Here were Houston's top 5 tech innovation stories of 2019

2019 in review

From a supercomputer making its debut in West Houston to a behind-the-scenes look at Amazon's artificial intelligence-enabled fulfillment center, these were Houston's top stories in tech. Natalie Harms/InnovationMap

Editor's note: Houston had some big stories in technology this year, from a peek inside Amazon's artificial intelligence-enabled Houston facility and the opening of a new supercomputer to space-focused Houston startups and the future of virtual reality.

Massive data center officially opens just west of Houston

Matthew Lamont is managing director at DownUnder GeoSolutions' which just opened its new, powerful data center west of Houston. Courtesy of DUG

DownUnder GeoSolutions has officially opened its new data centre in Skybox Houston in Katy, Texas. It's being billed as one of the most powerful supercomputers on earth.

The center, which houses DUG's geophysical cloud service, DUG McCloud, celebrated its grand opening on Thursday, May 16. The company's data hall has 15 megawatts of power and resides in a building designed to withstand hurricane-force winds up to 190 mph.

A second, identical hall is already planned to be built out later this year. Together, the two machines will have a capacity of 650 petaflop, which is a measurement of computing speed that's equal to one thousand million million floating-point operations per second. Continue reading.

5 startups keeping Houston known as the Space City

Houston celebrated 50 years since the Apollo moon landing on July 20. Here are some startups that are going to be a part of the next 50 years of space tech in Houston. Photo via NASA.gov

This month, for the most part, has been looking back on the history Houston has as the Space City in honor of the 50th anniversary of the moon landing on July 20. While it's great to recognize the men and women who made this city the major player in space exploration that it is, there are still entrepreneurs today with space applications and experience that represent the future of the Space City. Continue reading.

How Amazon's Houston fulfillment center uses AI technology and robotics to move millions of products

From robotics to artificial intelligence, here's how Amazon gets its products to Houstonians in record time. Photo by Natalie Harms/InnovationMap

Last summer, Amazon opened the doors to its North Houston distribution center — one of the company's 50 centers worldwide that uses automation and robotics to fulfill online orders.

The Pinto Business Park facility has millions of products in inventory across four floors. Products that are 25 pounds or less (nothing heavier is stocked at this location) pass through 20 miles of conveyor belts, 1,500 employees, and hundreds of robots.

The center also has daily tours open to the public. We recently visited to see for ourselves the process a product goes through at this Houston plant. From stowing to shipping, here's how packages go from your shopping cart to your front porch. Continue reading.

Developments in virtual reality technology are changing the workforce, say Houston experts

The solution to Houston's workforce problem might be right in front of our eyes. Getty Images

Everyone's job has training associated with it — from surgeons to construction crane operators — and there's a growing market need for faster, more thorough training of our workforce.

"The best way to learn how to do something, is to just get out and do it," says Eric Liga, co-founder of HoustonVR. "But there are a lot of reasons why you can't do that in certain types of training."

Augmented and virtual reality training programs are on the rise, and Liga cites safety, cost, and unpredictable work environments as some of these most obvious reasons reasons to pivot to training employees through extended reality. This type of training also provides portability and has proven higher retention, Liga says in his keynote speech at Station Houston's AR/VR discuss on April 25.

"You get a much higher retention rate when you actually go out and do something — physically going through the motions — than you do sitting in a classroom or reading a book," he says. Continue reading.

Recently renovated Downtown Houston office space snags leases from 2 tech companies

Main&Co's office space is now 100 percent leased. Courtesy of Main&Co

Two tech-focused companies moved into a newly developed office space in downtown Houston at the intersection of Main Street and Commerce Street. One company relocated its Houston office, and the other company has expanded to the city for the first time.

Oil and gas AI-enabled analytics platform, Ruths.ai relocated its downtown office to Main&Co, located at 114 Main St. The company has 8,457 square feet of office space in the recently renovated historic building.

