Houston plays a major role in Texas’ rapidly evolving AI economy, a new report indicates.

The report from Build American AI, a pro-AI advocacy group, notes Houston’s growing AI presence includes:

• A factory being built by AI chipmaker NVIDIA and electronics manufacturer Foxconn that will produce AI supercomputers and infrastructure systems
• Houston Methodist’s use of ambient AI to listen to health care providers’ conversations with patients, eliminating the need for manual notetaking
• An abundance of AI products and services for the energy sector

Across the state, billions of dollars in new AI investments are fueling advancements in construction, manufacturing, energy production, logistics, and health care, according to the report.

“Texas is not merely a place where AI products will be used. Texas is becoming one of the places where the AI economy is being assembled,” the report says.

Particularly noteworthy are four major AI-related projects around the state representing an investment of more than $140 billion, including Google’s $40 billion buildout of AI data centers.

“While California had a headstart in building the software era, Texas will build the infrastructure era,” says the report. “That is not a slogan. Economic research has revealed for decades that innovation happens where the local conditions make building and collaboration possible, and Texas is positioned to be a central hub.”

According to the report, components of Texas’ infrastructure era include:

• Energy leadership
• Top-tier hospitals
• Semiconductor investments
• Construction capabilities
• Data center growth
• Major companies and universities

On the workforce front, Stanford University’s 2026 AI Index found Texas had 80,547 AI job postings in 2025, accounting for 8 percent of the national total.

“Texas no longer needs to ask whether AI will reshape the economy. It already has,” the report concludes. “The question is whether Texas will merely host part of that future or lead it.”