State-of-the-art innovation hub opens in Houston Energy Corridor

flagship facility

Schneider Electric's new Energy Innovation Center can simulate various real-world scenarios in refineries, combined-cycle power plants, ethylene plants and other facilities. Getty Images

French multinational company Schneider Electric has opened a new 10,500-square-foot, state-of-the-art Energy Innovation Center in Houston.

The new facility is located in Houston’s Energy Corridor and is designed to “foster increased collaboration and technological advancements across the entire value chain,” according to a news release from the company. The new Houston location joins Schneider's existing innovation hubs in Paris, Singapore and Bangalore.

The venue will serve as a training center for process control engineers, production superintendents, manufacturing managers, technical leads and plant operations personnel. It can simulate various real-world scenarios in refineries, combined-cycle power plants, ethylene plants, recovery boilers and chemical reactors.

It includes an interactive control room and artificial Intelligence applications that “highlight the future of industrial automation,” according to the release.

"Digitalization is significantly enhancing the global competitiveness of the U.S. through continuous innovation and increased investment into next-generation technology," Aamir Paul, Schneider Electric's President of North America Operations, said in the release.

Texas has over 4,100 Schneider Electric employees, the most among U.S. states, and has facilities in El Paso, the Dallas-Fort Worth metroplex and other areas.

"This flagship facility in the Energy Capital of the World underscores our commitment to driving the future of software-defined automation for our customers in Houston and beyond,” Paul added in the release. “With this announcement, we are excited to continue supporting the nation's ambitions around competitive, efficient and cost-effective manufacturing."

Schneider Electric says the new Houston facility is part of its expansion plans in the U.S. The company plans to invest over $700 million in its U.S. operations through 2027, which also includes an expansion at its El Paso campus.

The company also announced plans to invest in solar and battery storage systems developed, built, and operated by Houston-based ENGIE North America last year. Read more here.

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This story first appeared on our sister site, EnergyCapitalHTX.com.

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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.

Spaces, an Amsterdam-based coworking space company that entered the Houston market with a lease in Kirby Grove announced in 2017, has two more Spaces locations planned for end of 2019. Courtesy of Midway

International workspace company announces 2 more Houston coworking spots

Space(s) city

An Amsterdam-based coworking company is doubling down on Houston with the announcement of over 120,000 square feet to deliver before the end of the year.

Spaces, which first entered the Houston market with the 2017 announcement of its Kirby Grove lease, will be opening new locations in CITYCENTRE and GreenStreet, according to a news release. All three properties are owned and operated by Midway Properties.

"Spaces is redefining the way work is done, providing a contemporary, social and creative environment with a real focus on community," says Michael Berretta, vice president of Network Development, for IWG, which owns Spaces, in the release. "Houston is a vibrant city with a global business hub and an entrepreneurial attitude. Spaces gives Houston's talent pool an inspiring place to work and meet with other people who believe in the power of collaboration to drive a business forward."

Spaces has over 3,300 flexible workspace locations across the world. There are three locations open in Texas — the other two being in the Dallas area. In addition to the two expected Midway properties, a third location in Two Post Oak Central is expected to deliver in 2019, the Houston Business Journal reports.

The GreenStreet location in downtown Houston will have 63,000 square feet of workspace in repurposed retail space. Among the features promised are open space, smaller team rooms, private offices, phone booths, and a 3,000-square foot rooftop patio.

The news of the workspace follows closely behind an international accelerator program, MassChallenge, announced its Houston program in GreenStreet.

The CITYCENTRE workspace will take up almost 61,000 square feet of CITYCENTRE One and touts similar features and flexible space. Both locations also boast of existing shopping, dining, and entertainment perks in the centers.

"Spaces fits perfectly in GreenStreet, a mixed-use district that is being redeveloped as the new model of urban lifestyle,"sys Chris Seckinger, vice president and investment manager for Midway, in the release. "And CITYCENTRE gives Spaces an ideal platform to serve businesses, whether they are collaborating globally or locally, in the midst of West Houston's concentration of energy, technology and engineering firms."

Earlier this month, a report found that over the past two and a half years, Houston's coworking space has only grown marginally. With the announcement of Spaces' expansion — as well as The Cannon and The Ion projects — expected to deliver over the next two years, Houston stands to make up for lost times, so to speak.

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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.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

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