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Fermi rents its firm power: Hillcore to own the 2.6GW plant behind Project Matador
Fermi America has handed financing, construction, ownership and operation of its anchor gas plant to Hillcore Energy Capital. The gating asset for AI is being outsourced.
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What happened
- Fermi America signed a deal with Hillcore Energy Capital to develop a 2.6GW natural gas-anchored power plant that will feed a planned up to 17GW data center and energy campus called Project Matador in Carson County, Texas.
- Under the agreement, Hillcore will finance, build, own and operate the Hillcore Power Center, comprising 2.5GW of natural gas-fired generation developed in phases together with approximately 100MW of solar generation and battery energy storage.
- Construction of the first power block, totalling 350MW, will commence upon execution of definitive agreements; first power at the site is slated within 24 months of notice to proceed.
- Fermi co-president and COO Jacobo Ortiz said: "Power is the gating asset for AI, and this alliance brings gigawatts to our customers faster than any self-build path in the market... 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 this is the long-duration infrastructure Hillcore was built for, that with JV Driver's execution capabilities they intend to deliver first power within 24 months of notice to proceed and to stand behind the plant for decades, and that Fermi's customer demand and the strategic alliance structure make the Hillcore Power Center "immediately financeable."
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- [1]
Fermi America signed a deal with Hillcore Energy Capital to develop a 2.6GW natural gas-anchored power plant that will feed a planned up to 17GW data center and energy campus called Project Matador in Carson County, Texas.
ReportedView cited source - [2]
Under the agreement, Hillcore will finance, build, own and operate the Hillcore Power Center, comprising 2.5GW of natural gas-fired generation developed in phases together with approximately 100MW of solar generation and battery energy storage.
ReportedView cited source - [3]
Construction of the first power block, totalling 350MW, will commence upon execution of definitive agreements; first power at the site is slated within 24 months of notice to proceed.
ReportedView cited source - [4]
Fermi co-president and COO Jacobo Ortiz said: "Power is the gating asset for AI, and this alliance brings gigawatts to our customers faster than any self-build path in the market... 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."
- [5]
Russell Negus, president at Hillcore Energy Capital Corporation, said this is the long-duration infrastructure Hillcore was built for, that with JV Driver's execution capabilities they intend to deliver first power within 24 months of notice to proceed and to stand behind the plant for decades, and that Fermi's customer demand and the strategic alliance structure make the Hillcore Power Center "immediately financeable."
- [6]
Fermi was founded in January 2025 by former Texas governor and energy secretary Rick Perry and Toby Neugebauer.
ReportedView cited source
Sources & coverage · 1 publisher
The reporting this story was synthesized from, earliest first. Every link goes to the original.
- datacenterdynamics.comAug 13Fermi taps Hillcore to construct 2.6GW gas plant for up to 11GW Project Matador in Amarillo, Texas
Additional citations
- Jacobo Ortiz, Fermi co-president and COO
- Russell Negus, president, Hillcore Energy Capital Corporation
- Fermi
- Marius Haas, chairman of Fermi's board
