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Storyline · 19 events · Jun 27, 2025 – Jan 2027

City of Amarillo water supply agreement with Fermi America (2025-2026)

Fermi America is developing an energy and data-center campus ("Project Matador") on Texas Tech University System land next to Pantex in Carson County, outside Amarillo city limits. On June 27, 2025 the City issued a letter of intent stating it could deliver 2.5 million gallons per day (MGD) from its Carson County Well Field once pipeline was built. A non-binding MOU (file-dated September 25, 2025) described up to 10 MGD in three phases at 1.5 times or more the in-city rate. The City Council approved a water supply agreement on first reading on October 14, 2025 and, 4-1, on second reading on October 28, 2025, with Councilmember Les Simpson dissenting over the price. The agreement signed October 30, 2025 caps delivery at 2.5 MGD at two times the rate for a like-size connection inside the city, for 20 years with two optional 10-year renewals; Fermi pays for two wells, connecting pipe and pump-station backup generation, to be dedicated to the City by January 2027. At the August 25, 2026 council meeting the City reported Fermi used 310,000 gallons in July 2026. In August 2026 the Foreign-Trade Zones Board approved Subzone 252B for Fermi's site.

A storyline groups dated events in order. It is a chronology, not an argument; it does not say why anything happened. All storylines

Where the story starts depends on the framing

  1. · Origin

    City issues letter of intent on water delivery for the Fermi campus

    In a letter to Parkhill Smith & Cooper, the engineer designing water delivery for the campus, Assistant City Manager Donny Hooper stated the City had current capacity to deliver 2.5 MGD of potable water from its Carson County Well Field once pipeline was built, and anticipated a total of 5.5 MGD by 2026 with developer-built expansion. The letter also addressed a sewer connection to the Northeast Interceptor and possible future effluent supply from the Hollywood Road plant.[1][2]

    Donny HooperGrayson PathFermi America (Fermi, Inc.)Parkhill (formerly Parkhill, Smith & Cooper)

    • ✓ Verified

      In a June 27, 2025 letter of intent to Parkhill Smith & Cooper, the City stated that, upon construction of pipeline infrastructure, it had current capacity to deliver 2.5 million gallons per day of potable water from its Carson County Well Field, and anticipated providing a total of 5.5 MGD by 2026 with future construction by the developer.[1]

      Initial mgd
      2.5
      Anticipated total mgd 2026
      5.5
    • ✓ Verified

      The letter also said the City agreed to facilitate a connection to its Northeast Interceptor for the development's domestic sewer needs (as a sewer tap request) and would explore future agreements to supply effluent from the Hollywood Road Wastewater Treatment Plant, contingent on developer-built infrastructure and an evaluation of the City's available capacity.[1]

    • ✓ Verified

      The letter was signed by Assistant City Manager Donny Hooper and copied to City Manager Grayson Path, the deputy city manager, the city attorney, a managing director and a special advisor. The City posted it on its Fermi project page in November 2025.[1][2]

  2. · Precursor

    City and Fermi America sign a non-binding MOU describing up to 10 MGD

    A non-binding memorandum of understanding stated the parties' intent to explore agreements for the City to provide up to 10 MGD of potable water in three phases between January 2026 and January 2027, at 1.5 times or more the in-city rate for a like-size connection, with Fermi paying for the public improvements. Either party could end it on 60 days' notice.[3][2]

    Grayson PathFermi America (Fermi, Inc.)Parkhill (formerly Parkhill, Smith & Cooper)

    • ✓ Verified

      The non-binding MOU stated the parties' intent to explore agreements for the City to provide up to 10 MGD of potable water in three phases: 2.5 MGD by January 31, 2026; an additional 3.0 MGD by May 31, 2026; and an additional 3.0 to 4.5 MGD by January 31, 2027, each contingent on council-adopted terms and completion of public improvements being designed by Parkhill.[3]

