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.

Kroger's self-driving cars are coming to Houston. Courtesy of Kroger

Kroger's autonomous car fleet heads to Houston for a new grocery delivery service

Look ma, no hands

Hold on to your hats, Houston. Autonomous cars are hitting the streets this spring as Kroger rolls out its fleet of self-driving, grocery-delivery cars.

Two Houston Kroger locations will provide the service to four ZIP codes — 10306 South Post Oak Road, servicing 77401 and 77096, and 5150 Buffalo Speedway, servicing 77005 and 77025.

Kroger, along with California-based robotics company, Nuro, has been operating self-driving cars delivering groceries in Scottsdale. Arizona since August. According to the release, the service has delivered thousands of orders in the self-driving vehicles.

"We've seen first-hand in Arizona how enthusiastic customers are about getting their Kroger groceries delivered by a Nuro self-driving vehicle," says Nuro co-founder, Dave Ferguson, in a release. "Texas has been a leader in encouraging self-driving innovation, and we're excited to help deliver that future for Houston — a dynamic, diverse, and welcoming metropolitan city that we're excited to soon explore and serve with this autonomous delivery service."

The service costs a flat fee of $5.95, and users can order in the app or online for same-day or next-day delivery, seven days a week. The program will launch using Toyota Prius vehicles. Currently, the exact start date of the service hasn't been provided.

"Our Arizona pilot program confirmed the flexibility and benefits provided by autonomous vehicles and how much customers are open to more innovative solutions," says Yael Cosset, Kroger's chief digital officer, in a release. "It's always been our shared vision to scale this initiative to new markets, using world-changing technology to enable a new type of delivery service for our customers. We operate 102 stores in Houston—an energetic market that embraces digital and technology advancement. The launch is one more way we are committed to sustainably providing our customers with anything, anytime, and anywhere, the way they want it."

In January, the Texas Department of Transportation created the Connected and Autonomous Vehicle Task Force to focus on being a comprehensive resource for information on all Texas CAV projects, investments, and initiatives.

"With our world-class universities, top-notch workforce and startup culture, Texas is a national leader in the development of new technologies," says Gov. Greg Abbott in the release. "As transportation technology advances, the CAV Task Force will ensure that the Lone Star State remains at the forefront of innovation."

Courtesy of Kroger

Over half of Houston business leaders say their company has already enabled AI, blockchain, and extended reality technology. Getty Images

Business leaders in Houston have a surprisingly high tech adoption rate

Early bird gets the worm

When it comes to enabling new technologies to advance business practices, Houston business leaders are ahead of the curve. According to a new study, the majority of the companies surveyed are already using artificial intelligence, blockchain, and extended reality today.

The global study, Technology Vision 2019, was conducted by Accenture and included surveys from 6,600 business and IT executives around the world, including 100 in Houston. Dallas was the only other Texas market surveyed, along with nine other major United States metros — Atlanta, Boston, Chicago, Detroit, Minneapolis, New York City, San Francisco, Seattle, and Washington D.C.

Of the 100 respondents, 91 said that innovation efforts have accelerated within their organization over the past three years because of new technology, and 80 said that while they feel their employees are digitally savvy, they are "waiting" for the company's technology to catch up. However, when it comes to the need to reskill employees due to emerging tech in the workplace, 47 percent says that need will happen within the next two years.

The survey also focused on three distinct technologies — AI, blockchain, and extended reality, which includes augmented reality, virtual reality, and mixed reality. XR responses indicate that 66 percent of business leaders have already used some sort of version of XR either in one or more of their business units (37 percent) or are piloting the technology (29 percent).

The numbers for adoption for AI is similar, with 65 percent of leaders saying they have introduced AI tech in the workplace already —nearly 2 in 5 have already adopted somewhere within the company, while over 1 in 4 say their company has an AI pilot program.

Blockchain, according to the study, falls further down the spectrum in Houston companies. Only 15 percent of the companies have a pilot program, but 42 percent have blockchain technology already in use in one or more business units — for a total of 57 percent adoption rate.

With 5G on the horizon, almost all respondents — 79 percent — say the technology is going to revolutionize their industry in terms of how they provide products or services to their clients. Almost half said that impact will happen and jobs will be altered within the next three years.

