A new report from Build American AI notes Houston’s growing AI presence. Photo via Getty Images

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.”

Houston will be home to one of Meta's new America’s Workforce Academies. Photo via datacenters.atmeta.com

Meta to bring $115 million AI data center training initiative to Houston

ai workforce

Meta and Associated Builders and Contractors have entered into a partnership to invest $115 million in training programs for the construction of AI data centers, with a portion of the project launching in Houston.

The companies announced June 8 that they would open America’s Workforce Academies at ABC chapter training centers in Houston; Indianapolis; Baton Rouge, Louisiana; and Columbus, Ohio.

The academies will offer career readiness and safety training, plus five weeks of hands-on education. Participants who complete the program will be granted a job offer from contractors working on Meta projects.

“The AI revolution is bringing change but also historic opportunities,” Dina Powell McCormick, Meta president and vice-chairman, said in a news release. “Skilled workers electrified rural America one pole at a time. They manned the factories that built the arsenal that won World War II. Now a new generation will pour the foundations and lay the fiber that secures American strength in this new age.”

Overall, the Meta and ABC aim for the academies to build a more sustainable pipeline of skilled construction workers and ensure safety and job readiness for the surging number of data center projects underway.

“This new program is an innovative talent solution that is a critical part of addressing the construction industry’s ongoing workforce shortage and creates an accelerated, new-entrant strategy for job seekers ... The sustained demand for data center construction technicians means the industry needs an all-of-the-above approach to address this shortage and grow the construction talent pool,” Michael Bellaman, ABC president and CEO, added in the release.

In Texas, Meta, the parent company of Facebook and Instagram, has launched or broken ground on data centers in El Paso, Fort Worth and Temple. The company announced in March that it planned to grow its El Paso Data center by 1 gigawatt, representing more than a $10 billion investment.

Apart from Meta, Texas has attracted data center development to power other giants like Google and Amazon in recent years. In turn, Texas has been predicted to become the biggest data center market. Commercial real estate services provider JLL reported this spring that the state could topple Northern Virginia as the world’s largest data-center market by 2030. Similarly, CBRE predicted that Houston's data center capacity could double by 2028. Read more here.

Houstonians are concerned about data centers' high energy demands and the area’s power grid reliability, according to a new report. Photo courtesy UH

New UH survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

Elon Musk announced that both SpaceX and X will relocate headquarters to two Texas cities. Photo via Getty Images

Elon Musk vows to launch solar-powered data centers in space

To Outer Space

Elon Musk vowed this week to upend another industry just as he did with cars and rockets — and once again he's taking on long odds.

The world's richest man said he wants to put as many as a million satellites into orbit to form vast, solar-powered data centers in space — a move to allow expanded use of artificial intelligence and chatbots without triggering blackouts and sending utility bills soaring.

To finance that effort, Musk combined SpaceX with his AI business on Monday, February 2, and plans a big initial public offering of the combined company.

“Space-based AI is obviously the only way to scale,” Musk wrote on SpaceX’s website, adding about his solar ambitions, “It’s always sunny in space!”

But scientists and industry experts say even Musk — who outsmarted Detroit to turn Tesla into the world’s most valuable automaker — faces formidable technical, financial and environmental obstacles.

Feeling the heat

Capturing the sun’s energy from space to run chatbots and other AI tools would ease pressure on power grids and cut demand for sprawling computing warehouses that are consuming farms and forests and vast amounts of water to cool.

But space presents its own set of problems.

Data centers generate enormous heat. Space seems to offer a solution because it is cold. But it is also a vacuum, trapping heat inside objects in the same way that a Thermos keeps coffee hot using double walls with no air between them.

“An uncooled computer chip in space would overheat and melt much faster than one on Earth,” said Josep Jornet, a computer and electrical engineering professor at Northeastern University.

One fix is to build giant radiator panels that glow in infrared light to push the heat “out into the dark void,” says Jornet, noting that the technology has worked on a small scale, including on the International Space Station. But for Musk's data centers, he says, it would require an array of “massive, fragile structures that have never been built before.”

Floating debris

Then there is space junk.

A single malfunctioning satellite breaking down or losing orbit could trigger a cascade of collisions, potentially disrupting emergency communications, weather forecasting and other services.

Musk noted in a recent regulatory filing that he has had only one “low-velocity debris generating event" in seven years running Starlink, his satellite communications network. Starlink has operated about 10,000 satellites — but that's a fraction of the million or so he now plans to put in space.

“We could reach a tipping point where the chance of collision is going to be too great," said University at Buffalo's John Crassidis, a former NASA engineer. “And these objects are going fast -- 17,500 miles per hour. There could be very violent collisions."

