Fermi has signed a framework agreement with Hillcore Energy Capital Corporation to develop a 2.6-gigawatt power complex at Fermi’s Project Matador campus in Carson County, Texas.
Under the agreement announced August 11, 2026, Hillcore will finance, build, own and operate the planned Hillcore Power Center under a Build-Own-Operate-Transfer structure. The facility is planned to provide dedicated, behind-the-meter power to Fermi’s Project Matador campus.
The planned complex will combine approximately 2.5 GW of natural gas-fired generation with about 100 megawatts of solar generation and battery energy storage. The first power block, at approximately 350 MW, is expected to enter construction after the parties execute definitive agreements.
2.6 GW Power Center Planned for Project Matador
The Hillcore Power Center will be developed in phases as part of Fermi’s broader Project Matador campus.
Natural gas will account for most of the planned capacity, with approximately 2.5 GW of generation. Solar generation and battery energy storage will provide the remaining roughly 100 MW.
The first power block will provide approximately 350 MW. Fermi and Hillcore are targeting first power within 24 months after notice to proceed.
The planned facility is intended to supply dedicated power to AI and hyperscale customers at Project Matador as Fermi expands the campus.
Hillcore to Finance, Build and Operate Power Complex
The agreement establishes a Build-Own-Operate-Transfer structure for the planned power center.
Hillcore and its partners would finance and own the facility on their balance sheets and oversee its construction and operation. Fermi would purchase power as customer leases are signed, with the terms matched to individual customer leases.
The structure allows Fermi to add planned power capacity without making an upfront capital expenditure for the Hillcore Power Center.
Fermi would also have an option to acquire the facility after 10 years at fair market value.
First 350 MW Block Moves Toward Construction
The first 350 MW block represents the next major construction step for the power center.
However, the August 11 framework agreement does not mean construction has already begun. Fermi and Hillcore still need to execute definitive agreements and obtain customary approvals before moving to notice to proceed.
Once notice to proceed occurs, the companies are targeting first power within 24 months.
That timeline provides a defined path from the current framework agreement to the first operating generation block, subject to the remaining agreements and approvals.
Power Buildout Could Reach 4.8 GW
The Hillcore agreement forms part of Fermi’s broader plan to expand power capacity at Project Matador.
Fermi says the strategic alliance will bring the campus to approximately 4.8 GW of on-site power. The company says the arrangement will accelerate the campus’s power buildout compared with a self-build approach.
The planned capacity will support the electricity needs of AI and hyperscale customers at the campus.
The Hillcore structure would also place financing, construction, operating and performance risks associated with the power center with Hillcore, while Fermi retains the option to acquire the facility after 10 years.
Natural Gas Makes Up Most Planned Capacity
The Hillcore Power Center will rely primarily on natural gas for its planned generation.
Approximately 2.5 GW of the 2.6 GW complex will come from natural gas-fired generation. Solar generation and battery energy storage will account for approximately 100 MW.
The combination gives Project Matador a primarily gas-fired power source while incorporating solar generation and storage into the same planned power complex.
The August 11 announcement does not provide a construction cost for the Hillcore Power Center.
Project Matador is a massive 17 GW private power and AI data center campus spanning roughly 8,400 acres in Carson County, Texas. The planned “HyperGrid” campus will provide dedicated, behind-the-meter power from natural gas, solar generation and energy storage for large-scale AI workloads.
The campus is also attracting major AI computing commitments. Fermi recently signed a binding lease agreement with AI cloud provider TensorWave for a data center at Project Matador. The first phase will provide 222 MW of facility power beginning in the second half of 2027 and generate approximately $6.5 billion in contracted revenue over 15 years.
The lease also includes expansion rights for two additional data centers, potentially bringing total capacity above 650 MW across three phases. The planned facilities will support tens of thousands of next-generation AMD Instinct GPUs for AI training and inference.
Dedicated Power Becomes Central to AI Campus Development
The agreement places dedicated power infrastructure at the center of Fermi’s strategy for expanding Project Matador.
The approach also reflects the growing connection between large-scale computing development and power availability. For Fermi, the Hillcore arrangement provides a separate financing and ownership structure for a major portion of the campus’s planned generation capacity.
A similar energy-first approach appears in another data center project announced the same day. Alpha Compute has signed a binding term sheet for a planned northern Pennsylvania data center campus that could initially provide 200 MW of power and data center capacity, with potential expansion to 1 GW. That project would use proposed Marcellus natural gas resources and behind-the-meter generation.
While the two projects have different development structures and remain at different stages, both announcements put dedicated power supply at the center of planned AI and data center infrastructure.
Definitive Agreements Remain the Next Step
The Hillcore Power Center remains subject to additional development steps.
Fermi and Hillcore must execute the definitive agreements and obtain customary approvals before the project can proceed to notice to proceed.
The first 350 MW block is then expected to move toward construction, with first power targeted within 24 months after notice to proceed.
The framework agreement therefore represents a significant development milestone, while the project’s next phase depends on completion of the remaining agreements and approvals.
Hillcore Power Center Factsheet
- Project: Hillcore Power Center
- Location: Project Matador, Carson County, Texas
- Announcement: August 11, 2026
- Planned capacity: Approximately 2.6 GW
- Natural gas generation: Approximately 2.5 GW
- Solar and battery energy storage: Approximately 100 MW
- First power block: Approximately 350 MW
- Customer: Fermi
- Power center partner: Hillcore Energy Capital Corporation
- Structure: Build-Own-Operate-Transfer
- Financing and ownership: Hillcore and its partners
- Power model: Dedicated, behind-the-meter supply
- Construction status: Planned; definitive agreements and customary approvals remain
- First power target: Within 24 months after notice to proceed
- Potential Project Matador on-site power: Approximately 4.8 GW
- Fermi acquisition option: After 10 years at fair market value
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