Fermi Partners With Hillcore to Power Texas AI Infrastructure
Houston, Wednesday, 12 August 2026.
Fermi’s new alliance doubles its Texas AI campus capacity to 4.8 gigawatts without direct capital expenditure, securing crucial energy to meet soaring artificial intelligence computing demand.
A Capital-Efficient Power Play for AI Infrastructure
On August 11, 2026, Fermi Inc. (NASDAQ:FRMI) and Hillcore Energy Capital Corporation announced a framework agreement to develop the ‘Hillcore Power Center’ [1][2]. Located at Fermi’s Project Matador in Carson County, Texas, this ~2.6 gigawatt (GW) power complex will utilize a Build-Own-Operate-Transfer (BOOT) structure [1][2]. This strategic setup allows Fermi to scale its power infrastructure rapidly to meet the needs of massive artificial intelligence workloads without requiring any direct capital outlay, keeping the company’s balance sheet entirely intact [1][2].
Financing and Long-Term Ownership Structure
Under the BOOT framework, Hillcore Energy Capital and its partners will finance, build, and operate the utility plant [1]. In turn, Fermi will deliver dedicated, behind-the-meter power directly matched to each tenant lease [1]. While Hillcore manages the upfront capital and operational risks, Fermi retains a strategic option to acquire the Hillcore Power Center facility at fair market value 10 years after its commissioning, establishing a clear path to long-term asset ownership [1][2].
Inside the 4.8 GW Energy Expansion
The addition of 2.6 GW of capacity will effectively double Fermi’s available power to market to a total of 4.8 GW over the next 30 months, establishing a target completion timeline by February 11, 2029 [1][2]. This implies that Fermi’s pre-existing power to market prior to this alliance stood at 2.2 GW [1]. To achieve the new capacity goals, the Hillcore Power Center will deploy a hybrid energy mix consisting of approximately 2.5 GW of natural gas-fired generation and 100 megawatts (MW) of solar and battery energy storage [1][2].
Phased Construction and Regulatory Timeline
Construction is set to begin with an initial 350 MW power block immediately following the execution of definitive agreements [1][2]. The partners target the delivery of ‘first power’ within 24 months of issuing a formal notice to proceed [1][2]. However, because the companies are currently finalizing constituent agreements and seeking necessary regulatory approvals, the exact start date for this 24-month countdown remains pending [1][alert! ‘definitive agreements and regulatory approvals are still outstanding’].
Scaling Project Matador to Meet Hyperscale Demand
Project Matador, situated in the Texas Panhandle, is a massive technology campus covering an area over 50% the size of Manhattan [1]. With $1.5 billion invested in the site to date, the campus is designed to eventually support up to 17 GW of capacity [1]. This long-term vision relies on an integrated energy mix of natural gas, nuclear power, utility grid connections, solar, and battery storage specifically tailored to support hyperscale AI and advanced computing tenants [1][GPT].
Overcoming the AI Power Bottleneck
As artificial intelligence models grow exponentially, access to continuous electrical power has become the primary gating asset for the industry [1][GPT]. By partnering with Hillcore and leveraging the construction and execution capabilities of JV Driver, Fermi aims to bypass traditional, slower self-build utility paths [1]. This alliance ensures that Fermi can deliver gigawatts of power to its hyperscale customers much faster than standard market timelines allow [1].