Brian Richards, managing director at Accenture, oversees the company's Houston Innovation Hub. The hub welcomes in business leaders who are utilizing Accenture's services to ideate and then implicate innovative technologies. At a recent panel in the Accenture office, Richards spoke to emerging tech in Houston and said there's been no shortage of leaders wanting to move the needle on new tech.

"I've never seen [corporations] more motivated than they are right now to be able to think differently on how they are able to engage Houston," he said.

From Station Houston's third anniversary to Virgin Trains barreling toward Houston, here's what stories readers flocked to this week. Courtesy of Station Houston

5 most popular innovation stories in Houston this week

Now trending

Editor's note: The first week of February was full of news — from new train routes potentially on track for Texas to a Houston nonprofit incubator announcing Houston's innovation ecosystem's maturity. Per usual, readers flocked to our events roundup and three innovators to know. Check out what else InnovationMap readers were interested in this month.

10 can't-miss Houston business and innovation events for February

Check out these workshops, networking events, pitch events, and other goings on in Houston this month. Getty Images

After what's felt like ages, 2019 has transitioned into a new month. For some, February means pink and red hearts. For Houstonians, it means the start of Rodeo Houston later this month. But, for entrepreneurs, the month yields a flurry of networking and professional events around town. Read more.

3 Houston tech innovators to know this week

Tech startups are popping up across industries from real estate to oil and gas, and these three founders are among the leaders in technology. Courtesy images

Often, technology and innovation are mistaken for each other. While not mutually exclusive, both tech and innovation work well together in Houston across all industries — from oil and gas to real estate and social media. These three founders engaged technology for their individual startups. Read more.

Transportation company steers talk of high-speed trains between Houston, Austin, and San Antonio

Virgin Trains may be speeding into Texas. Photo courtesy of Virgin Trains

You've likely heard of the proposed high-speed "bullet" train that would connect Houston and Dallas, as well as the proposed transportation-in-a-tube concept that would link Houston, Austin, Dallas, San Antonio, and Laredo. Now, another possible alternative to planes, Amtrak trains, and automobiles has chugged into the picture. Read more.

Mayor, Station CEO: Houston's innovation ecosystem has arrived

The new two-story wall in Station Houston's space represents Station's promise to its startup members as well as showcases the city's stewards for innovation. Natalie Harms/InnovationMap

For Station Houston on its third anniversary, Houston's not just an up-and-coming innovation leader.

"Houston's tech ecosystem is here. It exists now. It will continue to grow and gain momentum. It is not a thing of the future; it is here now," Gaby Rowe, CEO of Station Houston, tells InnovationMap. Read more.

Here's what the Bay Area can learn from Houston

When it comes to maintaining a good ecosystem, diversity is key. Houston learned that the hard way. Photo by Tim Leviston/Getty Images

Hello Bay Area! We Houstonians are concerned about you. We think your economy is becoming overly dependent on Silicon Valley. In 2018, the technology industry accounted for around 62 percent of all office leasing activity in San Francisco. From September 2017 to September 2018, tech companies and realty investors bought $1.43 billion worth of San Jose downtown properties, nearly three times what they spent the year before on property in the city. Read more.


Across the U.S., each person played an average of 21 hours each of mobile games last year. Getty Images

Report finds that Houstonians played over 97 million hours on mobile games last year

Game on

Whether its for the wanted distraction or the thrill of competition, Houstonians love their mobile games. In fact, the city as a whole racked up an estimated 97 million hours of mobile game play in 2018 — the second most for a city in the United States, according to a study.

California-based Unity Technologies tracked over 7 billion hours of gaming last year in the whole of the U.S — that's 21 hours and 6 minutes on average per U.S. resident.

The company is behind the platform that powers more than half of new mobile games. The data represents information collected from games that use Unity Analytics. So, the full amount of hours played is actually known to be even larger.

Houston was only outdone by Chicago, which spent more than 130 million hours on gaming apps. Los Angeles came in third with over 94 million hours. Dallas — the only other Texas city in the top five — came in at No. 4 with 78 million hours played. Brooklyn, New York, rounded out the top five with over 71 million hours.

Unity also reported on the top apps played across the city. All five are available on Android and iOS devices.

  1. Panda Pop
  2. Happy Color - Color By Number
  3. Pixel Art - Color By Number
  4. Helix Jump
  5. Cashman Casino

In addition to mobile game technology, Unity Technologies provides a real-time 3D development platform that's used in a wide range video games, films, auto industry applications, and more.