Meanwhile, global robotics process automation company UiPath has expanded to build a Houston team. The computer software company is based in New York, but has a presence in 18 countries. The company's office has 5,187 square feet of Main&Co's office space. Continue reading.

This week's top stories are all about big things coming to Houston, including The MKT. Courtesy of The MKT

5 most popular innovation stories in Houston this week

What's trending

This week's trending news definitely has a theme. InnovationMap readers flocked to big news stories about projects or promises not only delivering soon, but with so much more up their sleeves — five promises the mayor had for Houston, a huge mixed-use project already planning phase two, and a supercomputer named Bubba who has a twin already in the making.

Need more than just trending news on Fridays? Subscribe to our daily newsletter that sends fresh stories straight to your inboxes every morning.

Massive data center officially opens just west of Houston

Matthew Lamont is managing director at DownUnder GeoSolutions' which just opened its new, powerful data center west of Houston. Courtesy of DUG

DownUnder GeoSolutions has officially opened its new data centre in Skybox Houston in Katy, Texas. It's being billed as one of the most powerful supercomputers on earth.

The center, which houses DUG's geophysical cloud service, DUG McCloud, celebrated its grand opening on Thursday, May 16. The company's data hall has 15 megawatts of power and resides in a building designed to withstand hurricane-force winds up to 190 mph. Read more about DUG's new center out west.

Photos: The Cannon enters home stretch ahead of opening next month

The Cannon is expecting to open by the end of next month. Courtesy of The Cannon

If all goes according to plan, The Cannon's new space will be up and running by the end of June. The bulk of the construction, which started a little over a year ago, is done, and the team is on the home stretch. Read the story and check out renderings and progress photos.

3 Houston innovators to know this week

The three Houston innovators to know this week represent new, exciting things for the innovation ecosystem. Courtesy photos

The movers and shakers within the Houston innovation ecosystem come from all kinds of industries — from private equity to supercomputing. This week's innovators to know reflect that industry diversity and are bringing something new to the table. Meet this week's Houston innovators.

5 things Mayor Turner promised Houston in his State of the City Address

Mayor Sylvester Turner talked parks, innovation, firefighter salaries, and more at the Greater Houston Partnership's State of the City. Natalie Harms/InnovationMap

In the 2019 State of the City Address hosted by the Greater Houston Partnership on May 20, Mayor Sylvester Turner took the stage at the Marriott Marquis in front of over 1,500 Houstonians.

Some of the obvious topics were of course on the table — pension reform, hurricane recovery, job growth — but Mayor Turner surprised attendees with the announcement of a public-private parks program and again alluded to the re-envisioned of Astroworld. Here's what the mayor wants to bring to Houston.

Massive mixed-use project to bring creative office and coworking space to the Houston Heights

The MKT expects to revolutionize the live-work-play model with everything from retail and restaurant to office and coworking space. Courtesy of The MKT

On a stroll or a spin down the Heights Hike and Bike Trail, you might not notice a complete transformation is eminent. The MKT — a mixed-use renovation and build out project — is getting ready to break ground.

The five-building, 200,000-square-foot project will bring 30 retail and restaurant concepts, and 100,000 square feet of office space together along with four acres of green space, parking, and an outdoor venue alongside 1,000 linear feet of the trail between North Shepherd Drive and Herkimer Street. The MKT name comes from the Missouri-Kansas-Texas railroad — later known as the Katy Railroad — that was transformed into the Heights Hike and Bike Trail. Read the story and check out all the renderings.

The three Houston innovators to know this week represent new, exciting things for the innovation ecosystem. Courtesy photos

3 Houston innovators to know this week

Who's who

The movers and shakers within the Houston innovation ecosystem come from all kinds of industries — from private equity to supercomputing. This week's innovators to know reflect that industry diversity and are bringing something new to the table.

Jon Nordby, managing director of Houston's MassChallenge Texas chapter

Jon Nordby, former exec at Houston Exponential, will lead the inaugural Houston MassChallenge cohort. Courtesy of MassChallenge

Jon Nordby, who recently served as Houston Exponential's director of strategy since its launch, was named as the managing director of MassChallenge Texas in Houston, a zero-equity startup accelerator.