      Max mgd
      10
      Phase1 mgd
      2.5
      Phase2 mgd
      3
      Phase3 max mgd
      4.5
    • ✓ Verified

      The MOU contemplated that the City would furnish water at a rate of 1.5 times or higher the rate it charges a connection of like size within city limits, and that Fermi would design and build all necessary public improvements at its own expense.[3]

      Rate multiple
      1.5
    • ✓ Verified

      The MOU states it is not legally binding, creates no obligation to spend funds or enter a definitive agreement, and that no binding commitment exists until a written contract is adopted by the City Council in a public meeting. Either party could terminate it on 60 days' written notice.[3]

    • ✓ Verified

      The MOU's date is September 25, 2025 according to the City's file name; the text extracted from the posted document shows no legible signature date. The City signatory block is the City Manager, and Fermi's signer is listed as Charlie Hamilton, authorized signer.[3][2]

    • ✓ Verified

      Both the MOU and the final agreement state they do not contemplate any attempt by Fermi to acquire Hollywood Road Wastewater Treatment Plant effluent already allocated to Lake Tanglewood by prior agreement.[3][4]

  3. · Context

    Fermi begins trading on Nasdaq after its initial public offering

    Fermi Inc., an Amarillo-based company co-founded by former Texas Governor Rick Perry, priced its IPO at $21 per share on September 30, 2025, raising $682.5 million, and began trading on Nasdaq under FRMI on October 1, 2025. It described itself as a pre-revenue real estate investment trust developing Project Matador on land leased from the Texas Tech University System.[5][6]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      Fermi priced its initial public offering at $21 per share, selling 32.5 million shares for $682.5 million, and began trading on Nasdaq under the ticker FRMI on October 1, 2025. IPOScoop described it as a pre-revenue real estate investment trust co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry, with a net loss of $6.4 million from its January 2025 inception through June 30, 2025.[5]

      Ipo price
      $21
      Shares
      32,500,000
      Proceeds
      $682,500,000
    • ⚠ Sources differ

      Reported size of the Project Matador site, leased from the Texas Tech University System under a 99-year lease, differs across sources and over time.

      Reported value 1[5][7]

      Acres
      5,236

      Site size reported at the time of the IPO and the October 28, 2025 council meeting.

      Reported value 2[6]

      Acres
      5,769

      Campus size reported in November 2025.

      Reported value 3[8][9]

      Acres
      5,800

      Rounded figure in broadcast and Globe-News coverage.

      Reported value 4[10]

      Acres
      7,570

      About 7,570 acres after adjacent land acquisitions Fermi reported in March 2026 (closed or under contract).

    • ✓ Verified

      Fermi has described the project as up to 11 gigawatts of on-site generation (natural gas, nuclear and solar) and 18 million square feet of data-center capacity; these are company plans and projections.[6][7]

      Planned gw
      11
      Planned sq ft
      18,000,000

  4. · Related development

    Council members respond to questions about Fermi's reported letter of intent

    A nonprofit, Panhandle Taxpayers for Transparency, sent the council a letter questioning Fermi's statement that it had a letter of intent with the City for millions of gallons of water per day. Councilmember Les Simpson said a non-binding letter of intent existed and that any contract required a public council vote; Councilmember Don Tipps said the City had not entered into any binding agreement to sell water to Fermi.[11]

    Les SimpsonDon TippsFermi America (Fermi, Inc.)

    • ✓ Verified

      Panhandle Taxpayers for Transparency, a nonprofit, sent the City Council a letter questioning Fermi's statement that it had a "letter of intent" with the City for "millions of gallons of water per day." Fermi called the group's allegation that it made false statements to the SEC "false" and said it "lack[ed] merit."[11]

    • ✓ Verified

      Don Tipps and Les Simpson, City Councilmembers: Councilmember Don Tipps said "the city has not entered into any binding agreement to sell water to Fermi"; Councilmember Les Simpson said a non-binding letter of intent existed and any formal contract required a public council vote.[11]

  5. · Starting point

    Council approves the Fermi water supply agreement on first reading

    After a presentation by Fermi and Texas Tech officials and public comment, the council voted 5-0 on first reading of a resolution authorizing a water supply agreement for up to 2.5 MGD at twice the normal rate over an initial 20-year term. Mayor Cole Stanley presented figures comparing Fermi's potential use with regional groundwater pumping. Staff were to revise the terms before a second reading.[12][8][2][13]

    Cole StanleyLes SimpsonFermi America (Fermi, Inc.)

