AMARILLO, Texas (KFDA) – The Amarillo City Council has approved the first reading of an agreement with Fermi America to sell water for an energy and artificial intelligence operation coming to Carson County.
Fermi America presented ambitious plans for a massive nuclear facility adjacent to Pantex during tonight’s city council meeting, outlining a comprehensive water usage agreement that could reshape the region’s infrastructure.
Fermi’s leadership team, including the co-founder and CEO, community liaison, and chief nuclear officer, joined Texas Tech officials for a three-hour presentation to the council.
The proposed facility would feature four nuclear reactors, a natural gas electricity plant, solar panels, and super data processing computers.
Water Infrastructure Investment
Under the proposed agreement, Fermi would pay twice the normal price for city water and commit to significant infrastructure improvements. The company would fund two new wells in the Carson County well field, along with transmission pipelines and a backup generator for pump stations.
The water delivery agreement calls for a maximum of 2.5 million gallons per day over an initial 20-year term, with potential for increases later. The 20-year term would begin upon project execution.
Aquifer Impact Analysis
During the presentation, officials addressed concerns about water usage from the local aquifer. “This is water being pumped out of the aquifer, 1.1 trillion,” said Mayor Cole Stanley. “If you ramp up Fermi all the way to 10 MGD, million gallons per day, and I know that sounds like a lot, that’s 3.6 billion per year. So what would they use out of the total 1.1 trillion, .32 percent.”
Supporters emphasized the project’s self-sufficiency and regional benefits. “Fermi is going to build their own power; they’re producing their own power, they’re not going to use, overuse the Ogallala Aquifer,” said Trent Sisemore, community lead for Fermi America. “This is going to be a wonderful thing for Amarillo, and it’s going to be transformational.”
The agreement would be subject to water use restrictions from the city’s drought contingency plan.
City Benefits and Timeline
Fermi would design, construct, and pay for all water infrastructure improvements, with all enhancements dedicated to the city upon completion. The company has committed to finishing the work by January 2027.
Council members spent considerable time questioning Fermi representatives about water usage, infrastructure impacts, and transparency measures during the lengthy presentation.
Tonight’s session marked the first reading of the proposed agreement. City staff will now review and modify the terms before bringing the revised agreement back to council at the next meeting.
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