Report: Houston sees uptick in data center leasing activity

by the numbers

According to a report from CBRE, Houston registered the eighth-most data center leasing in North America in first half of 2021. Photo by Christina Morillo/Pexels

Houston's data center market is electrified. In the first half of 2021, the local data center market saw the eight highest amount of leasing activity among the 17 North American markets tracked by commercial real estate services company CBRE.

In the first half of this year, the Houston data market experienced net absorption of 5.7 megawatts worth of capacity, up 119 percent from the first half of last year, CBRE says. Net absorption is a key indicator of leasing activity.

During the past year, Houston has added 5.1 megawatts of inventory, dropping the vacancy rate for data centers to 18.5 percent, according to CBRE.

"There have been a few large transactions in the first half of the year that added to Houston's increased absorption numbers," Brant Bernet, senior vice president in CBRE's Dallas office, says in a September 7 news release. "The major storyline for the Houston market is investor interest."

A handful of data center acquisitions already have occurred this year in the Houston area, and more could be on the horizon, Bernet said. Datacenters.com lists 20 privately owned data centers in the Houston area. Among all landlords, Dallas-based CyrusOne owns the most data centers in the Houston market — four.

In June, Las Vegas-based data center operator Switch completed its purchase of Austin-based data center company Data Foundry for $420 million. In Houston, Data Foundry operated two data centers totaling 370,000 square feet. At the end of 2021, Switch plans to develop more data centers in Houston and Austin that are set to open in 2023.

The smaller of Switch's two newly acquired data centers here is a 20,000-square-foot facility at 5555 San Felipe St. in West Houston. The larger one, encompassing 350,000 square feet, sits on an 18-acre site at 660 Greens Pkwy. in North Houston.

In March, Vienna, Virginia-based data center operator Element Critical purchased Skybox Datacenters' facility in Katy for an undisclosed amount. The more than 96,000-square-foot data center sits on 20 acres at 22000 Franz Rd. Skybox is based in Dallas.

A CBRE report indicates Houston's data center market remains dominated by international energy companies, finance companies, and regional health care providers. Demand comes largely from locally based companies.

Phillip Marangella, chief marketing officer at Herndon, Virginia-based EdgeConneX, is among insiders in the data center industry who are bullish about the future of data centers. EdgeConneX operates a 93,400-square-foot data center at 1510 Prime West Pkwy. in Katy.

"Data centers will be processing more workloads, more data, more video, more machine learning, and [will be] serving as facilitators for a global transformation in business, even smaller or more regional enterprises," Marangella tells Data Center Frontier. "Data centers are becoming part of an infrastructure fabric of capacity, connectivity, power, and proximity that is empowering enterprises to take advantage of the location, the scale, and the economics that work for them."

Data Foundry debuted its most recent expansion in North Houston, but that's just the start of the Austin-based company's growth in the Bayou City. Photo courtesy of Data Foundry

Data center in North Houston unveils newest expansion — with more growth planned

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Data Foundry Inc. may be finished with its 27,000-square-foot expansion at the company's data center in North Houston, but it's by no means finished growing at the site.

The Austin company's 18-acre, master-planned campus at 660 Greens Pkwy. allows for another 200,000 square feet. At build-out, Data Foundry will operate 350,000 square feet of space there.

Currently, the data center encompasses 150,000 square feet. The recent expansion completes the development's first phase. Each of two future phases will add 100,000 square feet.

So far, there's no timetable for the data center's second and third phases.

"It's all a function of demand. We will deploy the capital in response to the pace at which we end up filling up the new space," says Ed Henigin, chief technology officer of Data Foundry.

The 27,000-square-foot expansion debuted in late January at Data Foundry's Houston 2 Data Center. Henigin says space remains available there, but the company does have prospective tenants in the pipeline. It could take anywhere from six months to four years to lease the entire expansion, he says.

Data Foundry says increased customer demand along with business growth in Houston — especially in the healthcare, energy, and manufacturing sectors — prompted the four-megawatt expansion.

"For folks who are outside of Houston, it's an underappreciated market," Henigin says. "It's a huge economy, and there's a lot of dynamic activity happening in Houston and a lot of growth."

Generally, demand for data center space in Houston is "steady and healthy," Henigin adds.

"I don't think we're really overserved or underserved at this point. I think we're pretty well-balanced," he says.

Henigin points out that demand can shift depending on the region's economic conditions, such as upswings or downturns in the energy sector.

"A lot of the folks who have businesses in Houston have learned to be a little cautious, because you don't necessarily know when the next dry spell is coming," he says. "So there's a lot of careful planning or careful execution in business practices in order to be resilient."

Although Houston ranks as the fifth largest metro area in the U.S., it's not among the country's 10 biggest data center markets, unlike Dallas-Fort Worth and Austin/San Antonio. According to DataCenterMap.com, 40 data centers operate in the Houston area. A number of the region's data centers are in North Houston, The Woodlands, and Katy, according to datacenterHawk.

Among Data Foundry's competitors in the Houston market are CyrusOne Inc., Skybox Datacenters LLC, and Stream Data Centers LP — all based in Dallas — and San Francisco-based Digital Realty Trust Inc., according to datacenterHawk.

