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Houston tech jobs to grow in 2025 as Texas leads U.S. in new tech employment

by the numbers

Tech employment in the Houston metro area is expected to climb by more than two percent this year, according to a new projection.

CompTIA’s State of the Tech Workforce 2025 report forecasts the Houston area will employ 158,176 tech professionals this year, compared with an estimated 154,905 last year. That would be an increase of 2.1 percent.

These numbers take into account tech workers across all industries, not just those employed in the tech sector. Many of these professionals do work in the tech sector (40 percent), with the remainder (60 percent) employed in other sectors.

Even more impressive than the year-to-year increase is the jump in Houston-area tech employment from 2019 to 2025. During that period, tech employment grew 16.6 percent, according to the report.

The Houston area ranks eighth among major metro areas for the number of tech jobs expected to be added this year (3,271). Dallas rises to No. 1 for the most jobs expected to be added (projection of 13,997 new tech jobs in 2025), with Austin at No. 5 (7,750 new jobs) and San Antonio at No. 21 (1,617 new jobs).

On a state-by-state basis, Texas ranks first for the number of tech workers projected to be added this year (40,051)—up significantly from the 8,181 jobs estimated to be added in 2024—and second for the size of the tech workforce last year (972,747), the report says. The Lone Star State lands at No. 4 for the highest percentage (24 percent) of tech jobs expected to be added from 2025 to 2035.

Backed by a nearly $1.4 billion commitment from the state, the semiconductor industry is helping propel the growth of tech jobs in Houston and throughout Texas.

In 2023, the state launched the Texas Semiconductor Innovation Fund. The fund provides incentives to encourage semiconductor research, design and manufacturing in Texas. State lawmakers allocated $698.3 million for the fund. Another $660 million in state money will help establish semiconductor research and development centers at the University of Texas at Austin and Texas A&M University.

“Texas has the innovation, the infrastructure, and the talent to continue to lead the American resurgence in critical semiconductor manufacturing and the technologies of tomorrow,” Gov. Greg Abbott said in a release.

The Houston area is benefiting from the semiconductor boom.

For example, chip manufacturer Nvidia and electronics maker Foxconn plan to build a factory in Houston that will produce AI supercomputers.

Nvidia said in April that the AI supercomputers “are the engines of a new type of data center created for the sole purpose of processing artificial intelligence — AI factories that are the infrastructure powering a new AI industry.”

Meanwhile, tech giant Apple plans to open a 250,000-square-foot factory in Houston that will manufacture servers for its data centers in support of Apple’s AI business. The Houston plant is part of a four-year, $500 million nationwide expansion that Apple unveiled in February.

The analysis cites Amazon, Apple, and Tesla as three of the major employers in Texas pursuing AI initiatives. Photo via Getty Images

Texas ranks as top state for interest in AI-related job postings

eye on AI

If internet search volume is an accurate barometer, Texas is a hotbed for interest in artificial intelligence jobs.

An analysis by Agility Writer, whose technology helps users produce AI-generated content, shows Texas ranks second among the states with the highest monthly search volume for AI-related jobs. The analysis puts Texas’ monthly search volume at 1,300, with California sitting in first place at 1,900 monthly searches.

“As the AI revolution continues to gain momentum, the geographic distribution of interest in AI careers is likely to evolve further, with states investing in AI education and fostering supportive ecosystems poised to reap the benefits of this transformative technology,” says Adam Yong, CEO of Agility Writer.

The analysis cites Amazon, Apple, and Tesla as three of the major employers in Texas pursuing AI initiatives.

Dice.com, a search engine for tech jobs, says AI roles that are in high demand include machine learning engineer, data scientist, AI research scientist, and robotics engineer.

“Looking forward, the demand for AI professionals is expected to intensify as technologies continue to advance and integrate into everyday business processes and consumer products. AI is not just creating jobs but also transforming them, requiring workers to adapt by gaining new skills,” says Dice.com.

A January 2024 report from career platform LinkedIn found that AI consultant and AI engineer are two of the 25 fastest-growing jobs in the U.S. this year. Most of these roles are concentrated in San Francisco, New York City, Washington, D.C.-Baltimore, and Boston, according to the report.

On the flip side, some analysts predict millions of jobs will be affected by or even lost to AI. For example, research from investment banking giant Goldman Sachs indicates roughly two-thirds of U.S. occupations “are exposed to some degree of automation by AI.”

