Fermi America Tells Texas Lawmakers Project Matador Will Push the Frontier of AI Compute While Setting a New Standard for Water Stewardship

Rhea-AI Summary

Fermi America (NASDAQ: FRMI) detailed its four‑pillar water strategy for Project Matador, an AI-focused HyperGrid campus in the Texas Panhandle, during testimony to Texas lawmakers. The plan emphasizes dry and hybrid cooling, closed-loop reuse, matching water quality to use, and ongoing innovation to reduce consumption.

According to Fermi America, the campus is engineered to use about 80% less water than conventional cooling by recycling process water and wastewater on site, targeting long-term water-positive operations, and operating under the Panhandle groundwater limits while paying Amarillo twice the standard municipal water rate.

News Market Reaction – FRMI

-8.06%

20 alerts

-8.06% Session close to close

+17.3% Peak in 3 hr 25 min

$5.09B Market Cap

0.7x Rel. Volume

In the Jun 24 session, FRMI declined 8.06%, reflecting a notable negative market reaction. Argus tracked a peak move of +17.3% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.1% in the session following this news. A negative reaction despite positive envir...

Analysis

The stock moved -8.1% in the session following this news. A negative reaction despite positive environmental positioning fits the prior AI-tagged move of -3.85%. Governance tensions, moderate short interest, and recent insider net selling could reinforce skepticism toward long-dated Project Matador milestones.

Key Figures

Water reduction target: 80% less water Water-use limit: 1 acre-foot per acre per year Water rate premium: 2x standard municipal rate +5 more

8 metrics

Water reduction target 80% less water Projected versus conventional water-based cooling methods at Project Matador

Water-use limit 1 acre-foot per acre per year Panhandle Groundwater Conservation District framework applied to Project Matador

Water rate premium 2x standard municipal rate Rate Fermi agreed to pay the City of Amarillo for water

Campus capacity 11GW private energy campus Scale of planned energy campus supporting AI compute in Texas Panhandle

Tax abatement term 10-year tax abatement Carson County agreement supporting the AI-focused energy campus

Water agreement term 20-year water agreement City of Amarillo deal to supply water for the AI campus

Initial water supply 2.5 MGD Amarillo commitment to supply water to the project’s first phase

Founder beneficial ownership 146,516,035 shares Toby R. Neugebauer beneficial ownership disclosed across DFAN14A filings

Previous AI Reports

1 past event · Latest: Oct 29 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Oct 29	AI infrastructure deal	Positive	-3.9%	Partnerships securing water and tax structure for large AI energy campus build-out.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

AI-tagged infrastructure and water-partnership news has previously seen negative price reactions despite constructive fundamentals.

Key Terms

closed loop systems, absorption chilling, brackish desalination, controlled environment agriculture, +2 more

6 terms

closed loop systems technical

"maximizes reuse through closed loop systems, matches water quality to each use"

A closed loop system is an automated setup that continuously measures an outcome and adjusts inputs in real time to reach a target, like a thermostat that senses room temperature and turns heating on or off without a person intervening. Investors care because such systems can improve reliability, reduce operating costs, shorten response times, and create product differentiation or recurring revenue streams, while also facing specific regulatory and safety expectations that affect adoption and valuation.

absorption chilling technical

"studying technologies including absorption chilling, brackish desalination, and controlled"

Absorption chilling is a cooling technology that uses heat—often from steam, hot water, or waste heat—instead of electricity to drive a refrigeration cycle using a liquid solution and a refrigerant. For investors, it matters because it can lower operating costs and dependency on grid electricity, improve energy efficiency, and enable use of otherwise wasted heat; think of it as a heat-powered air conditioner that can turn leftover warmth into reliable cooling and cost savings.

brackish desalination technical

"technologies including absorption chilling, brackish desalination, and controlled environment"

Brackish desalination is the process of removing salt and minerals from mildly salty water—such as groundwater or river water that tastes salty—to produce clean, usable fresh water. Think of it as a water filter on an industrial scale that turns borderline salty water into tap-quality supply; for investors it matters because it addresses local water shortages, requires significant capital and energy costs, and creates predictable revenue streams tied to utility contracts and infrastructure spending.