No repair crews

Even without collisions, satellites fail, chips degrade, parts break.

Special GPU graphics chips used by AI companies, for instance, can become damaged and need to be replaced.

“On Earth, what you would do is send someone down to the data center," said Baiju Bhatt, CEO of Aetherflux, a space-based solar energy company. "You replace the server, you replace the GPU, you’d do some surgery on that thing and you’d slide it back in.”

But no such repair crew exists in orbit, and those GPUs in space could get damaged due to their exposure to high-energy particles from the sun.

Bhatt says one workaround is to overprovision the satellite with extra chips to replace the ones that fail. But that’s an expensive proposition given they are likely to cost tens of thousands of dollars each, and current Starlink satellites only have a lifespan of about five years.

Competition — and leverage

Musk is not alone trying to solve these problems.

A company in Redmond, Washington, called Starcloud, launched a satellite in November carrying a single Nvidia-made AI computer chip to test out how it would fare in space. Google is exploring orbital data centers in a venture it calls Project Suncatcher. And Jeff Bezos’ Blue Origin announced plans in January for a constellation of more than 5,000 satellites to start launching late next year, though its focus has been more on communications than AI.

Still, Musk has an edge: He's got rockets.

Starcloud had to use one of his Falcon rockets to put its chip in space last year. Aetherflux plans to send a set of chips it calls a Galactic Brain to space on a SpaceX rocket later this year. And Google may also need to turn to Musk to get its first two planned prototype satellites off the ground by early next year.

Pierre Lionnet, a research director at the trade association Eurospace, says Musk routinely charges rivals far more than he charges himself —- as much as $20,000 per kilo of payload versus $2,000 internally.

He said Musk’s announcements this week signal that he plans to use that advantage to win this new space race.

“When he says we are going to put these data centers in space, it’s a way of telling the others we will keep these low launch costs for myself,” said Lionnet. “It’s a kind of powerplay.”

A map of U.S. data centers. Courtesy of Rice Businesses Wisdom

Your data center is either closer than you think or much farther away

houston voices

A new study shows why some facilities cluster in cities for speed and access, while others move to rural regions in search of scale and lower costs. Based on research by Tommy Pan Fang (Rice Business) and Shane Greenstein (Harvard).

Key findings:

  • Third-party colocation centers are physical facilities in close proximity to firms that use them, while cloud providers operate large data centers from a distance and sell access to virtualized computing resources as on‑demand services over the internet.
  • Hospitals and financial firms often require urban third-party centers for low latency and regulatory compliance, while batch processing and many AI workloads can operate more efficiently from lower-cost cloud hubs.
  • For policymakers trying to attract data centers, access to reliable power, water and high-capacity internet matter more than tax incentives.

Recent outages and the surge in AI-driven computing have made data center siting decisions more consequential than ever, especially as energy and water constraints tighten. Communities invest public dollars on the promise of jobs and growth, while firms weigh long-term commitments to land, power and connectivity.

Against that backdrop, a critical question comes into focus: Where do data centers get built — and what actually drives those decisions?

A new study by Tommy Pan Fang (Rice Business) and Shane Greenstein (Harvard Business School) provides the first large-scale statistical analysis of data center location strategies across the United States. It offers policymakers and firms a clearer starting point for understanding how different types of data centers respond to economic and strategic incentives.

Forthcoming in the journal Strategy Science, the study examines two major types of infrastructure: third-party colocation centers that lease server space to multiple firms, and hyperscale cloud centers owned by providers like Amazon, Google and Microsoft.

Two Models, Two Location Strategies

The study draws on pre-pandemic data from 2018 and 2019, a period of relative geographic stability in supply and demand. This window gives researchers a clean baseline before remote work, AI demand and new infrastructure pressures began reshaping internet traffic patterns.

The findings show that data centers follow a bifurcated geography. Third-party centers cluster in dense urban markets, where buyers prioritize proximity to customers despite higher land and operating costs. Cloud providers, by contrast, concentrate massive sites in a small number of lower-density regions, where electricity, land and construction are cheaper and economies of scale are easier to achieve.

Third-party data centers, in other words, follow demand. They locate in urban markets where firms in finance, healthcare and IT value low latency, secure storage, and compliance with regulatory standards.

Using county-level data, the researchers modeled how population density, industry mix and operating costs predict where new centers enter. Every U.S. metro with more than 700,000 residents had at least one third-party provider, while many mid-sized cities had none.

ImageThis pattern challenges common assumptions. Third-party facilities are more distributed across urban America than prevailing narratives suggest.