    • ✓ Verified

      On October 14, 2025 the council voted 5-0 on first reading of a resolution authorizing a water supply agreement with Fermi; a second reading was scheduled two weeks later.[8][12]

      Votes for
      5
      Votes against
      0
    • ✓ Verified

      As presented on first reading, Fermi would pay twice the normal City water rate and fund two new wells in the Carson County well field, transmission pipelines and a backup generator for pump stations, dedicated to the City on completion by January 2027, for a maximum of 2.5 MGD over an initial 20-year term subject to the City's drought contingency plan.[12]

      Max mgd
      2.5
      Term years
      20
      Rate multiple
      2
    • ✓ Verified

      Cole Stanley, Mayor: Mayor Cole Stanley cited about 1.1 trillion gallons a year pumped from the aquifer in the region and said that 10 MGD (about 3.6 billion gallons a year) would be about 0.32% of that total.[12][13]

      Regional pumping gallons
      1,100,000,000,000
      At 10 mgd gallons per year
      3,600,000,000
      Share
      0.32%
    • ✓ Verified

      Cole Stanley, Mayor: Mayor Stanley said: "We'll charge them more than a regular customer because they're outside the city."[8]

    • ✓ Verified

      ABC 7 and The Texas Tribune reported Amarillo's average daily water use at 40 to 50 million gallons, and that Fermi planned to use 2.5 to 5.5 million gallons per day of potable and municipal graywater for the site.[8]

      City avg daily low gallons
      40,000,000
      City avg daily high gallons
      50,000,000
    • ✓ Verified

      Les Simpson, City Councilmember (Place 4): Councilmember Les Simpson said he left an end-of-September executive session understanding the item would not be on the October 14 agenda.[13]

    • ✓ Verified

      City of Amarillo: The City's Fermi project page states the City has adequate water resources to meet Fermi's proposed usage without affecting the community's water supply or triggering changes to existing drought contingency plans, that the agreement will not affect residential water rates, and that revenue will go to the Water and Sewer Fund.[2]

  6. · Context

    Councilmember Prescott publishes water-use calculations for the Fermi agreement

    Councilmember David Prescott shared calculations based on Texas Water Development Board data comparing Fermi's potential use at 2.5 to 10 MGD with Carson County and regional water use.[14]

    David PrescottFermi America (Fermi, Inc.)

    • ✓ Verified

      David Prescott, City Councilmember (Place 3): Using Texas Water Development Board data, Councilmember David Prescott calculated that 2.5 MGD (about 912.5 million gallons a year) would be about 2.5% of Carson County's annual water use of about 112,500 acre-feet, and 10 MGD about 10%; against about 1.1 trillion gallons for 26 Panhandle counties he put the shares at about 0.08% and 0.33%. These are his calculations.[14]

      Carson county acre feet
      112,500
      Share at 2 5 mgd
      2.49%
      Share at 10 mgd
      10%
    • ✓ Verified

      David Prescott, City Councilmember (Place 3): Prescott said selling 10 MGD would stay within Panhandle Groundwater Conservation District limits and could bring $32 million into the city (his estimate).[14]

      Estimated revenue
      $32,000,000

  7. · Peak

    Council approves the Fermi water supply agreement 4-1 on second reading

    The council voted 4-1 to authorize the agreement, with Councilmember Les Simpson voting no. Simpson said he supported the project but that the City should have negotiated a higher rate. The agreement text was not in the posted agenda packet; Mayor Stanley said it was still a draft under negotiation when the agenda was posted.[7][13][9][15]

    Cole StanleyLes SimpsonDavid PrescottTim ReidDon TippsFermi America (Fermi, Inc.)