controlled environment agriculture technical

"brackish desalination, and controlled environment agriculture for future integration"

Controlled environment agriculture is the practice of growing fruits, vegetables or herbs inside purpose-built spaces—such as greenhouses or indoor farms—where light, temperature, humidity and water are tightly managed to produce consistent crops year-round. Investors watch it because it turns farming into a predictable, scalable operation (like a factory for plants), affecting yields, costs, supply reliability and price stability, and therefore the revenue and risk profile of businesses involved.

restricted stock units financial

"7,500,000 shares underlying restricted stock units that vested upon his termination"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

schedule 14a regulatory

"filed a definitive Schedule 14A proxy statement and a green agent"

Schedule 14A is a document that companies file with regulators to share important information with shareholders before a big vote, like approving a merger or election of directors. It matters because it helps investors understand what’s happening so they can make informed decisions about the company’s future.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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In testimony before the House Natural Resources Committee, Chief Site Development Officer Charlie Hamilton details an advanced cooling and reuse strategy engineered to use roughly 80 percent less water than conventional methods.

AUSTIN, Texas, June 24, 2026 /PRNewswire/ -- Fermi Inc. (NASDAQ: FRMI) (LSE: FRMI), operating as Fermi America™ ("Fermi" or the "Company"), today underscored its commitment to responsible environmental stewardship as Chief Site Development Officer Charlie Hamilton testified before the Texas House Natural Resources Committee at an interim hearing examining data center water use and conservation. Hamilton outlined how Project Matador, the company's HyperGrid campus rising in the Texas Panhandle, is being engineered to meet the demands of the AI economy while protecting the region's most precious resource.

Speaking to lawmakers, Hamilton framed water stewardship as a personal and generational responsibility. A sixth generation Texan who grew up on a cow-calf and peanut  farm and whose family has worked the Panhandle for more than 130 years, Hamilton emphasized that Fermi America is building Project Matador with the same natural resource protections that local farmers and ranchers demand of themselves.

Pushing the Edge of What Is Possible With Cooling

At the center of Hamilton's testimony was Fermi America's four pillar Water Strategy, an approach built to conserve and reuse water at every stage of operations. The strategy maximizes dry and hybrid cooling across the entire campus, maximizes reuse through closed loop systems, matches water quality to each use, and relentlessly pursues innovative reductions in consumption.

In practice, the campus will rely on air cooled condensers and advanced hybrid cooling towers that cool primarily with air and move water through closed loop systems, an approach the company expects will use about 80 percent less water than conventional water based methods. Water is cleaned and recycled on site rather than drawn fresh and discarded. Flush water from cooling systems is captured, treated, and returned to the loop instead of being thrown away. Wastewater from sinks and restrooms is treated and reused for industrial purposes, with none of it discharged off site. Industrial tasks run on recycled, non drinking grade water kept entirely separate from drinking water, and planned systems will capture rainwater from the campus rooftops and put it back to use.

Fermi America's ambition reaches beyond efficiency. The company is aiming to become water positive, and its engineers are actively studying technologies including absorption chilling, brackish desalination, and controlled environment agriculture for future integration into the project.

Hamilton also stressed that Project Matador operates under the same water framework as every Panhandle irrigator, one acre foot of water per acre of land per year, a limit set and enforced by the Panhandle Groundwater Conservation District with no special exemptions, carve outs, or waivers. In addition, Fermi America has agreed to pay the City of Amarillo twice the standard municipal water rate while building water infrastructure for the city at the company's own cost, helping fund and strengthen the city's water system rather than drawing it down.

A Core Part of Fermi 2.0 Execution

The water strategy reflects the heart of Fermi America's 2.0 execution, a disciplined commitment to push the bleeding edge of AI compute and private power grid development while maximizing value for the community and for shareholders. By investing early in innovative technologies that reduce impacts on local resources, the company aims to increase jobs, tax revenue, and critical infrastructure for Texas at the same time it advances the frontier of the AI economy.

"Project Matador is proof that you do not have to choose between leading the world in AI compute and being a good steward of the environment," said Jacobo Ortiz, Co-President of Fermi America. "Our 2.0 execution is about pushing the bleeding edge of private power and compute while maximizing value for the communities we serve and for our shareholders. We are doing the hardest engineering on the most demanding timeline, and we are doing it sustainably, because that is what responsible leadership looks like."