The video game industry is worth billions, and the predicted revenue for 2018 was estimated to be $135 billion, according to data by Newzoo reported by GamesIndustry.Biz, and mobile games make up almost half of that total figure, which is a 10 percent increase from 2017.

Consumer spending on video games is also up year over year, reports MCV Magazine. Consumers across U.S. spent $9.1 billion in the third quarter of 2018 alone.

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Houston institutions launch Project Metis to position region as global leader in brain health

brain trust

Leaders in Houston's health care and innovation sectors have joined the Center for Houston’s Future to launch an initiative that aims to make the Greater Houston Area "the global leader of brain health."

The multi-year Project Metis, named after the Greek goddess of wisdom and deep thought, will be led by the newly formed Rice Brain Institute, The University of Texas Medical Branch's Moody Brain Health Institute and Memorial Hermann’s comprehensive neurology care department. The initiative comes on the heels of Texas voters overwhelmingly approving a ballot measure to launch the $3 billion, state-funded Dementia Prevention and Research Institute of Texas (DPRIT).

According to organizers, initial plans for Project Metis include:

  • Creating working teams focused on brain health across all life stages, science and medical advances, and innovation and commercialization
  • Developing a regional Brain Health Index to track progress and equity
  • Implanting pilot projects in areas such as clinical care, education and workplace wellness
  • Sharing Houston’s progress and learnings at major international forums, including Davos and the UN General Assembly

The initiative will be chaired by:

  • Founding Chair: Dr. Jochen Reiser, President of UTMB and CEO of the UTMB Health System
  • Project Chair: Amy Dittmar, Howard R. Hughes Provost and Executive Vice President of Rice University
  • Project Chair: Dr. David L. Callender, President and CEO of Memorial Hermann Health System

The leaders will work with David Gow, Center for Houston’s Future president and CEO. Gow is the founder and chairman of Gow Media, InnovationMap's parent company.

“Now is exactly the right time for Project Metis and the Houston-Galveston Region is exactly the right place,” Gow said in a news release. “Texas voters, by approving the state-funded Dementia Prevention Institute, have shown a strong commitment to brain health, as scientific advances continue daily. The initiative aims to harness the Houston’s regions unique strengths: its concentration of leading medical and academic institutions, a vibrant innovation ecosystem, and a history of entrepreneurial leadership in health and life sciences.”

Lime Rock Resources, BP and The University of Texas MD Anderson Cancer Center served as early steering members for Project Metis. HKS, Houston Methodist and the American Psychiatric Association Foundation have also supported the project.

An estimated 460,000 Texans are living with dementia, according to the Alzheimer’s Association, and more than one million caregivers support them.

“Through our work, we see both the immense human toll of brain-related illness and the tremendous potential of early intervention, coordinated care and long-term prevention," Callender added in the release. "That’s why this bold new initiative matters so much."

Texas launches cryptocurrency reserve with $5 million Bitcoin purchase

Money Talks

Texas has launched its new cryptocurrency reserve with a $5 million purchase of Bitcoin as the state continues to embrace the volatile and controversial digital currency.

The Texas Comptroller’s Office confirmed the purchase was made last month as a “placeholder investment” while the office works to contract with a cryptocurrency bank to manage its portfolio.

The purchase is one of the first of its kind by a state government, made during a year where the price of Bitcoin has exploded amid the embrace of the digital currency by President Donald Trump’s administration and the rapid expansion of crypto mines in Texas.

“The Texas Legislature passed a bold mandate to create the nation’s first Strategic Bitcoin Reserve,” acting Comptroller Kelly Hancock wrote in a statement. “Our goal for implementation is simple: build a secure reserve that strengthens the state’s balance sheet. Texas is leading the way once again, and we’re proud to do it.”

The purchase represents half of the $10 million the Legislature appropriated for the strategic reserve during this year’s legislative session, but just a sliver of the state’s $338 billion budget.

However, the purchase is still significant, making Texas the first state to fund a strategic cryptocurrency reserve. Arizona and New Hampshire have also passed laws to create similar strategic funds but have not yet purchased cryptocurrency.

Wisconsin and Michigan made pension fund investments in cryptocurrency last year.

The Comptroller’s office purchased the Bitcoin the morning of Nov. 20 when the price of a single bitcoin was $91,336, according to the Comptroller’s office. As of Friday afternoon, Bitcoin was worth slightly less than the price Texas paid, trading for $89,406.