    • ✓ Verified

      On October 28, 2025 the council voted 4-1 on second and final reading to authorize the water supply agreement; Councilmember Les Simpson voted no.[7][13][9]

      Votes for
      4
      Votes against
      1
    • ⚠ Sources differ

      Sources describe the base against which Fermi's doubled rate is measured differently.

      Reported value 1[4]

      Rate multiple
      2
      Base
      a connection of like size within city limits

      Contract text (Section 6.01).

      Reported value 2[7]

      Rate multiple
      2
      Base
      a commercial water user inside city limits

      Agenda memo as reported by the Amarillo Tribune.

      Reported value 3[13]

      Rate multiple
      2
      Base
      other industries

      ABC 7 report.

      Reported value 4[9]

      Rate per 1000 gallons
      $9

      Globe-News: $8.72 per 1,000 gallons, which it described as the highest industrial rate in city history.

      Reported value 5[15]

      Rate multiple
      2
      Base
      the rate charged to Amarillo taxpayers

      Fermi's press release.

    • ✓ Verified

      Les Simpson, City Councilmember (Place 4): Simpson said, "I support Fermi and hope they're successful," and "We should've negotiated a better rate." He said Fermi did not push back on the two-times rate; ABC 7 reported he suggested proposing a rate five times higher. He cited a reported $100 million a year to Texas Tech for use of its land and asked "what are Amarillo citizens receiving for their water?"[9][13][7]

    • ✓ Verified

      Cole Stanley, Mayor: Mayor Stanley said, "We're negotiating a very good water deal for what is a small amount of water," and that the City already sells roughly 8 million gallons a day to Xcel Energy and about 3 million to Producer Owned Beef.[9][13]

    • ✓ Verified

      David Prescott and Tim Reid, City Councilmembers: Councilmember David Prescott said that if the council felt it was short in value, "we do that at the 5.5"; Councilmember Tim Reid called this the first phase and said negotiation would begin as Fermi's water needs grow. The Tribune reported the City and Fermi anticipated Fermi returning in about six months to request 5.5 MGD.[7]

    • ✓ Verified

      Cole Stanley, Mayor (explanation): The agreement itself was not included in the posted agenda; Mayor Stanley said it was a draft still under negotiation when the agenda was posted. The City later posted the agreement on its website.[7][9]

    • ✓ Verified

      Toby Neugebauer and Trent Sisemore, Fermi America: Asked by Simpson why Fermi came to the City, Fermi CEO Toby Neugebauer said: "we can pay more for water than the consumer can, which allows you all capital to be able to reinvest into other water projects." Fermi community lead Trent Sisemore said the company was paying the highest rate anyone had paid the City for water.[7][9][13]

    • ✓ Verified

      Trent Sisemore (Fermi America); Cole Stanley, Mayor: Sisemore said Fermi will follow Panhandle Groundwater Conservation District limits of one acre-foot per acre per year. Stanley said statewide conservation policy falls to the Texas Water Development Board, not the City.[9]

    • ✓ Verified

      Fermi America: Fermi has projected that hybrid air-and-water cooling for four AP1000 reactors would consume an estimated 13.2 million gallons a day in total, and has said it does not anticipate needing more than 27.5 MGD (company projections).[7][6]

      Projected cooling mgd
      13.2
      Projected max mgd
      27.5
    • ✓ Verified

      Fermi America: Fermi's October 29, 2025 press release described a 20-year agreement for up to 2.5 MGD and said a non-binding MOU allows scaling up to 10 MGD in later phases.[15]