Customer proximity matters because some sectors cannot absorb delay. In critical operations, even slight pauses can have real consequences. For hospital systems, lag can affect performance and risk exposure. And in high-frequency trading, milliseconds can determine whether value is captured or lost in a transaction.

“For industries where speed is everything, being too far from the physical infrastructure can meaningfully affect performance and risk,” Pan Fang says. “Proximity isn’t optional for sectors that can’t absorb delay.”

The Economics of Distance

For cloud providers, the picture looks very different. Their decisions follow a logic shaped primarily by cost and scale. Because cloud services can be delivered from afar, firms tend to build enormous sites in low-density regions where power is cheap and land is abundant.

These facilities can draw hundreds of megawatts of electricity and operate with far fewer employees than urban centers. “The cloud can serve almost anywhere,” Pan Fang says, “so location is a question of cost before geography.”

The study finds that cloud infrastructure clusters around network backbones and energy economics, not talent pools. Well-known hubs like Ashburn, Virginia — often called “Data Center Alley” — reflect this logic, having benefited from early network infrastructure that made them natural convergence points for digital traffic.

Local governments often try to lure data centers with tax incentives, betting they will create high-tech jobs. But the study suggests other factors matter more to cloud providers, including construction costs, network connectivity and access to reliable, affordable electricity.

When cloud centers need a local presence, distance can sometimes become a constraint. Providers often address this by working alongside third-party operators. “Third-party centers can complement cloud firms when they need a foothold closer to customers,” Pan Fang says.

That hybrid pattern — massive regional hubs complementing strategic colocation — may define the next phase of data center growth.

Looking ahead, shifts in remote work, climate resilience, energy prices and AI-driven computing may reshape where new facilities go. Some workloads may move closer to users, while others may consolidate into large rural hubs. Emerging data-sovereignty rules could also redirect investment beyond the United States.

“The cloud feels weightless,” Pan Fang says, “but it rests on real choices about land, power and proximity.”

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This article originally appeared on Rice Business Wisdom. Written by Scott Pett.

Pan Fang and Greenstein (2025). “Where the Cloud Rests: The Economic Geography of Data Centers,” forthcoming in Strategy Science.

CenterPoint, NVIDIA and Palantir have formed Chain Reaction. Photo via Getty Images

CenterPoint and partners launch AI initiative to stabilize the power grid

AI infrastructure

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president and CEO of CenterPoint, added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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Houston researchers develop dissolvable implant for targeted cancer drug delivery

cancer research

Researchers at Houston Methodist have developed a biodegradable implant that can be used to safely and consistently deliver drug treatments to tumors and then dissolve without the need for further surgery.

The implant is only the size of a grain of rice, but its potential is staggering. The biodegradable nanofibrous drug-eluting seed (b-NDES) works as a reservoir parked inside a soft tumor, where it can slowly release immune-stimulating drugs over time. This overcomes a consistent problem with drugs such as immune checkpoint inhibitors. Normal systemic administration sees comparatively little of the drug making its way to the tumor, with most of it circulating throughout the body. The b-NDES is like deploying a small guerrilla fighting force embedded in enemy territory, doing maximum damage to the entrenched tumor.

"To improve cancer treatment, we're trying to start a fire inside the tumor itself," Corrine Chua, associate professor in the Center for BioNanoengineering at Houston Methodist Research Institute, said in a news release. "By activating immune cells directly within the tumor microenvironment, those cells can then travel throughout the body and seek out cancer wherever it exists. The b-NDES platform was developed to help keep therapeutic drugs concentrated inside tumors while minimizing exposure to healthy tissues.”

Chua co-led the study with Alessandro Grattoni, chair and director of the Center for BioNanoengineering at Houston Methodist Research Institute.

The study included support from the Nancy Owens Breast Cancer Foundation and the National Institutes of Health/National Cancer Institute.

Chau and Grattoni used preclinical models of triple-negative breast cancer, an aggressive form of cancer that is estrogen receptor-negative, progesterone receptor-negative and HER2-negative. Because of the receptor negativity, some popular treatments like tamoxifen and trastuzumab are ineffective. Chemotherapy has been shown to be the best course of action.

The b-NDES implant is deployed alongside radiation drugs. It keeps the drugs focused on the tumor, reducing the amount of harmful side effects typically seen when drugs are circulated more widely in the body. In 60 percent of the models, tumors were eliminated and did not cause side effects beyond the tumor site. Once the drugs have been deployed, the implant breaks down naturally.

While promising, more research will have to be done to expand use to other tumor types.