Customers of Data Foundry's Houston 2 Data Center include Carrizo Oil & Gas Inc., FMC Technologies Inc., Marathon Oil Corp., and Mattress Firm Inc. — all based in Houston — and Galveston-based Moody National Bank.

Houston 2 offers a 185 mph wind-rated infrastructure and an elevation above the 500-year floodplain. During Hurricane Harvey, tenants didn't lose power or network service, or experience flooding, Data Foundry says.

Data Foundry has operated data centers in the Houston area since 2002. Its other Houston data center, inside the Marathon Oil Tower at 5555 San Felipe St., comprises 20,000 square feet.

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Rice University's student startup competition names 2024 winners, awards $100,000 in prizes

taking home the W

A group of Rice University student-founded companies shared $100,000 of cash prizes at an annual startup competition.

Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge, hosted by Rice earlier this month, named its winners for 2024. HEXASpec, a company that's created a new material to improve heat management for the semiconductor industry, won the top prize and $50,000 cash.

Founded by Rice Ph.D. candidates Tianshu Zhai and Chen-Yang Lin, who are a part of Lilie’s 2024 Innovation Fellows program, HEXASpec is improving efficiency and sustainability within the semiconductor industry, which usually consumes millions of gallons of water used to cool data centers. According to Rice's news release, HEXASpec's "next-generation chip packaging offer 20 times higher thermal conductivity and improved protection performance, cooling the chips faster and reducing the operational surface temperature."

The rest of the winners included:

Second place and $25,000: CoFlux Purification
Third place and $15,000: Bonfire
Outstanding Achievement in Social Impact Award and $1,500: EmpowerU
Outstanding Achievement in Artificial Intelligence and $1,000: Sups and Levytation
Outstanding Achievement in Consumer Goods Prize and $1,000: The Blind Bag
Frank Liu Jr. Prize for Creative Innovations in Music, Fashion and the Arts and $1,500: Melody
Outstanding Achievement in Climate Solutions Prizes and $1,000: Solidec and HEXASpec
Outstanding Undergraduate Startup Award and $2,500: Women’s Wave
Audience Choice Award and $2,000: CoFlux Purification

The NRLC, open to Rice students, is Lilie's hallmark event. Last year's winner was fashion tech startup, Goldie.

“We are the home of everything entrepreneurship, innovation and research commercialization for the entire Rice student, faculty and alumni communities,” Kyle Judah, executive director at Lilie, says in a news release. “We’re a place for you to immerse yourself in a problem you care about, to experiment, to try and fail and keep trying and trying and trying again amongst a community of fellow rebels, coloring outside the lines of convention."

This year, the competition started with 100 student venture teams before being whittled down to the final five at the championship. The program is supported by Lilie’s mentor team, Frank Liu and the Liu Family Foundation, Rice Business, Rice’s Office of Innovation, and other donors

“The heart and soul of what we’re doing to really take it to the next level with entrepreneurship here at Rice is this fantastic team,” Peter Rodriguez, dean of Rice Business, adds. “And they’re doing an outstanding job every year, reaching further, bringing in more students. My understanding is we had more than 100 teams submit applications. It’s an extraordinarily high number. It tells you a lot about what we have at Rice and what this team has been cooking and making happen here at Rice for a long, long time.”

HEXASpec was founded by Rice Ph.D. candidates Tianshu Zhai and Chen-Yang Lin, who are a part of Lilie’s 2024 Innovation Fellows program. Photo courtesy of Rice

2 Houston high schools rank among America's top 100 in 2024, says U.S. News

best in class

Two Houston high schools are dominating U.S. News and World Report's prestigious annual list of the country's best public high schools.

The 2024 rankings from U.S. News, released April 23, put Houston ISD’s Carnegie Vanguard High School at No. 31 nationally (up from No. 35 last year and No. 40 in 2022) among the country’s best high schools. The school also ranks No. 248 nationally among the best STEM (science, technology, engineering, and math) high schools and No. 12 among the best magnet high schools.

Meanwhile, DeBakey High School for Health Professions ranks No. 70 nationally among the best high schools (down from No. 66 last year and No. 50 in 2022) and No. 19 among best magnet high schools. DeBakey ranked No. 426 nationally among best STEM high schools.

Topping the national list for 2024 is the BASIS Peoria Charter School in Peoria, Arizona.

Each year, U.S. News evaluates about 18,000 high schools on six factors: college readiness, reading and math proficiency, reading and math performance, underserved student performance, college curriculum breadth, and graduation rates.

“The 2024 Best High Schools rankings offer a starting point for parents to understand a school’s academic performance, whether it’s a prospective school or one that their child is already attending,” said LaMont Jones, Ed.D., the managing editor of education at U.S. News, in a release. “Accessible data on our high schools can empower families across the country as they navigate today’s educational environment and plan for the future.”