    • ✓ Verified

      The coverage of the October 14 and October 28, 2025 votes reviewed for this record reports discussion of Ogallala Aquifer pumping, Panhandle Groundwater Conservation District limits and the City's existing sales to Xcel Energy and Producer Owned Beef, but does not report discussion of the Canadian River Municipal Water Authority (CRMWA) supply.[7][9][12][2]

  8. · Resolution

    City and Fermi, Inc. sign the water supply agreement

    The executed agreement caps delivery at 2.5 MGD from the City's Carson County Well Field, at two times the rate for a like-size connection inside city limits, adjusted annually. The term is 20 years with two optional 10-year renewals. Fermi must build and dedicate two wells, connecting pipe and a backup generator for existing pump stations by January 2027. Deliveries are subject to the City's Drought Contingency Plan.[4][2][6]

    Grayson PathFermi America (Fermi, Inc.)

    • ✓ Verified

      The agreement limits delivery to 2.5 million gallons per day measured daily (Section 7.01). Its term is 20 years from final execution, renewable for two additional 10-year terms by mutual written agreement requested at least 180 days before expiration (Section 7.02).[4]

      Max mgd
      2.5
      Term years
      20
      Renewal terms
      2
      Renewal years
      10
    • ✓ Verified

      The rate is two times what the City charges a connection of like size within city limits (Section 6.01). Before July 1 each year the City projects its budgeted cost of service and notifies Fermi of the next fiscal year's rates, which Fermi agrees to pay (Section 6.02).[4]

      Rate multiple
      2
    • ✓ Verified

      Fermi must design, build and install at its sole cost all public improvements, including two wells in the City's Carson County Well Field, related piping to existing transmission lines and a backup generator for the existing pump station(s), dedicated to the City on completion. The City's duty to supply water is contingent on completion and dedication by January 2027 (Section 3.01). Fermi also pays for an air-gapped system at the point of delivery (Section 4.01).[4]

    • ✓ Verified

      Water is to come from the City's Carson County Well Field unless an emergency prevents it, in which case the City will endeavor to deliver from other sources (Section 4.02). Supply is subject to the City's Drought Contingency Plan, and Fermi must apply the same rationing or restrictions the City imposes citywide (Section 1.02).[4]

    • ✓ Verified

      Before the improvements are completed and dedicated, either party may terminate with cause on at least 180 days' written notice; afterward, either party may terminate for material default, subject to a 180-day cure period. On termination for any reason, all public improvements, complete or not, become City property (Section 7.03).[4]

    • ✓ Verified

      The agreement sets a maximum daily delivery but contains no minimum-purchase or take-or-pay provision, and, as the Amarillo Tribune noted, does not state what happens if Fermi exceeds the agreed amount.[4][6]

    • ✓ Verified

      Fermi may not resell City water outside its project site or extend lines beyond its property without City approval (Section 7.04). Fermi may assign the agreement to affiliates or as collateral to financing parties with prior notice but without City consent (Section 7.06).[4]

    • ✓ Verified

      The counterparty is named differently in the two documents: the MOU names Fermi America, Inc., a Delaware company; the water supply agreement names Fermi, Inc., a Texas incorporated company. Both list 620 South Taylor, Amarillo, as the principal office.[3][4]

    • ✓ Verified

      The City lists the final agreement as dated October 30, 2025; the posted scan's document title reads 'Signed October 30 2025.' The agreement takes effect on final execution.[4][2]

  9. · Context

    Texas Tech lease terms show groundwater rights conveyed to Fermi

    The Amarillo Tribune reported that the Texas Tech University System lease conveyed the site's groundwater rights to Fermi and provides TTUS 25% of gross revenue from sales of water drawn from the premises, excluding water supplied by the City.[16]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      The Texas Tech University System lease conveyed the property's groundwater rights to Fermi and pays TTUS 25% of gross revenue from sales of water drawn from the premises, not including water supplied by the City of Amarillo, and 1% of gross power sales revenue.[16]

      Ttus water revenue share
      25%
      Ttus power revenue share
      1%
    • ✓ Verified