University of Houston energy economist Ed Hirs questioned the state’s investment, pointing to Bitcoin’s volatility. That makes it a bad investment of taxpayer dollars when compared to more common investments in the stock and bond markets, he said.

“The ordinary mix [in investing] is one that goes away from volatility,” Hirs said. “The goal is to not lose to the market. Once the public decides this really has no intrinsic value, then it will be over, and taxpayers will be left holding the bag.”

The price of Bitcoin is down significantly from an all-time high of $126,080 in early October.

Lee Bratcher, president of the Texas Blockchain Council, argued the state is making a good investment because the price of Bitcoin has trended upward ever since it first launched in early 2009.

“It’s only a 16-year-old asset, so the volatility, both in the up and down direction, will smooth out over time,” Bratcher said. “We still want it to retain some of those volatility characteristics because that’s how we could see those upward moves that will benefit the state’s finances in the future.”

Bratcher said the timing of the state’s investment was shrewd because he believes it is unlikely to be valued this low again.

The investment comes at a time that the crypto industry has found a home in Texas.

Rural counties have become magnets for crypto mines ever since China banned crypto mining in 2021 and Gov. Greg Abbott declared “Texas is open for crypto business” in a post on social media.

The state is home to at least 27 Bitcoin facilities, according to the Texas Blockchain Council, making it the world’s top crypto mining spot. The two largest crypto mining facilities in the world call Texas home.

The industry has also come under criticism as it expands.

Critics point to the industry’s significant energy usage, with crypto mines in the state consuming 2,717 megawatts of power in 2023, according to the comptroller’s office. That is enough electricity to power roughly 680,000 homes.

Crypto mines use large amounts of electricity to run computers that run constantly to produce cryptocurrencies, which are decentralized digital currencies used as alternatives to government-backed traditional currencies.

A 2023 study by energy research and consulting firm Wood Mackenzie commissioned by The New York Times found that Texans’ electric bills had risen nearly 5%, or $1.8 billion per year, due to the increase in demand on the state power grid created by crypto mines.

Residents living near crypto mines have also complained that the amount of job creation promised by the facilities has not materialized and the noise of their operation is a nuisance.

“Texas should be reinvesting Texan’s tax money in things that truly bolster the economy long term, living wage, access to quality healthcare, world class public schools,” said state Sen. Molly Cook, D-Houston, who voted against the creation of the strategic fund. “Instead it feels like they’re almost gambling our money on something that is known to be really volatile and has not shown to be a tide that raises all boats.”

State Sen. Charles Schwertner, R-Georgetown, who authored the bill that created the fund, said at the time it passed that it will allow Texas to “lead and compete in the digital economy.”

___

This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.

Houston-based HPE wins $931M contract to upgrade military data centers

defense data centers

Hewlett Packard Enterprise (HPE), based in Spring, Texas, which provides AI, cloud, and networking products and services, has received a $931 million contract to modernize data centers run by the federal Defense Information Systems Agency.

HPE says it will supply distributed hybrid multicloud technology to the federal agency, which provides combat support for U.S. troops. The project will feature HPE’s Private Cloud Enterprise and GreenLake offerings. It will allow DISA to scale and accelerate communications, improve AI and data analytics, boost IT efficiencies, reduce costs and more, according to a news release from HPE.

The contract comes after the completion of HPE’s test of distributed hybrid multicloud technology at Defense Information Systems Agency (DISA) data centers in Mechanicsburg, Pennsylvania, and Ogden, Utah. This technology is aimed at managing DISA’s IT infrastructure and resources across public and private clouds through one hybrid multicloud platform, according to Data Center Dynamics.

Fidelma Russo, executive vice president and general manager of hybrid cloud at HPE, said in a news release that the project will enable DISA to “deliver innovative, future-ready managed services to the agencies it supports that are operating across the globe.”

The platform being developed for DISA “is designed to mirror the look and feel of a public cloud, replicating many of the key features” offered by cloud computing businesses such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform, according to The Register.

In the 1990s, DISA consolidated 194 data centers into 16. According to The Register, these are the U.S. military’s most sensitive data centers.

More recently, in 2024, the Fort Meade, Maryland-based agency laid out a five-year strategy to “simplify the network globally with large-scale adoption of command IT environments,” according to Data Center Dynamics.

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