Elsewhere in Texas
Around the state, these Texas high schools also made it into the top 100 nationally:

Dallas ISD's The School for the Talented and Gifted, No. 6 (unchanged from last year). No. 21 nationally among the best STEM high schools, and No. 3 among the best magnet high schools.
Dallas ISD's Irma Lerma Rangel Young Women's Leadership School, No. 23 (down from No. 18 last year) and No. 10 nationally among the best magnet high schools.
Dallas ISD's Science and Engineering Magnet School, No. 29 nationally among the best high schools (down from No. 23 last year), No. 37 nationally among the best STEM high schools, and No. 11 nationally among the best magnet high schools.
Grand Prairie ISD's Collegiate Institute, No. 30 (up from No. 188 last year). No. 6 nationally among best charter high schools.
Austin ISD’s Liberal Arts and Science Academy, No. 38 (down from No. 32 last year and No. 34 in 2022). No. 34 nationally among the best STEM high schools.
BASIS San Antonio - Shavano Campus, No. 64 (up from No. 81 last year and No. 77 in 2022). No. 76 nationally among the best STEM high schools and No. 13 nationally among the best charter high schools.
Brownsville ISD's Early College High School, No. 71 (up from No. 229 last year).
Dallas ISD’s Judge Barefoot Sanders Law Magnet, No. 85 (up from No. 93 last year and No. 48 in 2022) . No. 21 nationally among the best magnet high schools.

When broken down just to Texas schools, Houston's Carnegie Vanguard High School (No. 5) and DeBakey High School for Health Professions (No. 8) are both in the top 10 best-rated public high schools in Texas this year, U.S. News says.

Other Houston-area schools that rank among Texas' 100 best are:

No. 24 – Kinder High School for Performing and Visual Arts, Houston ISD
No. 25 – Challenge Early College High School, Houston ISD
No. 29 – Young Women's College Prep Academy, Houston ISD
No. 32 – Eastwood Academy, Houston ISD
No. 37 – Harmony School of Innovation - Katy, Katy
No. 40 – Kerr High School, Alief ISD, Houston
No. 43 – Houston Academy for International Studies, Houston ISD
No. 47 – East Early College High School, Houston ISD
No. 59 – Clear Horizons Early College High School, Clear Creek ISD, Houston
No. 61 – Seven Lakes High School, Katy ISD
No. 63 – Early College Academy at Southridge, Spring ISD, Houston
No. 68 – KIPP Houston High School, Houston
No. 70 – North Houston Early College High School, Houston ISD
No. 71 – Victory Early College High School, Aldine ISD, Houston
No. 75 – Tompkins High School, Katy ISD
No. 76 – Clements High School, Fort Bend ISD, Sugar Land
No. 82 – Sharpstown International School, Houston ISD
No. 85 – Tomball Star Academy, Tomball ISD
No. 89 – Westchester Academy for International Studies, Spring Branch ISD, Houston
No. 95 – Harmony School of Innovation - Sugar Land, Sugar Land
No. 97 – Harmony School of Discovery - Houston, Houston
No. 98 – Energy Institute High School, Houston ISD

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This article originally ran on CultureMap.

Houston innovation leaders secure SBA funding to start equitability-focused energy lab

collaboration station

A group of Houston's innovation and energy leaders teamed up to establish an initiative supporting equitability in the energy transition.

Impact Hub Houston, a nonprofit incubator and ecosystem builder, partnered with Energy Tech Nexus to establish the Equitable Energy Transition Alliance and Lab to accelerate startup pilots for underserved communities. The initiative announced that it's won the 2024 U.S. Small Business Administration Growth Accelerator Fund Competition, or GAFC, Stage One award.

"We are incredibly honored to be recognized by the SBA alongside our esteemed partners at Energy Tech Nexus," Grace Rodriguez, co-founder and executive director of Impact Hub Houston, says in a news release. "This award validates our shared commitment to building a robust innovation ecosystem in Houston, especially for solutions that advance the Sustainable Development Goals at the critical intersections of industry, innovation, sustainability, and reducing inequality."

The GAFC award, which honors and supports small business research and development, provides $50,000 prize to its winners. The Houston collaboration aligns with the program's theme area of Sustainability and Biotechnology.

“This award offers us a great opportunity to amplify the innovations of Houston’s clean energy and decarbonization pioneers,” adds Juliana Garaizar, founding partner of the Energy Tech Nexus. “By combining Impact Hub Houston’s entrepreneurial resources with Energy Tech Nexus’ deep industry expertise, we can create a truly transformative force for positive change.”

Per the release, Impact Hub Houston and Energy Tech Nexus will use the funding to recruit new partners, strengthen existing alliances, and host impactful events and programs to help sustainable startups access pilots, contracts, and capital to grow.

"SBA’s Growth Accelerator Fund Competition Stage One winners join the SBA’s incredible network of entrepreneurial support organizations contributing to America’s innovative startup ecosystem, ensuring the next generation of science and technology-based innovations scale into thriving businesses," says U.S. SBA Administrator Isabel Casillas Guzman.

Grace Rodriguez (left) and Juliana Garaizar have partnered up — along with their teams — to collaborate on the Equitable Energy Transition Alliance and Lab. Photos courtesy

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