Construction activity at Fermi America’s high-profile “Project Matador” site near Amarillo has been temporarily paused as the company awaits final environmental permitting from state regulators, according to a confirmation issued Friday morning.
The pause comes as Fermi America continues to seek approval from the Texas Commission on Environmental Quality (TCEQ) for air quality permits related to the planned development, which is expected to become one of the world’s largest artificial intelligence data center campuses.
In a statement released Friday, Fermi America Co-Founder and CEO Toby Neugebauer said the decision to pause construction was made proactively while the company completes the permitting process.
“Construction at the Project Matador site has been happening at Fermi speed,” Neugebauer said. “We completed our first phase so fast that we paused construction temporarily because we didn’t want to risk getting a speeding ticket from TCEQ while awaiting our final Clean Air Permit.”
Neugebauer added that the company plans to resume work quickly once approvals are in place.
“We had an incredible 150 days and plan to complete the next phase even faster,” he said.
Permitting Process Continues
The Texas Commission on Environmental Quality previously held a public meeting in December 2025 regarding Fermi America’s potential air quality permits. Those permits would authorize construction of a power generation facility tied to the Project Matador site, which is located approximately 15 miles northeast of Amarillo along U.S. Highway 60.
The public meeting was part of the state’s standard review process, which allows residents and stakeholders to learn about proposed projects and submit comments related to environmental impacts, emissions, and regulatory compliance. As of Friday, Fermi America indicated it is still awaiting final approval of the Clean Air Permit before resuming construction.
Company officials have not indicated a timeline for when a decision from TCEQ may be expected, and state regulators have not publicly commented on the status of the permit review beyond previously scheduled meetings.
Project Matador’s Scope and Vision
As previously reported by MyHighplains.com, Project Matador is designed to be a massive artificial intelligence data center complex capable of powering and processing vast amounts of digital information. The project has drawn attention both locally and nationally due to its scale and its proposed approach to energy generation.
Earlier reports noted that the facility aims to reach a capacity of 11 gigawatts and would manage its own electricity supply through a private system rather than drawing power from the regional electrical grid. Fermi America has stated that the project is expected to rely on a mix of natural gas, solar energy, and wind power, with plans to incorporate nuclear energy in later phases.
In addition to power generation, the project is expected to include proprietary energy management and cooling systems designed to maintain efficiency while operating around the clock. Such systems are considered critical for large-scale AI computing, which generates significant heat and requires consistent, reliable power to avoid interruptions.
Supporters of the project have cited potential economic development benefits, including construction activity, long-term operations jobs, and infrastructure investment in the Texas Panhandle. At the same time, the project’s size and energy demands have prompted regulatory scrutiny and public interest as permitting moves forward.
Financial Developments and Tenant Agreements
While permitting remains a key step for the project, Fermi America has also navigated recent changes related to financing and tenant agreements.
On Dec. 12, 2025, Fermi America disclosed that it had lost a $150 million construction agreement after the exclusivity period tied to that agreement expired at midnight on Dec. 9. According to documents filed with the United States Securities and Exchange Commission, the agreement was linked to a non-binding letter of intent announced in September 2025 with an unnamed investment-grade-rated tenant.
Under that letter of intent, the tenant had expressed interest in leasing a portion of the Project Matador site, subject to negotiation and execution of a definitive lease agreement. In November 2025, Fermi announced that the company and the tenant had entered into an Advance in Aid of Construction Agreement (AICA).
Under the AICA, the tenant agreed to advance up to $150 million to fund certain construction costs associated with the project. However, SEC documents indicate that no funds were ever drawn under the agreement.
The exclusivity period tied to the AICA expired on Dec. 9, 2025. According to filings, the tenant subsequently terminated the agreement on Dec. 11 after notifying Fermi America of its decision.
Company Response and Forward Outlook
Despite the expiration of the exclusivity agreement, Fermi America leadership has stated that discussions with other potential tenants are already underway. SEC documents note that the company has commenced conversations with additional prospective tenants for power delivery at the site in 2026.
In a statement issued on Dec. 12, Neugebauer said the company remained confident about Project Matador’s long-term prospects.
“While we remain in active conversation with tenant number one, the tenant exclusivity clause having expired allowed multiple potential 2027 tenants to begin bidding on 2026 power,” Neugebauer said. “We have never felt better about our position and commitment to make the right long-term decisions for our shareholders, the company, and the Panhandle community.”
Company officials have not disclosed the identities of any potential new tenants or provided details on the status of those discussions.
Balancing Scale, Regulation, and Community Impact
Project Matador represents one of the most ambitious technology-driven developments proposed in the Texas Panhandle in recent years. Its scale places it at the intersection of rapid technological growth, evolving energy strategies, and regulatory oversight.
The temporary pause in construction underscores the importance of environmental permitting and regulatory compliance for projects of this magnitude. While construction has stopped for now, Fermi America has indicated that the pause is procedural rather than a sign of reduced commitment.
As the permitting process continues and tenant discussions evolve, Project Matador remains a closely watched development. Its progress will likely depend on a combination of regulatory approvals, financing arrangements, and market demand for large-scale AI computing infrastructure.