      Ken Rainwater, Fermi America chief hydrologist: Fermi's chief hydrologist, Ken Rainwater, told the council the aquifer's saturated thickness at the site is less than 20 feet and that the site "was not an irrigatable place, because there wasn't enough water to flow to wells there."[16]

  10. · Context

    City of Amarillo applies for a foreign-trade subzone for Fermi's Panhandle site

    The Foreign-Trade Zones Board docketed an application from the City of Amarillo, grantee of Foreign-Trade Zone 252, requesting subzone status for Fermi, Inc.'s 988-acre facility at 688 FM 683, Panhandle, Texas, subject to FTZ 252's existing activation limit (docket S-133-2026). The notice was published in the Federal Register on March 16, 2026, with comments due April 27, 2026.[17]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      The City of Amarillo, as grantee of Foreign-Trade Zone 252, applied for subzone status for Fermi, Inc.'s proposed 988-acre subzone at 688 FM 683, Panhandle, Texas; the FTZ Board docketed it March 11, 2026 as S-133-2026.[17]

      Subzone acres
      988

  11. · Context

    Fermi reports groundwater leases and on-site water pipeline in earnings update

    In its fiscal-year 2025 update, Fermi said it had entered groundwater leases in Carson County and controlled up to 18.5 MGD of water supply, and had completed a 20-inch water pipeline across 7.2 miles of the campus and a water tank.[10]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      Fermi America: Fermi said it had entered into groundwater leases in Carson County and controlled up to 18.5 MGD of water supply, and that a 20-inch water pipeline across 7.2 miles of the campus and a water tank were complete (company-reported).[10]

      Controlled supply mgd
      18.5
      Pipeline miles
      7.2
    • ✓ Verified

      Fermi America: Fermi said its letter of intent with an initial prospective tenant remained in place although that prospective tenant cancelled an advance-in-aid-of-construction agreement in fall 2025; Fermi had not announced any definitive tenant leases. It reported a 2025 net loss of $486.4 million, of which all but $44.6 million were non-cash charges, and $408.5 million in cash at December 31, 2025.[10]

      Net loss 2025
      $486,400,000
      Cash net loss
      $44,600,000
      Cash
      $408,500,000

  12. · Context

    Fermi notifies the FTZ Board of proposed power-plant production activity

    The Foreign-Trade Zones Board received Fermi Inc.'s notification of proposed production activity for its Panhandle facility within FTZ 252 (docket B-64-2026). The proposed finished products are a constructed nuclear power plant facility and a constructed natural gas power plant facility. The notice was published June 11, 2026, with comments due July 21, 2026.[18]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      Fermi's FTZ production notification (B-64-2026) listed proposed finished products of a constructed nuclear power plant facility and a constructed natural gas power plant facility, with foreign-status components including gas and steam turbines, transformers and cooling towers (duty rates from duty-free to 6.7%).[18]

  13. · Context

    Fermi announces a 15-year lease with TensorWave at Project Matador

    ABC 7 Amarillo reported that Fermi signed a $6.5 billion, 15-year lease with AI cloud provider TensorWave for part of the Project Matador campus, its first binding customer agreement, with delivery to begin in stages in the second half of 2027 and the lease subject to conditions including project financing.[19]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      Fermi signed a $6.5 billion, 15-year lease with TensorWave for a 222-megawatt facility, its first binding customer agreement; the lease is subject to conditions including project financing and guarantees.[19]

      Lease value
      $6,500,000,000
      Lease years
      15
      Megawatts
      222

  14. · Context

    Fermi's second-quarter 2026 reports describe on-site water lines and groundwater leases

    Fermi's second-quarter 2026 shareholder letter (filed with the SEC August 13, 2026) said it had installed seven miles of water distribution lines "providing 2.5 million gallons per day" backed by a two-million-gallon storage tank. Its quarterly report on Form 10-Q (filed August 14, 2026) said a subsidiary entered six groundwater leases covering about 5,227 acres in Carson County in the first half of 2026. Neither document reports the status of the two wells, pipe and generator Fermi must dedicate to the City under the water supply agreement.[20][21]

    Fermi America (Fermi, Inc.)

