The Texas AI Boom Is Outpacing Water Regulations
News ClipThe Texas Observer·Amarillo, Potter County, TX·2/4/2026
The world's largest artificial intelligence data center complex is being built in Amarillo, Texas, by Fermi America and the Texas Tech University System. The 18 million square foot Project Matador will include 4 nuclear reactors and a natural gas plant, raising concerns about the project's massive water and electricity demands in the face of Texas' water scarcity. The announcement comes as the White House released a new AI strategy calling for streamlined environmental permitting, potentially sidestepping regulations. Industry experts warn that Texas is rushing to build AI infrastructure without a planning system capable of assessing industrial water needs.
electricitywaterannouncementenvironmental
Gov: Nuclear Regulatory Commission, White House
The world's largest AI data center complex is being built in Amarillo, Texas, spanning 18 million square feet with four nuclear reactors and a natural gas plant. Texas is rushing to build this AI infrastructure without adequately planning for the immense water needs, which could collectively consume up to 161 billion gallons per year by 2030. However, Texas does not require data centers to disclose their water use or prioritize non-potable supplies, leaving municipalities vulnerable to potential water shortages. Some policymakers are calling for the AI industry to adopt the water recycling protocols of the oil and gas industry to ease the strain on Texas' water resources.