Fermi America has temporarily halted the construction of the Project Matador AI campus as it awaits permits from state-owned TCEQ. The client company, Fermi, has firmly reiterated that the project has been temporarily halted, not cancelled, as earlier speculated. The Panhandle 1st Coalition scrutinized Fermi America following reports that workers were dismissed at the company’s data center construction site.

The data center project is steadily taking shape in Amarillo, Texas. Panhandle noted that the situation reflects rushed development and insufficient regulatory planning. They also noted workers were abruptly released from the Project Matador construction site, leaving families without income and stability. The group also said some workers had relocated to Amarillo based on assurances tied to the project’s timeline.

“Building before obtaining all necessary permits and financial assurances is not innovation, it is negligence,” the coalition said. Moreover, they attributed that the stall was the effects of poor planning fall on workers rather than corporate leadership. These remarks implored Fermi to clearly address the scope on the project. The advancement on Project Matador has been astounding as Titan also announced earlier last week that it had secured contractor for fuel gas stations. 

Scope on the Project Matador AI Campus in Texas

“Construction at the Project Matador site has been happening at Fermi speed,” said Toby Neugebauer. He is the co-founder and CEO of Fermi America. “We completed our first phase so fast that we paused construction temporarily because we didn’t want to risk getting a speeding ticket from TCEQ while awaiting our final Clean Air Permit.” Neugebauer said the company completed its initial phase in roughly 150 days.

Furthermore, it plans to resume work once permitting is finalized, with expectations of moving even faster during the next phase. Fermi America did not directly address whether workers were formally laid off or temporarily released during the pause. Also, neither the company nor the coalition provided specific figures on how many workers were affected. No information was provided from the Texas Commission on Environmental Quality (TCEQ) on how long the processing of the final permits would take. Critics from Panhandle have noted that they stand with impacted workers and is calling for greater transparency and accountability.

“When projects collapse under poor planning and questionable leadership, it sends a message far beyond this site,” the coalition said. Furthermore, they added that Amarillo deserves development that is responsible, fully permitted, properly funded. “…a project rooted in respect for both people and place,” they added.

Project Factsheet

• Project type: Data center Project Matador.
• Setting: Amarillo, Texas, United States.
• Developer: Fermi America
• Statutory authority: Texas Commission on Environmental Quality (TCEQ)
• Project category: Development of a large scale data center.

Current status:

• The project has been temporarily halted.
• Waiting on Final Clean Air Permit by TCEQ.
• The Fermi America said that the project was not cancelled.

Reason for pause:

• Permit processing by TCEQ
• Company stalled its operation to prevent regulatory non-compliance.

Construction progress:

• The first phase was finished within about 150 days.
• Following step to be undertaken after the permitting is complete.

Workforce impact:

• Cases of workers being released out of site during pause.
• No verified statistics of number of affected workers.
• Company has not indicated whether it was temporary or layoffs.

Stakeholder response:

• The implementation of the projects was criticized by Panhandle 1st Coalition.
• Claims of hasty development and inadequate planning of regulations.
• Coalition demanding transparency, accountability and responsible development.

Developer statement:

• CEO Toby Neugebauer said that building was fast and taking a break was risk aversion.
• Company also anticipates a quicker development at subsequent stages after securing the permits.

Regulatory outlook:

• None of the timeframes given by TCEQ concerning the ultimate approval of the permit.

Community considerations:

• Local anxiety with regard to displacing workers.
• There are also clamors of full permitted, fully-funded and planned development.