Fermi America has inked a deal with Hillcore Energy Capital (Hillcore) 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 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, together with approximately 100MW of solar generation and battery energy storage.

Construction of the first power block, which will total 350MW, will commence upon the execution of definitive agreements. First power at the site is slated within 24 months of notice to proceed.

"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 & 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."

"This is the long-duration infrastructure Hillcore was built for," said Russell Negus, president at Hillcore Energy Capital Corporation. "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."

Fermi was founded in January 2025 by former Texas governor and energy secretary Rick Perry and Toby Neugebauer. The company’s Project Matador is a massive 17GW data center and energy campus near Amarillo in Texas on land owned by the Texas Tech University system. The campus was initially announced with planned 11GW of capacity, but Fermi increased the figure to 17GW in March 2026.

If realized, the campus will span 18 million sq ft (1.67 million sqm) and would utilize a combination of on-site energy sources, including natural gas, solar, wind energy, and nuclear energy. Last year, Fermi said that it had signed a non-binding letter of intent with an unnamed “investment grade-rated tenant” to be the first customer at the campus - but that firm later withdrew from the deal, a matter that led to a class action lawsuit.

Earlier this week, it signed a binding lease agreement with AI cloud provider TensorWave for up to 650MW of data center capacity at its Project Matador site in Texas.

According to Fermi, the deal supports an initial 222MW of capacity beginning in the second half of 2027, but includes expansion rights for two additional data centers totaling 650MW.

Currently, Fermi has no data centers in operation and little experience in the sector within its executive team. Despite this, the company raised $682m in an October IPO that valued the business at $15 billion.

This week, Fermi said Project Matador is “well underway,” with approximately 6GW of the planned 17GW already permitted, and more than $1.5bn invested in the buildout to date, with first power targeted for 2026.

Fermi appoints new CEO

In leadership news, Fermi finally announced a new CEO.

Lee McIntire, an independent member of the company’s board, was appointed to the position. McIntire has held CEO positions at CH2M Hill and TerraPower, an advanced nuclear firm backed by Bill Gates.

“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,” Marius Haas, Fermi’s chairman of the board, said in a statement. “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.”

In April, Toby Neugebauer, Fermi’s CEO and co-founder, and Miles Everson, the company’s CFO, departed the company. Both remain on the company’s board.