Amarillo advances 2.5M-gallon water deal with Fermi America after marathon public hearing

The Amarillo City Council voted 5–0 on Oct. 14 to approve on first reading a proposed 20‑year water supply agreement that would allow Fermi America to receive up to 2.5 million gallons per day (MGD) from the city’s system while Fermi pays for wells, pipelines and required improvements.

Supporters called the project a generational economic opportunity; opponents warned it could hasten decline of the Ogallala Aquifer and sideline local oversight. Nearly two hours of public comment before the vote drew dozens of Amarillo and Panhandle residents who pressed the council for more public review and clearer limits.

Why it matters: Fermi’s Project Matador would combine large-scale power generation and data-center capacity next to the Pantex site and Texas Tech property. The city’s decision to sell potable water is consequential because regional groundwater is already under long-term drawdown; residents repeatedly asked whether the city would be trading a scarce public resource for private gain.

What the agreement does: Under the draft contract the council advanced, Fermi will fund and build the public improvements necessary for delivery — including drilling new wells in…