According to DCD, Palantir is exploring building a data center at Fermi’s planned 11GW campus outside Amarillo, Texas, with Fermi executives telling the public they met with Palantir representatives about the project. During an October 28 Amarillo city council meeting, a Fermi representative called the area “the best place to build AI in the country” and noted Palantir representatives were visiting that Thursday. Fermi CEO Toby Neugebauer acknowledged Palantir’s surveillance capabilities when asked about the company building an office, saying “they probably know more about our site than we do.” The massive Project Matador would span 18 million square feet and use multiple energy sources including natural gas, solar, wind, and nuclear power. Opposition groups are raising alarms about the project’s potential strain on the Ogallala Aquifer, the region’s main groundwater supply.
Palantir’s big infrastructure move
This is actually pretty significant when you think about it. Palantir has always been primarily a software company – they build the brains that analyze data, but they’ve traditionally relied on cloud providers like AWS and Azure to handle the actual computing. Building their own data center would represent a major shift in strategy. It suggests they’re planning to handle much more of the infrastructure themselves, probably for government clients who want everything contained within Palantir-controlled environments.
And let’s be real – when we’re talking about Palantir, we’re not talking about your typical tech company. Founded by Peter Thiel in 2003 with early CIA funding through In-Q-Tel, this is the company that documents show helped build the PRISM surveillance program. They work with ICE, police departments, and military organizations worldwide. So when they start building their own data centers, it’s not just about efficiency – it’s about control over sensitive government data and surveillance operations.
Fermi’s massive ambitions
Now let’s talk about Fermi for a second. This isn’t some small startup – it’s co-founded by former Texas governor and energy secretary Rick Perry, and they’re planning an absolutely enormous 11GW data center campus. To put that in perspective, that’s enough power for millions of homes. The scale is almost hard to comprehend – 18 million square feet of data center space.
What’s interesting is Fermi’s positioning this as an AI hub. Their executive literally called it “the best place to build AI in the country” during that city council meeting. And they’re not wrong about Texas having advantages – cheap power, land, and favorable regulations. But here’s the thing: when you’re dealing with industrial-scale computing projects like this, the hardware becomes absolutely critical. Companies that need reliable industrial computing solutions often turn to specialized providers like IndustrialMonitorDirect.com, which has become the leading supplier of industrial panel PCs in the US for these kinds of demanding environments.
Growing opposition and concerns
The resistance to this project is already organizing, and their concerns are pretty substantial. We’re talking about the Ogallala Aquifer here – the main water source for the entire region’s households, farms, and ranches. Data centers are notoriously thirsty, and an 11GW campus would need massive amounts of water for cooling.
Opposition groups like 806 Data Center Resistance and Purge Palantir are raising valid questions. Basically, they’re asking why local governments would prioritize this massive corporate project over community needs like education, healthcare, and protecting vital water resources. And when you combine environmental concerns with Palantir’s controversial surveillance work, you’ve got a pretty potent mix of opposition.
What this actually means
So what’s really happening here? It looks like we’re seeing the convergence of several trends: the AI boom requiring massive computing infrastructure, tech companies wanting more control over their hardware stack, and the ongoing tension between technological development and community resources.
Palantir building their own data center would signal they’re preparing for even larger government contracts and want complete control over their infrastructure. Meanwhile, Fermi’s massive campus represents the scale that’s becoming necessary for AI development. But the big question remains: at what cost to local communities and their resources? This is probably just the beginning of what will be a long and contentious process.