"MassChallenge's not-for-profit, no equity model is uniquely suited to accelerate the development of Houston's innovation ecosystem and is the foundation early-stage startups need to get to the point of disruption or pivot as fast as possible," says Nordby in a release.

Before HX, Nordby served as vice president of talent and innovation at the Greater Houston Partnership, and was essential in creating the organization's Innovation Initiative. Click here to learn more about the appointment.

Matthew Lamont, managing director at DownUnder GeoSolutions

Matthew Lamont is managing director at DownUnder GeoSolutions which just opened its new, powerful data center west of Houston. Courtesy of DUG

Matthew Lamont isn't technically a Houstonian, but the managing director of Perth, Australia-based DownUnder GeoSolutions gets the honorary title for bringing one of the world's most powerful supercomputers, nicknamed Bubba, to the Houston area. In fact, perhaps Lamont accepts the recognition on behalf of Bubba, who — while inanimate — is definitely a Houstonian.

DUG is heavily investing in Houston, and Bubba is just the start. The company plans to start on a friend for Bubba later this year and bring an even more powerful supercomputer to the market by 2021. Read more about Lamont, Bubba, and all that DUG is doing in Houston here.

Taseer Badar, founder and CEO of ZT Corporate

Taseer Badar is in the business of making money. Courtesy of ZT Corporate

Taseer Badar will shoot it to you straight: Houston startups struggling to find capital might need to look nationally or globally.

"Investors in Houston want positive earnings before interest, tax, and amortization," he says. "But that doesn't mean it's not possible in New York, Dallas, Austin, or other cities. There are technology conferences everywhere, that's a great way to get known as a startup."

As CEO and founder of ZT Corporate with 1,000 investors to manage, he knows private equity, and what it takes to invest. Read more about Badar here.

Matthew Lamont is managing director at DownUnder GeoSolutions' which just opened its new, powerful data center west of Houston. Courtesy of DUG

Massive data center officially opens just west of Houston

Now online

DownUnder GeoSolutions has officially opened its new data centre in Skybox Houston in Katy, Texas. It's being billed as one of the most powerful supercomputers on earth.

The center, which houses DUG's geophysical cloud service, DUG McCloud, celebrated its grand opening on Thursday, May 16. The company's data hall has 15 megawatts of power and resides in a building designed to withstand hurricane-force winds up to 190 mph.

A second, identical hall is already planned to be built out later this year. Together, the two machines will have a capacity of 650 petaflop, which is a measurement of computing speed that's equal to one thousand million million floating-point operations per second.

In addition to the second hall, DUG is working to build another giant computing system with exaflop capacity — a billion billion calculations per second — by 2021.

"We are in a race to build the first exascale supercomputing system," says Phil Schwan, CTO for DUG, in a news release.

Australia-based DUG first started construction on Bubba, the nickname for the machine, last year and chose Skybox Datacenters as the facility to put Bubba in after a global search. The supercomputer landing in Houston represented the largest data center transaction in the Houston area's history. Dallas-Fort Worth, Austin, and San Antonio have long overshadowed Houston as hotspots for data center activity in Texas.

An differentiating asset of Bubba is the cooling process, which reduces energy usage and costs. Thirteen miles of pipes connect the hard drives to 20-foot cooling towers. Bubba uses "its own patented immersion system that submerges the computer nodes in more than 700 specially-designed tanks filled with polyalphaolefin dielectric fluid," according to the release.

"The complete DUG Insight software suite is available, and is fully-optimised to run on the cloud," says DUG's managing director, Matthew Lamont.

DUG's device is based on Intel® Xeon® processors, and the company uses Intel's technology to enhance its services, and there are more than 40,000 Intel Xeon processor nodes within the DUG McCloud network.

