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In Amarillo, a conversation that bridges technology, economics, and environmental stewardship is unfolding. At the center of it is a proposal by Fermi America, a company planning to build what it claims will be the world’s largest AI data center in the Texas Panhandle. While many residents see potential economic benefits — new jobs, infrastructure investment, and national attention — others are raising serious concerns about what the project might mean for one of the region’s most precious resources: water.
An Amarillo-based group, Panhandle Taxpayers for Transparency, has stepped into the debate, asking pointed questions about whether the city is being fully transparent in its dealings with Fermi America. The group sent a letter to the Amarillo City Council, questioning the legitimacy and scope of what Fermi America has called a “letter of intent” with the city for access to millions of gallons of water per day.
Questions of Authority and Oversight
Michael Ford, a representative of Panhandle Taxpayers for Transparency, voiced his skepticism about the city’s ability to make such commitments. “There’s nothing within the charter that allows the Amarillo Municipal or Utilities department to enter into any kind of, letter of intent or agreement or what have you with, with the,” Ford said, before adding, “I’m sorry, but, you know, I don’t put a whole lot of faith in, in lawyer, analysis. So they’re going to have to eventually answer that to the SEC.”
Ford’s comments reflect a broader concern shared by many Amarillo residents: Who exactly has the authority to promise city resources — especially water — to a private company, and under what conditions? In regions like the Panhandle, where water conservation is a constant issue, that question carries extra weight.
City Officials Clarify: No Binding Agreement Yet
City officials, however, have pushed back on the idea that Amarillo has made any formal commitment. Council member Les Simpson confirmed that a letter of intent exists but emphasized that it is non-binding.
Simpson explained that any official water contract must go through a public approval process. “I have more questions and answers about Fermi,” Simpson said, “and I look forward to being able to answer those questions.”
That openness to scrutiny and inquiry is exactly what groups like Ford’s are asking for — a transparent, community-involved discussion before Amarillo makes a decision that could have decades-long implications.
Councilman Don Tipps also addressed Ford’s letter, stating that the city’s legal filings had been reviewed and found accurate. “After Mr. Ford’s letter, several licensed attorneys have looked at the filing and have deemed it accurate. I will also reiterate, the city has not entered into any binding agreement to sell water to Fermi,” Tipps clarified.
Why Water Is at the Heart of the Debate
Water has long been a defining issue in the Texas Panhandle. With its semi-arid climate and dependence on the Ogallala Aquifer, the area’s economic and ecological stability is closely tied to water management. Agriculture — one of the region’s foundational industries — already places immense pressure on local water resources.
Data centers, particularly those supporting artificial intelligence, are known to consume vast amounts of water for cooling and operations. Depending on their design and energy source, large-scale AI data facilities can use millions of gallons of water daily, primarily for temperature regulation of high-performance computing systems.
That’s where Amarillo residents’ anxiety stems from: Can the city’s water system sustain both agricultural needs and industrial-scale technology operations? And if so, at what cost — both financially and environmentally?
The Need for Public Dialogue
The Amarillo City Council appears to be moving cautiously, at least for now. The first reading of a resolution to authorize a water supply agreement is scheduled for Tuesday’s council meeting, where members are encouraging residents to attend and hear directly from Fermi America.
That meeting may serve as a crucial turning point. On one side, Amarillo has the potential to become a hub for technological innovation and economic diversification — an attractive prospect for a region seeking to expand beyond agriculture and oil. On the other side lies a legitimate concern about transparency, governance, and sustainability.
Mayor Cole Stanley is expected to discuss the matter with the media ahead of Tuesday’s meeting, signaling that city leaders are aware of how significant this decision could be for Amarillo’s future.
Balancing Growth with Responsibility
At its core, this debate isn’t simply about one company or one letter of intent — it’s about how Amarillo wants to grow. Cities across the U.S. are grappling with similar questions as AI and data infrastructure expand: How do you welcome innovation without compromising local resources or public trust?
If Amarillo moves forward with Fermi America, residents will want clear answers to practical questions:
How much water will the data center actually require?
What safeguards will ensure that local water supplies remain secure?
How will the city guarantee transparency and accountability throughout the process?
Transparent governance and community engagement will be essential. The public deserves access to environmental impact data, infrastructure plans, and clear explanations of any legal agreements. Without that, speculation and distrust can easily overshadow even the most promising economic opportunities.
A Moment of Decision
As Amarillo stands on the edge of what could be a transformative project, the call for clarity and accountability is not an obstacle — it’s a sign of civic health. Groups like Panhandle Taxpayers for Transparency, and the Amarillo City Council all play crucial roles in ensuring that decisions about public resources are made in the open, with the community’s input front and center.
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