Houston data center plugs in sustainable upgrades

hardware update

The hardware upgrades more than “double the effective horsepower of DUG’s Houston data center.” Photo via dug.com

An Australia-based company has launched a major upgrade of its Houston data center with sustainability in mind.

DUG Technology announced it's increased the company’s high performance computing (HPC) capabilities and also reinforced its commitment to sustainable innovative technology. The company announced its latest investment in 1500 new AMD EPYCTM Genoa servers, which has 192 cores and 1.5 terabytes of DDR5 memory each. Quebec-based IT solution company Hypertec provided the immersion-born hardware.

“DUG’s decision highlights the unmatched technological advancements and superior performance of Hypertec immersion-born products, which are setting a new benchmark in the industry,” Hypertec’s Patrick Scateni, vice president of global sales says in a news release.

Recently, DUG deployed 600 new Intel Xeon CPU Max Series machines, which are equipped with 128 cores and one terabyte of RAM. All of their existing servers had a RAM upgrade to 384 gigabytes. The hardware upgrades more than “double the effective horsepower of DUG’s Houston data center,” according to the company.

DUG initially started construction on Bubba in 2018, 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 with Dallas-Fort Worth, Austin, and San Antonio having previously overshadowed Houston as hotspots for data center activity in the state.

“Houston was a natural choice," DUG’s Managing Director Matthew Lamont previously told InnovationMap. “Given the low cost of power and the fact that Skybox had the available infrastructure ready to go."

DUG’s Houston facility was the DCD Awards winner of the 2019 Enterprise Data Centre Design Award. The upgrade of DUG’s Houston-based supercomputer Bubba was opened with a ribbon-cutting ceremony by the Hon Stephen Dawson MLA, Minister for Emergency Services; Innovation and the Digital Economy; Science; Medical Research, during his “Western Australia: USA Connect” mission to the United States.

Also present for the announcement was Christopher Skeete, Minister for the Economy in the National Assembly of Québec. DUG joined the Western Australia (WA) trade delegation to Texas, led by Minister Dawson. The trade delegation looks to establish strategic connections through investment and trade with WA with a focus on the energy transition and green technology.

“It is very exciting to see our HPC capabilities scale in response to the increasing demand for our technology,” Lamont says in the release. “The new hardware was purchased after extensive testing and our partners were chosen based on the unparalleled performance of their solutions. The Intel machines are already turbocharging our new MP-FWI Imaging technology, which is having a transformative impact on the way we process seismic data.

"Delivering unsurpassed imaging with rapid turnaround for our clients, it is a complete replacement for the conventional processing and imaging workflow," he continued. "The new Hypertec-supplied AMD machines are needed to accelerate delivery of both current and imminent projects, and to support the unprecedented demand we continue to see moving forward.”

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.

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Intuitive Machines forms partnership with Italian companies for lunar exploration services

to the moon

Houston-based space technology, infrastructure and services company Intuitive Machines has forged a partnership with two Italian companies to offer infrastructure, communication and navigation services for exploration of the moon.

Intuitive Machines’ agreement with the two companies, Leonardo and Telespazio, paves the way for collaboration on satellite services for NASA, a customer of Intuitive Machines, and the European Space Agency, a customer of Leonardo and Telespazio. Leonardo, an aerospace, defense and security company, is the majority owner of Telespazio, a provider of satellite technology and services.

“Resilient, secure, and scalable space infrastructure and space data networks are vital to customers who want to push farther on the lunar surface and beyond to Mars,” Steve Altemus, co-founder and CEO of Intuitive Machine, said in a news release.

Massimo Claudio Comparini, managing director of Leonardo’s space division, added that the partnership with Intuitive Machines is a big step toward enabling human and robotic missions from the U.S., Europe and other places “to access a robust communications network and high-precision navigation services while operating in the lunar environment.”

Intuitive Machines recently expanded its Houston Spaceport facilities to ramp up in-house production of satellites. The company’s first satellite will launch with its upcoming IM‑3 lunar mission.

Intuitive Machines says it ultimately wants to establish a “center of space excellence” at Houston Spaceport to support missions to the moon, Mars and the region between Earth and the moon.

Houston hospitals win $50M grant for ibogaine addiction treatment research

ibogaine funding

The Texas Health and Human Services Commission has awarded $50 million to UTHealth Houston in collaboration with The University of Texas Medical Branch at Galveston (UTMB Health) to co-lead a multicenter research trial to evaluate the effect of ibogaine, a powerful psychoactive compound, on patients suffering from addiction, traumatic brain injury and other behavioral health conditions.

The funding will establish a two-year initiative—known as Ibogaine Medicine for PTSD, Addiction, and Cognitive Trauma (IMPACT)—and a consortium of Texas health institutions focused on clinical trials and working toward potential FDA-approved treatments.