"I am a sixth generation Texan, and water stewardship is not an concept to me, it is who we are," said Charlie Hamilton, Chief Site Development Officer of Fermi America. "Project Matador is pushing the frontier of AI compute and private power grid development, and we are determined to do it in a way that protects every drop of the Panhandle's water. Our advanced cooling and closed loop reuse systems let us squeeze the most out of every gallon, and our goal is not just to be water efficient but to be water positive. We intend to be a responsible neighbor, a transparent partner, and a good steward of the resources entrusted to us."

Hamilton closed his testimony with a conviction that has guided Project Matador from the beginning: economic growth and responsible stewardship must go hand in hand.

Chairman Cody Harris said after hearing the testimony, "I think what you all are doing is great. It is a really good example to set for the state on how to approach this the right way." 

About Fermi America™

Fermi America™ (Nasdaq & LSE: FRMI) develops next-generation private electric grids that deliver highly redundant power at gigawatt scale to support next-generation intelligence and AI compute. Fermi America™ combines cutting-edge technology with a deep bench of proven world-class multi-disciplinary leaders with a combined 25 gigawatts of experience, to create the world's largest, up to 17 gigawatts next-gen private grid, helping ensure America's energy and AI dominance. The behind-the-meter Project Matador campus is expected to integrate the nation's biggest combined-cycle natural gas project, one of the largest clean, new nuclear power complexes in America, utility grid power, solar power, and battery energy storage, to support hyperscale AI and advanced computing. For additional information visit www.fermiamerica.com.

Media Contact

Fermi Inc. Communications  |  press@fermiamerica.com  |  620 S. Taylor, Suite 301, Amarillo, Texas 79101

 

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SOURCE Fermi Inc.

FAQ

What is Fermi America's Project Matador in Texas and its focus for FRMI shareholders?

Project Matador is Fermi America’s HyperGrid campus in the Texas Panhandle focused on high-performance AI compute. According to Fermi America, it is designed to pair advanced private power grid development with strict water stewardship, aiming to support jobs, tax revenue, and AI infrastructure.

How will Project Matador reduce water use compared to conventional data centers for FRMI?

Project Matador is engineered to use about 80% less water than conventional water-based cooling. According to Fermi America, the campus will rely on air-cooled condensers, advanced hybrid cooling towers, and closed-loop systems that clean, recycle, and reuse water instead of drawing and discarding fresh supplies.

What is Fermi America's four pillar water strategy for Project Matador (NASDAQ: FRMI)?

Fermi America’s four pillar water strategy focuses on maximizing dry and hybrid cooling, maximizing reuse through closed-loop systems, matching water quality to each use, and pursuing innovative reductions. According to Fermi America, this framework guides all water decisions at Project Matador to limit local resource impacts.

How does Project Matador handle wastewater and rainwater to support water stewardship at FRMI?

Project Matador plans to treat and reuse wastewater from sinks and restrooms for industrial uses, with none discharged off site. According to Fermi America, flush water is captured, treated, and returned to cooling loops, and future systems are planned to capture and reuse rooftop rainwater.

What does being 'water positive' mean for Fermi America's Project Matador and FRMI investors?

Fermi America describes a goal of becoming water positive at Project Matador, meaning contributing more usable water than it consumes. According to Fermi America, engineers are studying technologies like absorption chilling, brackish desalination, and controlled environment agriculture for potential future integration to support this ambition.

How is Fermi America working with Amarillo and local regulators on water for Project Matador (FRMI)?

Project Matador operates under the same one acre-foot per acre annual water limit as Panhandle irrigators. According to Fermi America, the company also agreed to pay Amarillo twice the standard municipal water rate and fund city water infrastructure itself to help strengthen the municipal system.

How does Project Matador connect AI compute growth with environmental stewardship for Fermi America?

Project Matador is presented as combining advanced AI compute and private power development with strict water safeguards. According to Fermi America, its 2.0 execution strategy invests early in innovative cooling and reuse technologies to reduce local resource impacts while supporting economic growth and AI infrastructure in Texas.