"The close collaboration between our two companies ensures DUG customers have access to the compute resources needed to obtain more meaningful insights from the geophysical landscapes they are exploring," says Trish Damkroger, vice president and general manager of Intel's Extreme Computing Organization, in a release.

"The Bubba supercomputer is a tremendous addition to the DUG McCloud network, and we look forward to our continued collaboration to build even more powerful systems to help accelerate this research and development."

Super-sized supercomputer

Natalie Harms/InnovationMap

Bubba, as the machine is called, has 15 megawatts of power and resides in a building designed to withstand hurricane-force winds up to 190 mph.

DownUnder GeoSolutions, which has its U.S. headquarters in Houston, is getting ready to flip the switch on what is being billed as the world's fastest supercomputer. Photo via DUG.com

World's fastest supercomputer is getting ready to power on in Houston

Booting up

An Australian company that provides geoscience and tech services to the oil and gas industry is gearing up to flip the switch in Katy on what's being billed as the world's fastest supercomputer.

At the 20-acre Skybox Houston data center campus in the Energy Corridor, DownUnder GeoSolutions is assembling a 15-megawatt data center that will house more than 40,000 servers to create the world's fastest supercomputer. Houston is the U.S. headquarters for DUG.

The data center will power a cloud computing service, known as DUG McCloud, that's tailored to the geosciences sector. The company says DUG McCloud will supply "enormous" computing capacity and high-performance storage for DUG's cloud business.

Construction on DUG McCloud — which has been delayed due to recent heavy rains — is set to be completed in April, according to the company's blog.

"DUG McCloud will be available to external companies to expand their computational resources on demand," the company says on its blog. "In addition, the cloud service will give clients access to DUG's proprietary software, with the option of source code, to accelerate their research, development, and production."

DUG McCloud is being touted as the world's biggest cloud computing service for the oil and gas industry. Among its prospective clients are global oil companies, government-owned oil producers, seismic contractors, and data companies.

"DUG McCloud is offering a wide range of companies the opportunity to significantly accelerate their oil and gas projects with cutting-edge geophysical software, stacked with extraordinary supercomputer power and services," Mick Lambert, the newly hired manager of DUG McCloud, said in December.

So, just how extraordinary will DUG's new supercomputer be?

DUG's equipment — contained in a building designed to withstand hurricane-force winds up to 190 mph — will offer more than 250 single-precision petaflops of computing speed, or 250,000 trillion calculations per second.

For now, the world's fastest supercomputer is Summit, a collaboration between the U.S. Department of Energy and IBM. Its top speed is 200 petaflops. Summit operates at Oak Ridge National Laboratory in Tennessee.

Over the long term, DUG envisions its data center being able to handle exascale computing, capable of generating at least 1 quintillion calculations per second. A quintillion has twice as many zeroes as a billion does. China is set to debut the world's first exascale supercomputer in 2020 — a year ahead of the first one to be established in the U.S., a $500 million public-private project called Aurora being developed by the Department of Energy and Intel.

DUG's deal for its data center in Katy represents the largest data center transaction in the Houston area's history. Dallas-Fort Worth, Austin, and San Antonio have long overshadowed Houston as hotspots for data center activity in Texas.

Matthew Lamont, co-founder of DUG, said in October that the company conducted an "exhaustive" search for the data center. "Houston was a natural choice," he said, "given the low cost of power and the fact that Skybox had the available infrastructure ready to go."

A unique feature of DUG's data center is how the servers will be cooled. The company's patent-pending DUG Cool system will immerse all of the servers in custom-designed tanks filled with an environmentally friendly cooling fluid.

DUG says this fluid enables condensed water-cooling chillers to be used to cool the servers, rather than server fans and refrigeration units. This will reduce energy consumption by 45 percent compared with traditional air-cooled systems, according to DUG.

"We like to call it the greenest cloud service in the world," Lamont said on DUG's blog. "DUG McCloud certainly offers more than just a silver lining."

