Fermi and Hillcore Energy Capital Announce 2.6 Gigawatt Power Strategic Alliance for Project Matador
Rhea-AI Summary
Fermi (NASDAQ/LSE: FRMI) announced a framework agreement with Hillcore Energy Capital to develop the Hillcore Power Center, an approximately 2.6 GW power complex at Fermi’s Project Matador AI campus in Carson County, Texas, under a Build-Own-Operate-Transfer structure.
The facility will include about 2.5 GW of natural gas-fired generation plus 100 MW of solar and battery storage, built in phases. The first 350 MW block is scheduled to start construction upon execution of definitive agreements, with first power targeted within 24 months of notice to proceed.
Hillcore and partners will finance, build, own and operate the plant on their balance sheets, enabling Fermi to add dedicated, behind-the-meter power with no upfront capital outlay, while purchasing power only as customer leases are signed. The alliance is expected to approximately double Fermi’s power to market to 4.8 GW over roughly 30 months and includes a 10-year option for Fermi to acquire the facility at fair market value. Project Matador is planned to scale to about 17 GW, with over $1.5 billion invested to date.
Positive
- 2.6 GW Hillcore Power Center adds large-scale capacity at Project Matador
- Alliance expected to double available power to about 4.8 GW in ~30 months
- BOOT structure provides gigawatt-scale power with no upfront capital expenditure for Fermi
- Fermi holds 10-year option to acquire the facility at fair market value
- Over $1.5 billion already invested in Project Matador buildout to date
Negative
- Agreement is a framework only; definitive contracts and customary approvals are still required
- First power from the initial 350 MW block is only targeted within 24 months of notice to proceed, implying execution and timing risk
- Approximately 2.5 GW of the 2.6 GW complex relies on natural gas-fired generation, concentrating fuel and regulatory exposure in gas assets
News Explained
Fermi has executed a framework agreement for Hillcore to finance, build, own and operate the power center, but definitive agreements and customary approvals remain pending; the structure would add dedicated power without upfront capital expenditure by Fermi.
Market reaction after 2.6 GW power partnership: FRMI +3.88%
Following this news, FRMI has gained 3.88%, reflecting a moderate positive market reaction. Argus tracked a peak move of +1.1% during the session. Our momentum scanner has triggered 32 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $7.40. Trading volume is very high at 3.1x the average, suggesting strong buying interest.
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Key Figures
Previous Partnership Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Strategic partnership | Positive | -2.7% | Partnership with Hyundai E&C to advance Project Matador nuclear energy campus |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The sole tag-specific partnership event was followed by a -2.73% reaction, indicating divergence from the announcement.
Key Terms
build-own-operate-transfer financial
behind-the-meter technical
battery energy storage technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Doubles Fermi power to market to 4.8 gigawatts (GW) over the next ~30 months
Build-Own-Operate-Transfer structure accelerates one of America's largest AI campus power programs - with no capital outlay by Fermi
DALLAS, TX / ACCESS Newswire / August 11, 2026 / Fermi Inc. (NASDAQ:FRMI)(LSE:FRMI), operating as Fermi America™ ("Fermi" or the "Company"), announced the execution of a framework agreement with Hillcore Energy Capital Corporation ("Hillcore") under which Hillcore will finance, build, own and operate the Hillcore Power Center, an approximately 2.6 GW power complex at Fermi's Project Matador campus in Carson County, Texas, under a Build-Own-Operate-Transfer (BOOT) structure. The Hillcore Power Center will comprise approximately 2.5 GW of natural gas-fired generation, developed in phases, together with approximately 100 megawatts (MW) of solar generation and battery energy storage. Construction of the first power block, approximately 350 MW, will begin on execution of definitive agreements, with first power targeted within 24 months of notice to proceed.
Strategic Alliance Summary
Speed to power. The construction of the Hillcore Power Center will run in parallel with Fermi's Main Campus power generation buildout. The strategic alliance is designed to bring the Project Matador campus to approximately 4.8 GW of on-site power years faster than a self-build path - a decisive advantage for AI and hyperscale customers.
Capital-efficient growth. Hillcore and its partners will finance and own the facility on their own balance sheets. Fermi adds gigawatts of dedicated, behind-the-meter power with no upfront capital expenditure.
De-risked commercial structure. Fermi purchases power only as customer leases are signed, on terms matched to each customer's lease, with fuel costs passed through. Construction, operating, and performance risk sit with Hillcore.
Path to ownership. Fermi holds an option to acquire the facility after 10 years at fair market value, preserving long-term ownership upside without committing capital today.
Alignment. Hillcore and its partners bring long-duration private capital and, through affiliates including JV Driver, more than 35 years of heavy-industrial and power-generation experience spanning natural gas, steam, biomass, and power boiler facilities from project development and construction through commissioning and operations.
"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 & Chief Operating Officer. "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."
Next steps will be for the parties to finalize the constituent agreements and obtain customary approvals.
About Fermi's Project Matador
Fermi America is where AI gets power. The Company is developing one of the world's largest advanced energy and AI ecosystems, on an area in the Texas Panhandle that's more than half the size of Manhattan. The site, called Project Matador, is secured or under long-term lease with more than
Investor Contact
Barry Sievert | IR@fermiamerica.com
Media Contact
Fermi Inc. Communications | media@fermiamerica.com
About Fermi America™
Fermi America™ (Nasdaq/LSE:FRMI) develops next-generation private electric grids that deliver highly redundant power at gigawatt scale to support next-generation intelligence and AI compute. Fermi America™ combines cutting-edge technology with a deep bench of proven world-class multi-disciplinary leaders with a combined 25 GW of experience, to create the world's largest, 17 GW next-gen private grid, helping ensure America's energy and AI dominance. The behind-the-meter Project Matador campus is expected to integrate the nation's biggest combined-cycle natural gas project, one of the largest clean, new nuclear power complexes in America, utility grid power, solar power, and battery energy storage, to support hyperscale AI and advanced computing. For additional information visit www.fermiamerica.com.
About Hillcore Group
Hillcore Energy Capital Corporation is an entity owned by Hillcore Group, a Canadian private investment firm with more than
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's commercial strategy, tenant agreements, Project Matador, expected capacity, delivery schedules, financing arrangements, expansion opportunities, market demand, and future operations. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. The Company undertakes no obligation to update any forward-looking statements except as required by law.
SOURCE: Fermi Inc.
View the original press release on ACCESS Newswire