Fermi Inc. signed a framework agreement with Hillcore Energy Capital to develop a 2.6 GW power complex at Project Matador under a Build-Own-Operate-Transfer structure. The alliance doubles Fermi's power to market to 4.8 GW over roughly 30 months with no upfront capital expenditure by Fermi.
Fermi signed a framework agreement with Hillcore Energy Capital to add 2.6 GW of power at its Project Matador AI campus, doubling capacity to 4.8 GW.
"Power is the gating asset for AI, and this alliance brings gigawatts to our customers faster than any self-build path in the market," Jacobo Ortiz, Fermi Co-President and Chief Operating Officer, 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."
The Hillcore Power Center will comprise approximately 2.5 GW of natural gas-fired generation developed in phases, plus 100 MW of solar generation and battery energy storage. Construction of the first 350 MW block begins on execution of definitive agreements, with first power targeted within 24 months of notice to proceed. Under the Build-Own-Operate-Transfer structure, Hillcore and its partners finance, build, own and operate the facility on their balance sheets, with Fermi purchasing power only as customer leases are signed and fuel costs passed through.
Fermi holds a 10-year option to acquire the facility at fair market value. The alliance brings the Project Matador campus to approximately 4.8 GW of on-site power over roughly 30 months, years faster than a self-build path, according to the company. Project Matador, with more than $1.5 billion invested to date, is expected to ramp to approximately 17 GW subject to binding customer agreements.
"This is the long-duration infrastructure Hillcore was built for," Russell Negus, President at Hillcore Energy Capital Corporation, 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."
Hillcore Group is a Canadian private investment firm with more than $6 billion in assets under management. JV Driver Group brings over three decades of major-project delivery across natural gas, steam, biomass, and power boiler facilities.
The announcement follows Fermi's first binding customer lease at Project Matador, signed Aug. 10 with AI cloud provider TensorWave for 222 MW of facility power representing approximately $6.5 billion in contracted revenue over 15 years. Fermi shares traded at $7.13, up 0.14 percent, with volume at 3.2 times the average.
The framework agreement requires finalization of constituent agreements and customary approvals, with construction of the first 350 MW block contingent on definitive documents. Investors will watch for the execution of those agreements and additional customer leases at Project Matador, which would advance the campus's 17 GW roadmap.
This article is for informational purposes only and does not constitute investment advice.