    • ✓ Verified

      Fermi Inc.: Fermi's second-quarter 2026 shareholder letter said it had installed seven miles of water distribution lines providing 2.5 million gallons per day to support closed-loop cooling systems that it said will use 80% less water than traditional methods, backed by a two-million-gallon storage tank. These are company statements.[20]

    • ✓ Verified

      Fermi's 10-Q for the quarter ended June 30, 2026 says Fermi Water, LLC entered six groundwater leases in the first half of 2026 covering about 5,227 acres in Carson County, separate from the Texas Tech land lease, each with a 30-year initial term and a variable royalty of $3 per 1,000 gallons produced above the minimum; no variable royalty payments had been made as of June 30, 2026.[21]

      Groundwater lease acres
      5,227
      Royalty usd per 1000 gal
      $3
    • Unverified

      No source located as of October 10, 2026 reports whether the two wells, connecting pipe and pump-station backup generator Fermi must dedicate to the City by January 2027 have been built or dedicated.[20][21][4]

  15. · Context

    FTZ Board approves Subzone 252B for Fermi's Panhandle site

    The Foreign-Trade Zones Board's Executive Secretary approved the application to establish Subzone 252B for Fermi, Inc. in Panhandle, Texas, subject to FTZ 252's 2,000-acre activation limit. The approval letter says the subzone lapses if not activated by August 17, 2031, and that the approval does not imply authority for production activity requiring advance Board approval. The approval was published in the Federal Register on August 19, 2026.[22][23]

    Fermi America (Fermi, Inc.)Amarillo Economic Development Corporation (AEDC)

    • ✓ Verified

      The application to establish Subzone 252B for Fermi, Inc. was approved August 17, 2026 by the FTZ Board's Executive Secretary under delegated authority, subject to FTZ 252's 2,000-acre activation limit; the subzone lapses if not activated by August 17, 2031.[22][23]

    • ⚠ Sources differ

      The designation of Fermi's subzone differs between sources: the Federal Register approval notice and the FTZ Board's approval letter call it Subzone 252B, while the City's Fermi project page labels the approval letter and Fermi's rebuttal 'FTZ Subzone 252A'. On September 22, 2026 the FTZ Board designated the Phillips 66 subzone in Borger as Subzone 252A.

      Reported value 1[22][23]

      Designation
      252B

      FTZ Board approval notice and approval letter for Fermi, Inc.

      Reported value 2[2]

      Designation
      252A

      Link labels on the City of Amarillo's Fermi project page.

  16. · Trigger

    City reports Fermi's July 2026 water use at 310,000 gallons (386th among top users)

    At the August 25, 2026 City Council meeting, Assistant City Manager Donny Hooper said he had sampled the City's top 400 water users; in July 2026 Fermi Inc. ranked 386th at 310,000 gallons, with the project still under construction. The Amarillo Tribune's September 30 report gave the figure as around 300,000 gallons.[24][25]

    Donny HooperFermi America (Fermi, Inc.)

    • ✓ Verified

      Arithmetic from the reported figures: 300,000-310,000 gallons over July's 31 days averages roughly 9,700-10,000 gallons a day, compared with the agreement's 2.5 million gallons-per-day maximum (about 77.5 million gallons over 31 days).[25][4][24]

      Avg gallons per day
      9,677
      Cap gallons 31 days
      77,500,000
      Avg gallons per day high
      10,000
    • ✓ Verified

      Donny Hooper: At the August 25, 2026 City Council meeting, Assistant City Manager Donny Hooper said he had sampled data for the City's top 400 water users; in July 2026 Fermi Inc. ranked 386th at 310,000 gallons. The Amarillo Tribune's September 30, 2026 report gave the figure as around 300,000 gallons.

