parcels in Carson County, Texas. The Sides Lease has an initial term of 30 years, subject to extension so long as operations are conducted on the leased premises without a cessation of more than 12 consecutive months. Lessee has a unilateral right to terminate the Sides Lease by providing 365 days’ prior written notice to the lessors, together with an additional payment equal to four months of the then-applicable Minimum Annual Royalty upon final payment. The Company has concluded that exercise of the termination option is not reasonably certain; accordingly, the full 30 year contractual term has been used for measurement purposes under ASC 842. The Sides Lease provides for a minimum annual royalty of $1,800 in the first year. The minimum annual royalty and royalty rate shall increase by 2.00% per year on each January 1 following commencement of production. Variable royalty payments of three dollars per one thousand gallons of groundwater produced in excess of the volume covered by the Minimum Annual Royalty in a given calendar year are payable by February 1 of the succeeding year. As of March 31, 2026, no variable royalty payments have been made. Upon commencement on January 1, 2026, the Company recognized an operating lease ROU asset and corresponding lease liability of $15,320 each, measured at the present value of future minimum royalty payments discounted using the Company’s incremental borrowing rate of 14.1%. As of March 31, 2026, the ROU asset and lease liability were approximately $15,217 and $15,376, respectively. Operating lease costs for the three months ended March 31, 2026 were as follows:
Lease | Financial Statement Classification | Three Months Ended March 31, 2026
TTU | Property, plant, and equipment | $ | 4,209 |
Gabel | General and administrative expenses | 243 |
Sides | General and administrative expenses | 609 |
Total operating lease cost |  | $ | 5,061 |
Supplemental information related to operating leases for the three months ended March 31, 2026 was as follows:
| Three Months Ended March 31, 2026
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 630 |
Operating lease ROU assets obtained in exchange for new lease liabilities (non-cash): |
Gabel Lease | $ | 6,128 |
Sides Lease | 15,320 |
Total | $ | 21,448 |
The future minimum lease payments included in the measurement of the Company’s operating lease liabilities as of March 31, 2026, were as follows:
| March 31, 2026 | December 31, 2025
2026 | $ | 2,322 |  | $ | 432 |
2027 | 4,406 |  | 1,836 |
2028 | 4,889 |  | 2,268 |
2029 | 6,358 |  | 3,684 |
2030 | 6,759 |  | 4,031 |
Thereafter | 1,739,071 |  | 1,649,323 |
Total undiscounted lease payments | 1,763,805 |  | 1,661,574 |
Less: imputed interest | (1,720,091) |  | (1,640,254) |
Present value of lease liabilities | $ | 43,714 |  | $ | 21,320 |
Information relating to the lease term and discount rate for operating leases as of March 31, 2026 were as follows:
| March 31, 2026 | December 31, 2025
Weighted average remaining lease term | 65 years | 99 years
Weighted average discount rate | 15.1 | % | 16.1 | %
MPS Agreement On October 22, 2025, Fermi entered into a master lease agreement (the "MPS Agreement") with Mobile Power Solutions LLC ("MPS") for the lease of seven GE TM2500 Gen 4 mobile power generation units. The MPS Agreement expands the Company's natural gas platform, a key component of Project Matador's initial generation capacity, and is expected to provide flexible, dispatchable power as the project integrates multiple energy sources. The arrangement includes monthly base rent payments extending through 2045. As of March 31, 2026, lease commencement had not occurred for any of the seven units because the contractual preconditions for the Company's pick-up obligation had not been satisfied. Subsequent to quarter end, in April 2026, the Company and MPS entered into an amendment to the MPS Agreement deferring the delivery schedule, with lease commencement now expected to occur in 2027. Refer to Note 9, Subsequent Events, for additional detail. In accordance with ASC 842, the Company has not recognized a right-of-use asset or lease liability related to the MPS Agreement as of March 31, 2026, as the lease has not yet commenced and the Company does not control the TM2500 units. As of March 31, 2026, $35,966 of lease-related payments were paid in advance of lease commencement, consisting of (i) $12,287 in cash and (ii) $23,679 in shares of common stock. The stock portion was settled through the issuance of 1,190,476 shares of common stock at a fair value of $19.89 per share, equal to the closing market price of the Company's common stock on the date of issuance. These payments are reflected within prepaid expenses and other assets on the unaudited condensed consolidated balance sheet and will be reclassified to lease right-of-use assets when the lease commences.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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