The DUG center represents about 65 percent of the 23 megawatts of data center space under construction in the Houston area, according to a new report from commercial real estate services company CBRE.

"As high-performance computing continues to grow in importance to the energy sector, it is likely that additional latency-sensitive deployments will grow in the Houston market," Haynes Strader, senior associate at CBRE, says in a news release.

"Latency-sensitive" refers to the need for technology to act quickly in response to various events.

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Rice Alliance names Houston healthtech exec as first head of platform

new hire

The Rice Alliance for Technology and Entrepreneurship has named its first head of platform.

Houston entrepreneur Laura Neder stepped into the newly created role last month, according to an email from Rice Alliance. Neder will focus on building and growing Houston’s Venture Advantage Platform.

The emerging platform, which is being promoted by Rice Alliance and the Ion, aims to connect founders with the "people, capital and expertise they need to scale."

"I’ve spent a lot of time thinking about what it takes to make an innovation ecosystem more navigable, more connected, and more useful for founders," Neder said in a LinkedIn post. "I’m grateful for the opportunity to do that work at Rice Alliance, alongside a team with a long history of supporting entrepreneurship and innovation."

"Houston has the talent, institutions, and industry base to create real advantage for founders," she added. "I’m looking forward to listening, learning, and building stronger pathways across the ecosystem."

Neder most recently served as CEO of Houston-based Careset, where she helped bring the Medicare data startup to commercialization. Prior to that, Neder served as COO of Houston-based telemedicine startup 2nd.MD, which was acquired for $460 million by Accolade in 2021.

"Laura brings a rare combination of founder empathy, operational experience and ecosystem leadership," Rice Alliance shared.

Neder and Rice Alliance also shared that the organization is hiring developers to design the new Venture Advantage Platform. Learn more here.

Elon Musk's SpaceX files initial paperwork to sell shares to the public

Incoming IPO

Elon Musk's space exploration company has filed preliminary paperwork to sell shares to the public, according to two sources familiar with the filing, a blockbuster offering that would likely rank as the biggest ever and could make its founder the world's first trillionaire.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk's ambitions to set up a base on the moon, put datacenters the size of several football fields in orbit and possibly one day send a man to Mars.

The sources spoke on condition of anonymity because they were not authorized to talk publicly about the confidential registration with the Securities and Exchange Commission.

SpaceX did not respond immediately to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed but the figure is reportedly as much as $75 billion. At that level, the offering would easily eclipse the $29 billion that Saudi Aramco raised in its IPO in 2019.

The offering, coming possibly in June, could value all the shares of SpaceX at $1.5 trillion, nearly double what the company was valued in December when some minority owners sold their stakes, according to research firm Pitchbook, before an acquisition that increased its size.

Musk owns 42% of the SpaceX now, according to Pitchbook, though that figure will change with the IPO when new owners are issued shares. In any case, he is likely to pierce the trillion dollar mark because he is already close. Forbes magazine estimates Musk's net worth at roughly $823 billion.

In addition to making reusable rockets to hurl astronauts and hardware into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company also recently brought under its roof two other Musk businesses, social media platform X, formerly Twitter, and artificial intelligence business, xAI, in a controversial transaction because both the seller and the buyer were controlled by him.

SpaceX has become the biggest commercial launch company in its industry, responsible for sending payloads into orbit for customers across the globe, but has also benefited from big taxpayer spending. That has raised conflicts of interest issues given that Musk was the biggest donor to President Donald Trump's campaign and is still a big backer.

In the past five years, SpaceX won $6 billion in contracts from NASA, the Defense Department and other U.S. government agencies, according to USAspending.gov.

Among current SpaceX owners is Donald Trump Jr, the president's oldest son. He owns a shares through 1789 Capital. That venture capital firm made him a partner shortly after his father won the presidency for a second time and has been buying up federal contractors seeking to win taxpayer money ever since.

The White House and Trump himself have repeatedly denied there are any conflicts of interest between his role as president and his family's businesses.

8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

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