      Reported value 1[24]

      Gallons july 2026
      310,000

      Figure as reported from the Aug. 25, 2026 council presentation (ranked 386th).

      Reported value 2[25]

      Gallons july 2026
      300,000

      Rounded figure in the Tribune's Sept. 30, 2026 report ('around 300,000 gallons').

    • ✓ Verified

      Donny Hooper: In the same July 2026 sample, Tyson was the second-highest water user at about 94.4 million gallons and the Texas Department of Criminal Justice was fifth at about 29.7 million gallons.[24]

      Tyson gallons july 2026
      94,400,000
      Tdcj gallons july 2026
      29,700,000
    • ✓ Verified

      The same presentation reported the City began Stage 1 of its drought contingency plan on August 17, 2026, when its 500-million-gallon reservoir reached 60% of capacity; the reservoir was at 55.71% on August 24. The City's deliveries to Fermi are subject to the Drought Contingency Plan under the water supply agreement.[24][4]

      Reservoir pct 2026 08 24
      55.71
    • ✓ Verified

      Donny Hooper: Hooper said the Canadian River Municipal Water Authority delivers 36 million gallons a day to the reservoir and the City's well fields supply 32 million gallons a day; the City averages 50 million gallons a day in summer and had used more than 80 million gallons on several recent days.[24]

  17. · Context

    Phillips 66 Borger subzone moves to Amarillo's FTZ 252 as Subzone 252A

    The Foreign-Trade Zones Board (Order No. 2185) approved reissuing the Phillips 66 Company subzone in Borger, Texas from the City of Midland (FTZ 165) to the City of Amarillo, grantee of FTZ 252, and redesignated it Subzone 252A. Recorded here because the City's Fermi page labels Fermi's subzone documents "252A" while the Board designated Fermi's subzone 252B.[26]

    • ✓ Verified

      FTZ Board Order No. 2185 recognized the City of Amarillo as grantee of the Phillips 66 Company subzone in Borger, Texas, previously Subzone 165A under the City of Midland, and redesignated it Subzone 252A.[26]

  18. · Context

    Fermi agreement raised at the FY2026/27 budget hearing on water and sewer fees

    During the hearing on a budget with an 11% water and sewer fee increase, a resident asked where the concern about water had been a year earlier during the Fermi vote. Mayor Stanley said the council thought it had made "a pretty good business decision" and that the City had never sold a water right. Councilmember Prescott said water shortages in area towns were "not because of data centers" and that aquifers were dropping because of agricultural overproduction.[25]

    Cole StanleyDavid PrescottFermi America (Fermi, Inc.)

    • ✓ Verified

      Cole Stanley, Mayor: At the September 29, 2026 budget hearing Mayor Stanley said: "We thought we were making a pretty good business decision," and that "we've never sold a water right."[25]

    • ✓ Verified

      David Prescott, City Councilmember (Place 3): Councilmember Prescott said water shortages in area towns were "not because of data centers" and that aquifers were dropping 5 to 7 feet in some areas because of agricultural overproduction.[25]

    • ✓ Verified

      The City has not publicly tied the FY2026/27 water and sewer fee increase to the Fermi agreement: coverage of the adopted budget attributes the 11% increase to capital improvements (8%) and debt service on the $60 million Hollywood Road loan (3%), and the City's Fermi page states the agreement will not affect residential water rates.[25][2]

  19. · ContextScheduled

    Deadline for Fermi to complete and dedicate the water improvements

    Under the agreement, the City's duty to supply water is contingent on Fermi completing and dedicating the public improvements (two wells, connecting pipe, pump-station backup generator) by January 2027.[4]

    Fermi America (Fermi, Inc.)

    • Pending

      The agreement makes the City's supply obligation contingent on Fermi completing and dedicating the public improvements by January 2027. No public report of their completion or dedication was found as of October 9, 2026.[4]

Related storylines: Amarillo's wastewater plants: failures, enforcement, expansion financing and rate increases (2022-2026)