When the Amarillo City Council met this week to discuss a proposed water supply agreement with Fermi America, the conversation quickly turned to one of the Texas Panhandle’s most precious — and limited — resources: water.
At the center of the debate is Fermi’s plan to build what’s being called the largest data center in the world next to the Pantex Plant in Carson County. The project promises economic growth, cutting-edge technology, and hundreds of jobs. But it also brings an unavoidable question: how much water will it take to keep such a massive operation running, and what will that mean for the Ogallala Aquifer, the lifeblood of the High Plains?
This issue isn’t just about one company or one deal. It’s about how Amarillo — and much of the rural Southwest — balances growth with sustainability in a region where every drop of water counts.
Understanding the Proposal
During Tuesday’s City Council meeting, Fermi officials outlined their initial plans. The company is asking for an allocation of 2.5 million gallons of water per day to start construction and support the first phase of its operations. That figure could increase as the facility expands, potentially reaching 10 million gallons per day, according to public documents.
To put that in perspective, 2.5 million gallons a day equals roughly the daily water use of several thousand Amarillo households combined. That kind of scale is what’s sparked concern among residents and environmental groups.
Fermi’s Community Liaison, Trent Sizemore, sought to reassure both the council and the public that the project would operate within strict limits.
“Fermi will use water, but I’m not worried about any adverse effects on the panhandle of Texas through their water use,” Sizemore said. “The Ogallala Aquifer is huge, and farming will use water, but no more than anyone else, because you can only use one acre-foot of water per year. It’s under the water district regulations.”
An acre-foot is about 325,851 gallons — roughly enough water to supply two or three average homes for a year. Under current groundwater district rules, both farmers and industrial users are limited to pumping one acre-foot per acre annually. Sizemore said Fermi would follow those same regulations.
He also emphasized that the company plans to rely heavily on water recycling and efficiency technologies.
“Once the water is in there, it’s continually recycled and used again,” he explained. “If the nuclear part comes it’ll be probably a hybrid with only 15% water, 85% air, and that water is reused over and over and over again. Some of it goes away in steam, but most of the water’s left, and it’s the same situation. Probably 1% gets lost in those cycles in nuclear cooling.”
The company, he said, is exploring the use of treated wastewater, saltwater, or effluent water rather than fresh groundwater, which could reduce the strain on the Ogallala.
The Concerns: A Finite Resource
Still, for many residents and environmental advocates, the numbers are difficult to ignore.
Will Masters, director of Ogallala Life, pointed out that the company’s potential water demand could be as much as 20% of Amarillo’s current daily usage.
“I don’t think they know, which I think is one of the big problems in other parts of the world,” Masters said. “Other data centers have used a lot of water. The letter of intent that became public from the city of Amarillo showed they were hoping to buy two and a half million gallons of water a day from the city, and up to 10 million gallons of water a day. That’s a lot of water.”
Masters’ concerns reflect a broader anxiety about the Ogallala Aquifer’s long-term health. Stretching from Texas to South Dakota, the aquifer supplies drinking water and irrigation for millions of people. But in the Texas Panhandle, parts of it are already severely depleted. Unlike rivers or lakes, the Ogallala replenishes very slowly — in some places, the recharge rate is so low that once the water is gone, it could take centuries to return.
For that reason, Masters said, the city should take a cautious approach.
“The biggest risk is, whenever it stops raining for a few years, this city has to, well, get desperate to deliver water to its residents,” he said. “What I’m worried about is my child’s ability to live here in 20 years.”
That concern resonates deeply in Amarillo, where drought cycles are part of life. Every few years, the city is reminded just how fragile its water supply can be.
The City’s Position: Infrastructure and Transparency
City officials say the proposed water supply agreement includes important safeguards. Fermi would build and pay for its own water infrastructure, including wells, pipelines, and connections. Those assets would eventually be turned over to the city, strengthening Amarillo’s overall system.
The agreement passed its first reading on Tuesday and is scheduled for a second and possible final vote on Oct. 28.
Meanwhile, the city launched a dedicated webpage to share details about its discussions with Fermi America. The site is designed to provide transparency and help residents understand Amarillo’s role in the project.
According to the city:
“While this is not a City of Amarillo project, the City has engaged in discussions regarding infrastructure and utility services that may support the development.”
That distinction — between being a partner and being a facilitator — is an important one. Amarillo isn’t funding the project or directly managing it, but the city’s involvement in utilities like water makes it a key stakeholder.
Balancing Economic Opportunity and Environmental Responsibility
From one angle, Fermi America’s proposal represents a huge economic opportunity for Amarillo and the region. The facility would bring high-paying tech jobs, strengthen Amarillo’s position as a center for AI and computing, and attract new infrastructure investment to the Panhandle.
But from another angle, it also challenges the city to think carefully about resource management and long-term sustainability.
Water-intensive industries — whether agriculture, manufacturing, or data centers — all depend on the same underground supply. As populations grow and climate patterns shift, competition for that water will only increase.
That’s why many local residents are calling for clearer impact assessments, independent hydrological studies, and public input before final approval. The city’s new transparency website is a step in the right direction, but citizens want to see detailed data about exactly where the water will come from and how much will be used.
The Broader Context: Data Centers and Water
Amarillo isn’t the only place wrestling with these questions. Across the U.S., data centers — which power the internet, cloud computing, and artificial intelligence — are expanding rapidly. These facilities require enormous amounts of electricity and cooling water to keep their servers from overheating.
In drier regions like Arizona, Nevada, and Texas, that demand has sparked growing debates about sustainability. Some companies have begun using air cooling, reclaimed wastewater, or closed-loop systems to reduce water consumption — technologies that Fermi says it plans to adopt.
But even with such measures, large-scale operations still represent a significant new layer of demand in already-stressed water systems.
A Common-Sense Path Forward
It’s easy to see both sides of the issue. Amarillo wants growth, investment, and jobs — all of which the Fermi America project could deliver. At the same time, residents want assurance that development won’t jeopardize the water supply that sustains homes, farms, and communities across the Panhandle.
A common-sense approach might look like this:
Independent Review: Before final approval, Amarillo should commission a third-party water impact assessment to verify Fermi’s projections.
Public Transparency: Regularly publish water usage data and efficiency progress once the facility begins operating.
Water Recycling Commitment: Require that Fermi meet specific recycling and reuse benchmarks, using treated or non-potable water wherever possible.
Periodic Review: Set intervals (for example, every five years) where the agreement can be reevaluated based on actual water availability and aquifer data.
Community Investment: Encourage Fermi to fund local water conservation initiatives, such as aquifer monitoring, public education, or irrigation efficiency programs.
These steps wouldn’t just protect Amarillo’s water — they’d also build public trust and ensure that growth aligns with long-term sustainability.
Looking Ahead
As Amarillo prepares for the Oct. 28 vote, residents and officials alike face a defining choice. The Fermi America data center represents the future of high-tech industry — but it also tests how communities in the Texas Panhandle will manage their most critical natural resource.
Water, after all, isn’t just a commodity. It’s a foundation — for families, for farms, for business, and for the generations who will call Amarillo home long after today’s debates have passed.
