Fermi America taps Hillcore for 2.6GW gas plant to power up to 17GW Project Matador in Texas

Fermi America has signed a deal with Hillcore Energy Capital to develop a 2.6GW natural gas-anchored power plant that will feed its massive Project Matador data center and energy campus in Carson County, Texas. The agreement marks a significant step for the company, which is racing to deliver power to what could become one of the largest AI data center campuses in the United States.

Under the terms of the agreement, Hillcore will finance, build, own, and operate the Hillcore Power Center, which will comprise 2.5GW of natural gas-fired generation developed in phases, along with approximately 100MW of solar generation and battery energy storage. Construction of the first power block, totaling 350MW, will commence upon the execution of definitive agreements, with first power at the site targeted within 24 months of notice to proceed.

The partnership is designed to accelerate Fermi's timeline to deliver dedicated, behind-the-meter power to tenants at Project Matador, a sprawling campus near Amarillo on land owned by the Texas Tech University system. Originally announced with a planned 11GW of capacity, Fermi increased the figure to 17GW in March 2026. If fully realized, the campus will span 18 million sq ft and would draw on a combination of on-site energy sources, including natural gas, solar, wind, and nuclear energy.

"Power is the gating asset for AI, and this alliance brings gigawatts to our customers faster than any self-build path in the market," said Jacobo Ortiz, Fermi co-president and COO. "Hillcore finances, builds, and operates the plant; Fermi delivers dedicated, behind-the-meter power matched to every tenant lease, with our balance sheet intact and a clear path to owning the asset."

Russell Negus, president at Hillcore Energy Capital Corporation, added: "This is the long-duration infrastructure Hillcore was built for. Backed by Hillcore and our partners' capital platform, and JV Driver's execution capabilities, we intend to deliver first power within 24 months of notice to proceed and to stand behind this plant for decades. Fermi's customer demand and the strategic alliance structure make the Hillcore Power Center immediately financeable, and we're proud to anchor this power program at Project Matador."

The deal comes amid a flurry of activity for Fermi, which was founded in January 2025 by former Texas governor and energy secretary Rick Perry and Toby Neugebauer. Earlier this week, the company signed a binding lease agreement with AI cloud provider TensorWave for up to 650MW of data center capacity at Project Matador. That agreement supports an initial 222MW of capacity beginning in the second half of 2027, with expansion rights for two additional data centers totaling 650MW.

Fermi's trajectory has not been without setbacks. Last year, a non-binding letter of intent with an unnamed investment-grade tenant fell through, leading to a class action lawsuit. The company has also faced scrutiny over its lack of operating data centers and limited sector experience within its executive team. Despite these challenges, Fermi raised $682m in an October IPO that valued the business at $15 billion. To date, the company says more than $1.5bn has been invested in Project Matador, with approximately 6GW of the planned 17GW already permitted and first power targeted for 2026.

In leadership news, Fermi has appointed Lee McIntire, an independent board member, as its new CEO. McIntire previously held CEO positions at CH2M Hill and TerraPower, the advanced nuclear firm backed by Bill Gates. He takes the helm following the April departure of CEO and co-founder Toby Neugebauer and CFO Miles Everson, both of whom remain on the board.

"Fermi's next chapter is a construction and power delivery story, and we believe Lee is the ideal executive to lead Fermi through that process," said Marius Haas, Fermi's chairman. "The job now is to build on schedule, on budget, and safely. Lee has spent 40 years delivering exactly this kind of large, complex project. He also knows Fermi from the inside, having served on our board through our latest period of growth, and he brings a reputation for integrity that Fermi's customers, employees, regulators, and neighbors can rely on."

The Hillcore agreement and new leadership appointment signal Fermi's intensified push to move from planning to execution. With power delivery emerging as the critical bottleneck for AI infrastructure development, the company's ability to secure dedicated generation and bring it online quickly will likely determine whether Project Matador can fulfill its ambitious vision.