Fermi America™, City of Amarillo, and Carson County Ink Partnerships to Structure Taxes and Secure First GW of Water to Power Tomorrow's AI

Rhea-AI Summary

Fermi America (Nasdaq: FRMI) announced partnerships with the City of Amarillo and Carson County to support an 11GW private energy campus in the Texas Panhandle.

Key terms include a 10-year tax abatement and reinvestment zone approved by Carson County, a 20-year water agreement with Amarillo to supply up to 2.5 MGD at a rate set at 2x Amarillo taxpayers, company-funded infrastructure, and a non-binding MoU to scale to 10 MGD in future phases. The project includes collaboration with the Texas Tech University System and emphasizes local jobs, investment, and regional economic diversification.

Positive

• Approved 11 GW private energy campus in the Panhandle
• Carson County approved a 10-year tax abatement and reinvestment zone
• Amarillo approved a 20-year water agreement to supply up to 2.5 MGD
• Company to fund required infrastructure for water and campus development
• Non-binding MoU allows potential scale up to 10 MGD

Negative

• Water sold to Fermi at 2x the rate paid by Amarillo taxpayers
• Long-term 20-year water agreement locks pricing and supply terms
• Scale-up to higher water use is only a non-binding MoU, not guaranteed

Insights

Infrastructure & Energy-Policy Expert

Approvals secure key inputs—water and tax terms—clearing major near-term barriers for Fermi America's 11GW campus.

Fermi America's approvals create firm supply and fiscal frameworks for an 11GW private energy campus. Carson County granted a 10-year tax abatement and reinvestment zone. The City of Amarillo approved a 20-year water agreement to supply up to 2.5 million gallons per day, with a non-binding MoU to scale to 10 MGD later. These items address two concrete constraints: capital allocation clarity and utility access.

Key dependencies and risks remain clear. The water price at roughly twice the local taxpayer rate and the city-funded infrastructure obligations affect operating costs and public optics. The tax abatement sets a 10-year horizon for fiscal benefits to the project and local budgets. Both agreements include contingencies and phases that could change project economics if scaled.

Watch for three monitorable near-term milestones: execution of final water infrastructure contracts and timelines within 2025–2026, any formalization of the 10 MGD expansion in a binding agreement, and local permitting tied to the tax abatement terms. These milestones will determine whether the arrangements convert into sustained economic activity and jobs over the abatement window.

• Carson County approved a 10-year tax abatement and reinvestment zone for Fermi America's 11GW energy campus, securing local investment, spurring economic growth and long-term, sustainable jobs across the region.
• Amarillo City Council approved a 20-year water agreement to supply up to 2.5 million gallons per day for Fermi America's private grid campus at 2x the rate of area taxpayers.

AMARILLO, Texas, Oct. 29, 2025 /PRNewswire/ -- Fermi America™ (Nasdaq: FRMI) today announced a new era of partnership with the City of Amarillo and Carson County, uniting public and private leadership in a shared vision to drive long-term prosperity, economic diversity and job growth for the region, while answering President Trump's call for U.S. energy and AI dominance.

The Amarillo City Council's water-supply agreement allows the city to sell up to 2.5 million gallons per day (MGD) at a rate of 2x Amarillo taxpayers and more than other industries using significantly more water. Fermi also agreed to fund the required infrastructure and committed to responsible water stewardship for the Panhandle. The agreement included a non-binding memorandum of understanding (MoU) providing the opportunity of scaling up to 10 MGD in later phases as the project grows. 

In addition, Carson County leadership approved a 10-year tax abatement and reinvestment zone for Fermi America's 11GW private grid campus, creating new tax revenues, securing local investment, spurring economic growth and long-term, sustainable jobs across the region. 

"These partnerships are built on that gritty West Texas way of doing business," said Toby Neugebauer, Co-Founder and CEO of Fermi America. "Local leaders asked the hard questions, did their homework, and made sure their communities came first. We've heard the communities' concerns about water and land use and we are committed to being responsible stewards of both." 

In collaboration with the Texas Tech University System, Fermi America's 11-gigawatt private next-generation energy campus in the Panhandle of Texas is expected to diversify the economy and create high-paying jobs across the region — all while generously supporting local projects like AmTech.

"This is about more than energy," said former Texas Governor and Fermi Co-Founder Rick Perry. "It's about American strength and Texas grit. The City of Amarillo and Carson County are stepping up in a big way—showing the nation what it means to lead, to serve, and to build a stronger future together."  

For media inquiries, please contact:
Lexi Swearingen
Media@FermiAmerica.com 

About Fermi America 

Fermi America™ (Ticker: FRMI) (https://fermiamerica.com/) is pioneering the development of next-generation electric grids that deliver highly redundant power at gigawatt scale, required to create next-generation artificial intelligence. Co-founded by former U.S. Energy Secretary Rick Perry, and Co-Founder and former Co-Managing Partner of Quantum Energy, Toby Neugebauer, Fermi America™ combines cutting-edge technology with a deep bench of proven world-class multi-disciplinary leaders to create the world's largest, next-gen private grid. The behind-the-meter campus is expected to integrate one of the largest nuclear power complexes in America, the nation's biggest combined-cycle natural gas project, utility grid power, solar power, and battery energy storage, to deliver hyperscaler artificial intelligence. 

About the Texas Tech University System

Established in 1996, the Texas Tech University System is one of the top public university systems in the nation, consisting of five universities – Texas Tech University, Texas Tech University Health Sciences Center, Angelo State University, Texas Tech University Health Sciences Center El Paso and Midwestern State University.  

Headquartered in Lubbock, Texas, the TTU System is a more than $3 billion enterprise focused on advancing higher education, health care, research and outreach with approximately 21,000 employees and 64,000 students, more than 400,000 alums, a statewide economic impact of $19.2 billion and an endowment valued at $3 billion. In its short history, the TTU System has grown tremendously and is nationally acclaimed, operating at 20 academic locations in 16 cities (15 in Texas, 1 international).  

In addition, the TTU System is one of only nine in the nation to offer programs for undergraduate, medical, law, nursing, pharmacy, dental and veterinary education among other academic areas.  

FORWARD-LOOKING STATEMENTS: 

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategy, future operations, financial position, prospects, plans and objectives of management. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "will be," "will likely result," "should," "expects," "plans," "anticipates," "could," "would," "foresees," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook," or "continue" or the negative of these words or other similar terms or expressions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions, and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Our results could be materially different from our expectations because of various risks. 

 

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SOURCE Fermi America

FAQ

What did Fermi America (FRMI) agree with Amarillo on October 29, 2025 regarding water supply?

Amarillo approved a 20-year agreement to sell up to 2.5 MGD to Fermi at a rate of 2x Amarillo taxpayers, with company-funded infrastructure.

How large is the Fermi America energy campus announced in Amarillo (FRMI)?

The project is an 11 GW private next-generation energy campus in the Texas Panhandle.

What tax incentives did Carson County approve for Fermi America (FRMI)?

Carson County approved a 10-year tax abatement and reinvestment zone for the 11 GW campus.

Can Fermi America (FRMI) increase its Amarillo water allocation beyond 2.5 MGD?

Yes; the agreement includes a non-binding MoU that provides the opportunity to scale up to 10 MGD in later phases.

Who will pay for the infrastructure to support Fermi America's (FRMI) water needs?

Fermi America agreed to fund the required infrastructure to support its private grid campus.

What local partners are involved with Fermi America's (FRMI) Panhandle project?

Partners mentioned include the City of Amarillo, Carson County, and the Texas Tech University System.