Fermi America has struck a deal with Hillcore Energy Capital to develop a 2.6GW natural gas-anchored power plant in support of its sprawling Project Matador campus in Carson County, Texas, while simultaneously installing new executive leadership as the company pivots from planning to construction.

The Power Agreement

Under the terms of the agreement, Hillcore will finance, build, own, and operate what the two companies are calling the Hillcore Power Center.

The facility will comprise 2.5GW of natural gas-fired generation, developed in phases, along with approximately 100 MW of combined 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 a notice to proceed.

Jacobo Ortiz, Fermi co-president and COO, framed the arrangement as a faster path to capacity than constructing the generation assets independently.

"Power is the gating asset for AI, and this alliance brings gigawatts to our customers faster than any self-build path in the market," Ortiz said.

"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, said the structure made the project immediately financeable.

Hillcore is working alongside JV Driver on execution. "We intend to deliver first power within 24 months of notice to proceed and to stand behind this plant for decades," Negus said.

Project Matador's Scale and Status

Project Matador is a planned data center and energy campus located near Amarillo, Texas, on land owned by the Texas Tech University system.

When first announced, the campus was described as having a planned capacity of 11GW. Fermi raised that figure to 17 GW in March 2026.

If fully realized, the campus would span 18 million square feet and draw on a combination of on-site energy sources, including natural gas, solar, wind, and nuclear power.

Fermi said this week that Project Matador is "well underway," with approximately 6 GW of the planned 17 GW already permitted and more than USD 1.5 billion invested in the buildout to date. The company is targeting first power in 2026.

The campus has not been without turbulence. Fermi previously disclosed a non-binding letter of intent with an unnamed investment-grade tenant to serve as the first customer at the site, but that company later withdrew from the deal.

The withdrawal led to a class action lawsuit against Fermi.

Earlier this week, however, the company announced a binding lease agreement with AI cloud provider TensorWave for up to 650 MW of data center capacity at Project Matador.

That deal supports an initial 222MW of capacity beginning in the second half of 2027, with expansion rights covering two additional data centers totaling 650MW in aggregate.

Company Background and Financials

Fermi America was founded in January 2025 by former Texas governor and energy secretary Rick Perry and Toby Neugebauer. Despite having no data centers in operation and relatively limited sector experience within its executive team, the company raised USD 682 million in an October IPO that valued the business at USD 15 billion.

The company's financial footing and leadership continuity have both been subjects of scrutiny. In April, Neugebauer, who had served as CEO and co-founder, departed the company along with Miles Everson, the CFO at the time.

Both men remain on the company's board of directors.