Fermi Inc. (NASDAQ: FRMI), operating as Fermi America, presented its water conservation approach for Project Matador, a planned data center campus in the Texas Panhandle, before the Texas House Natural Resources Committee on June 24.

Chief Site Development Officer Charlie Hamilton testified at an interim hearing on data center water use, describing a four-pillar water strategy the company says is designed to use approximately 80% less water than conventional cooling methods.

The strategy relies on air-cooled condensers and hybrid cooling towers that primarily use air, with water circulated through closed-loop systems. The campus is designed to treat and recycle wastewater on site, reuse flush water from cooling systems, and use non-drinking grade recycled water for industrial tasks. The company also plans to capture rainwater from campus rooftops for reuse.

Hamilton told lawmakers that Project Matador operates under the same water allocation rules as other Panhandle irrigators — one acre-foot of water per acre of land per year — as set by the Panhandle Groundwater Conservation District, with no special exemptions.

Fermi America has also agreed to pay the City of Amarillo twice the standard municipal water rate and to fund water infrastructure construction for the city at the company's own cost.

The company stated it is studying additional technologies, including absorption chilling, brackish desalination, and controlled environment agriculture, with a stated goal of becoming water positive.

"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.

Committee Chairman Cody Harris commented after 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."

Information in this article is based on a company press release.