The consoritum will also include Texas Tech University, Texas Tech University Health Sciences Center El Paso, The University of Texas at Austin, The University of Texas Health Science Center at San Antonio, The University of Texas at Tyler, The University of Texas Rio Grande Valley, Texas A&M University, The University of North Texas Health Science Center, Baylor College of Medicine and JPS Health Network in Dallas.

Ibogaine is a plant-based, psychoactive substance derived from the iboga shrub. Research suggests that the substance could be used for potential treatment for patients with traumatic brain injuries, which is a leading cause of post-traumatic stress disorders. Ibogaine has also shown potential as a treatment for addiction and other neurological conditions.

UTHealth and partners will focus on ways that ibogaine can treat addiction and associated conditions. Meanwhile, UT Austin and Baylor College of Medicine will concentrate on using it to treat traumatic brain injury, especially in veterans, according to a news release from the institutions.

The consortium will also support drug developers and teaching hospitals to conduct FDA-approved clinical trials. The Texas Health and Human Services Commission will oversee the grant program.

“This landmark clinical trial reflects our unwavering commitment to advancing research that improves lives and delivers the highest standards of care,” Dr. Melina Kibbe, UTHealth Houston president and the Alkek-Williams Distinguished Chair, said in the news release. “By joining forces with outstanding partners across our state, we are building on Texas’ tradition of innovation to ensure patients struggling with addiction and behavioral health conditions have access to the best possible outcomes. Together, we are shaping discoveries that will serve Texans and set a model for the nation.”

The consortium was authorized by the passage of Senate Bill 2308. The bill provides $50 million in state-matching funds for an ibogaine clinical trial managed by a public university in partnership with a drug company and a hospital.

“This is the first major step towards the legislature’s goal of obtaining FDA approval through clinical trials of ibogaine — a potential breakthrough medication that has brought thousands of America’s war-fighters back from the darkest parts of depression, anxiety, PTSD, and chronic addiction,” Texas Rep. Cody Harris added in the release. “I am excited to walk alongside UTHealth Houston and UTMB as these stellar institutions lead the nation in a first-of-its-kind clinical trial in the U.S.”

Recently, the University of Houston also received a $2.6 million gift from the estate of Dr. William A. Gibson to support and expand its opioid addiction research, which includes the development of a fentanyl vaccine that could block the drug's ability to enter the brain. Read more here.

Tesla no longer world's biggest EV maker as sales fall for second year

Tesla Talk

Tesla lost its crown as the world’s bestselling electric vehicle maker as a customer revolt over Elon Musk’s right-wing politics, expiring U.S. tax breaks for buyers and stiff overseas competition pushed sales down for a second year in a row.

Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.

Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.

It's a stunning reversal for a car company whose rise once seemed unstoppable as it overtook traditional automakers with far more resources and helped make Musk the world's richest man. The sales drop came despite President Donald Trump's marketing effort early last year when he called a press conference to praise Musk as a “patriot” in front of Teslas lined up on the White House driveway, then announced he would be buying one, bucking presidential precedent to not endorse private company products.

For the fourth quarter, Tesla sales totaled 418,227, falling short of even the much reduced 440,000 target that analysts recently polled by FactSet had expected. Sales were hit hard by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September.

Tesla stock fell 2.6% to $438.07 on Friday.

Even with multiple issues buffeting the company, investors are betting that Tesla CEO Musk can deliver on his ambitions to make Tesla a leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11%.

The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.

For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.

Musk said earlier last year that a “major rebound” in sales was underway, but investors were unruffled when that didn't pan out, choosing instead to focus on Musk's pivot to different parts of business. He has has been saying the future of the company lies with its driverless robotaxis service, its energy storage business and building robots for the home and factory — and much less with car sales.

Tesla started rolling out its robotaxi service in Austin in June, first with safety monitors in the cars to take over in case of trouble, then testing without them. The company hopes to roll out the service in several cities this year.

To do that successfully, it needs to take on rival Waymo, which has been operating autonomous taxis for years and has far more customers. It also will also have to contend with regulatory challenges. The company is under several federal safety investigations and other probes. In California, Tesla is at risk of temporarily losing its license to sell cars in the state after a judge there ruled it had misled customers about their safety.

“Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives, a well-known bull on the stock. “We're dealing with people's lives.”

Still, Ives said he expects Tesla's autonomous offerings will soon overcome any setbacks.

Musk has said he hopes software updates to his cars will enable hundreds of thousands of Tesla vehicles to operate autonomously with zero human intervention by the end of this year. The company is also planning to begin production of its AI-powered Cybercab with no steering wheel or pedals in 2026.

To keep Musk focused on the company, Tesla’s directors awarded Musk a potentially enormous new pay package that shareholders backed at the annual meeting in November.

Musk scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.

Musk could become the world's first trillionaire later this year when he sells shares of his rocket company SpaceX to the public for the first time in what analysts expect would be a blockbuster initial public offering.

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