"Although the study focused on triple-negative breast cancer models, the approach could have broader applications for solid tumors," Grattoni added in the release. "It could potentially be used in cancers where there is a tumor lesion accessible for placement, including pancreatic or lung cancers."

New Houston platform Same Day Reels launches for on-demand content creation

In The Moment

If an event doesn't happen on Instagram, did it even really happen? In today's social media-driven age of branding and audience engagement, the answer increasingly is no.

Houston entrepreneur Karen De Amat is looking to fill the online content creation needs of companies with her new venture, Same Day Reels, which launched in early August. It will serve as a platform to connect companies and brands with talent that can help turn an event into a viral moment as it is happening.

"Events move quickly, and social media moves even faster,” said De Amat. “Same Day Reels was built to help brands capture the moment while it still matters. We are creating a more efficient way for businesses and creators to work together. Brands need content faster, and creators need more opportunities to turn their talent into real work. Same Day Reels brings those needs together.”

The company is focused on adding livestreams and concurrent short video content to "activations, launches, fundraisers, grand openings, conferences, hospitality experiences, and private celebrations." Such content can significantly increase the visibility of a product or brand according to digital marketing brands like Wyzowl, whose data found 63 percent of people in 2026 prefer to learn about new products via short video.

Packages offered by Same Day Reels will include filming, editing, and publishing content within hours of the targeted event.

De Amat says that her content creation platform will be a way to preserve the excitement of events and launches by enshrining them with immediate social media-driven memories.

“Event content is no longer just something you post after the fact,” De Amat said. “It is part of how people experience, remember and share the moment.”

Previously, De Amat is also the founder and CEO of Social Behavior, an influencer marketing company she launched from her home in 2014. It quickly garnered an array of clients and thrust De Amat into the spotlight, including numerous appearances on Fox 26's The Isiah Factor. Influencer Marketing Hub named her one of the top CEOs of influencer marketing companies in Houston in 2025.

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This article originally appeared on CultureMap.com.

Bristol Myers Squibb to build $2.3B Houston pharma manufacturing campus

coming soon

New Jersey-based pharmaceutical giant Bristol Myers Squibb Co. has officially named Houston as the home of its new state-of-the-art manufacturing site.

The 60,000-square-foot facility represents a $2.3 billion investment, according to a news release. It is expected to create 500 skilled jobs and will be located in Houston's Generation Park.

BMS first announced that it was considering Houston among 16 other cities for the facility in May. The new hub will manufacture small molecule, biologic and antibody-drug conjugates and is part of a $40 billion commitment to invest in the United States over five years. Construction is slated to begin next year, with the facility coming online in 2030.

"We're building the domestic manufacturing capabilities needed to deliver the next generation of medicines and support future scientific breakthroughs. Houston and the state of Texas offer the talent, infrastructure, and partnership needed to help bring that vision to life," Christopher Boerner, CEO and board chair of BMS, said in the release.

The new facility will feature a modular, multi-modal design, which will allow the company to reconfigure and add to its manufacturing capabilities over time. BMS says it expects the facility to "(grow) in scale and capability well beyond its opening configuration."

"Our decision to build this state-of-the-art manufacturing campus in Houston, Texas, reflects our confidence in the region’s ability to support a world-class, digitally advanced supply operation,” Karin Shanahan, EVP and chief supply chain and operations officer of BMS, added in the release. “This facility is designed to deliver the speed, quality, and reliability that patients depend on, combining flexible, modular manufacturing with advanced digital capabilities to ensure consistent supply across multiple modalities. It strengthens our ability to operate with resilience and positions us to reliably deliver medicines to patients today while adapting future demands.”

Texas Gov. Greg Abbott shared that the state has granted BMS a $4.89 million Texas Enterprise Fund (TEF) grant for the project. TEF grants, administered by the Texas Economic Development & Tourism Office, support business relocation or expansion projects that create "new, good-paying jobs in the community and attract significant new capital investment to the state." The development is also a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program.

“Texas is a global hub for life sciences, where today’s innovations shape the future of healthcare,” Abbott said in a news release. “This $2.3 billion investment by Bristol Myers Squibb in the dynamic biotech ecosystem in Houston is a testament to the depth of our skilled workforce and the pipeline of talent coming through our nation-leading technical colleges and research universities. With lower operating costs and easy access to markets across the U.S. and the world, Texas drives affordability for consumers.”

"Bristol Myers Squibb’s announcement is a tremendous win for Texas and the Houston region, further reinforcing our position as a premier destination for life sciences and advanced manufacturing,” added Greater Houston Partnership President and CEO Steve Kean.

Last fall, Eli Lilly and Co. selected Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston, for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Read more here.