The Amarillo City Council voted 4–1 on Oct. 28 to approve a water-supply agreement allowing Fermi America to purchase up to 2.5 million gallons per day (gpd) from the city at twice the normal rate, with the contract structured to permit higher future purchases subject to later negotiation.

The decision followed more than two hours of public comment focused on water, climate and job promises tied to the proposed Fermi data center and modular nuclear generation campus. Hundreds of residents spoke in person during the meeting; dozens urged refusal or far stricter terms, while others said the project could bring economic opportunity.

Why it matters: The Ogallala (High Plains) Aquifer underlies parts of eight states and supports local agriculture and drinking water. Residents and local experts told the council they fear large industrial water use could accelerate depletion. The council’s vote permits a new business use of Amarillo’s water rights while leaving open future price and quantity negotiations.

What council approved and how the deal works
- The approved agreement establishes an initial sale of 2.5 million gpd to Fermi at a tariff of “two times” Amarillo’s normal water rate; the contract includes language for later adjustments if Fermi seeks larger amounts.
- The city attorney and staff described the contract as a 20‑year framework with options and performance terms; Fermi and city staff said Fermi will pay for required well and transmission infrastructure.

Public comment highlights
- Vito Petruzzelli, an Amarillo resident with AI industry experience, told the council: “the question isn't whether or not agentic and generative AI will change the fabric of our world, it's when and it's already happening.” He urged caution about the social impacts of automation.
- Ron Butterfield, an Earth-system science instructor, warned about water demand from nuclear cooling technology: “Fermi America wants to build 4 Westinghouse AP‑1000 modular nuclear reactors… one of these reactors uses 12 to 14,000,000 gallons per day,” and he urged skepticism of Fermi’s water-use claims.
- Multiple farmers, ranchers and local residents described the Ogallala’s regional role and expressed concern about long-term recharge rates and cumulative drawdown.
- Supporters including business leaders and longtime residents said the proposed campus could bring jobs and infrastructure investment to the Panhandle.

Fermi’s response and council exchange
- Representatives for Fermi, including Toby Nagabauer and Charlie Hamilton, appeared and answered council questions about cooling technology, regulatory reviews and grid interaction. They said the project would be powered by a mix of energy sources and that hybrid/dry cooling systems and modern designs would substantially limit water needs compared with older plants.
- Fermi noted the company would invest in wells, pipelines and other infrastructure; council and staff said those capital improvements would be executed and permitted before delivery, and the city would collect the contracted rate only after the system and deliveries were in place.

Council debate and outcome
- Council discussion weighed the economic benefits (tax, jobs, infrastructure) against long-term water stewardship and transparency concerns. Some members pressed for tighter reporting, milestone reporting and repeated renegotiation if Fermi requested additional water.
- The motion to approve the agreement passed 4–1. Council members made clear they expect future public reporting and further negotiations if Fermi seeks more water.

What’s next
- The contract allows for later requests by Fermi for increased quantities; council members and staff said any larger sale would be subject to further review and likely return to council.
- Council and staff said they will provide follow-up reporting on the city’s monitoring of well production, contractual deliveries and proposed infrastructure work that Fermi finances.

Ending: The vote authorizes a constrained initial sale while leaving room for additional oversight: council members who opposed or warned of risks said they plan to press for detailed, periodic public updates so residents can track water usage and fiscal impacts.