Fermi, which operates as Fermi America, has signed a framework agreement with Hillcore Energy Capital for an approximately 2.6GW power complex at its Project Matador campus in Carson County, Texas.
Under the arrangement, Hillcore will finance, construct, own and operate the facility, to be known as the Hillcore Power Center, using a Build-Own-Operate-Transfer (BOOT) structure.
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The complex is planned to include around 2.5GW of natural gas-fired generation, built in phases, alongside roughly 100MW of solar generation and battery energy storage systems (BESS).
Work on the first power block of about 350MW, is due to start once definitive agreements are executed. The companies are targeting first power within 24 months of notice to proceed.
Hillcore and its partners will fund and hold the plant on their own balance sheets, meaning Fermi takes on no upfront capital expenditure.
Fermi will buy power only as customer leases are signed, on terms matched to each lease, with fuel costs passed through.
Construction, operating and performance risk will rest with Hillcore. Fermi has an option to buy the facility after ten years at fair market value.
The build is intended to run alongside Fermi’s Main Campus generation programme, taking on-site capacity at Project Matador to about 4.8GW.
Fermi said the alliance doubles its power to market over roughly the next 30 months.
Fermi co-president and chief operating officer Jacobo 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.”
Hillcore president Russell Negus said: “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 programme at Project Matador.”
The parties plan to finalise outstanding agreements and obtain necessary approvals before commencing full-scale work.
Project Matador, set in the Texas Panhandle, is promoted by Fermi America as a large-scale energy and AI campus.
The site, which is either secured or under long-term lease, has seen more than $1.5bn invested so far.
Fermi expects to scale the project, subject to binding customer agreements, to around 17GW, with future growth matched to commercial demand.