A study released in 2023 by Chamber of Commerce, a business research company, anticipates as many as 12 percent of Houston-area workers could lose their jobs by 2027 due to AI.

"AI and technology in general may be taking certain jobs away, and yet we also see how it is changing the nature of jobs and even organizations and professions. In the ever-changing arena of AI, employees, job-seekers, and students will continue to adapt and learn new job skills that align with and anticipate workforce needs,” AI expert Fred Oswald, the Herbert S. Autrey Chair in Social Sciences at Rice University and a professor of psychological sciences, said in a 2023 news release.

According to a new report, Houston's a growing hub for tech jobs. Photo via Getty Images

Report: Houston tech workforce sees steady growth

job market

The Houston metro area may not enjoy a national profile as a tech hub, but the region is a growing force in tech employment.

The State of the Tech Workforce report, released by the CompTIA trade group, found that the Houston metro area added 5,090 tech jobs in 2022. That put Houston at No. 9 among major U.S. metro areas for growth in tech jobs last year. Tech employment in the region grew 3.5 percent in 2022 versus 2021, compared with the national growth rate of 3.2 percent.

“In a year of even more uncertainty than usual, the tech labor market routinely defied expectations,” Tim Herbert, chief research officer at CompTIA, says in a news release. “The data continues to confirm the degree to which technology underpins so many facets of business activity across the economy and the breadth of employers reliant on technical and digital skills.”

CompTIA predicts the tech workforce in the Houston area will grow 2.2 percent this year, down more than a full percentage point from 2022. The projected growth rate would represent about 3,300 new jobs.

These are the tech jobs that CompTIA expects to see the biggest gains here in 2023:

Software developer
Software programmer
Web developer
Software quality assurance specialist
Database specialist
Data scientist
Computer scientist
Cybersecurity specialist
Systems engineer

The share of Houston-area job postings for roles in emerging technology or those requiring emerging-tech skills accounted for nearly one-fourth (24.4 percent) of the region’s job postings in 2022, the report says. These jobs are in areas such as artificial intelligence, robotics, and blockchain.

An estimated 150,145 people work in tech-related jobs in Houston, with a median wage of $89,197, according to the report. That wage is 112 percent higher than the median wage for all occupations in the region.

The tech sector generates an estimated economic impact of $20.7 billion for the Houston metro area, making up 3.3 percent of the entire local economy, CompTIA says.

Houston saw the biggest year-over-year jump in tech job postings among the top 25 U.S. cities for tech job growth, according to this report. Photo via Getty Images

Houston ranks as the top market for tech job growth

By the numbers

Houston is experiencing a boom in tech employment.

A recent report from Dice, a job platform for the tech industry, says Houston saw the biggest year-over-year jump in tech job postings among the top 25 U.S. cities for those postings.

From January through October this year, the number of tech job postings in Houston soared 45.6 percent versus the same period a year earlier. That compares with a 22.8 percent statewide increase during the same time span.

“Although sometimes overshadowed by the cachet of Dallas, Austin, and San Antonio, Houston is absolutely a tech hub in its own right, attracting a mix of major tech companies and VC-backed startups to join its already established base of aerospace, defense, and energy companies,” Dice says.

For the one-year period covered by the Dice report, San Antonio witnessed a 17.3 percent rise in tech job postings, with Austin at 9.6 percent and Dallas at 7.7 percent.

In citing Houston’s astronomic showing, Dice notes that the region benefits from the presence of tech employers like Asurion, AWS, Fiserv, Dell, IBM, and Siemens, along with a number of venture-backed startups.

Top tech occupations in the Houston area include software developer/engineer, business analyst, .NET developer, data analyst/engineer/scientist, DevOps engineer, network engineer, and full stack engineer, according to Dice. The region’s average tech salary is $100,341.

More broadly, the Greater Houston Partnership forecasts healthy job growth in 2023 while noting that a recession could temper the growth.

A “short and shallow” recession in the first half of 2023 would mean a net gain of 60,800 jobs next year, the partnership says. If no recession hits Houston, that number could climb as high as 79,200 jobs. However, a prolonged recession would limit job growth to about 30,400 jobs.

The partnership predicts 2023 job growth will be strongest in the region’s construction, energy, government, health care, professional services, and restaurant sectors. Within the professional category, which includes tech services, the partnership anticipates the addition of anywhere from 2,000 to 7,900 new jobs next year.

Through the first 10 months of this year, the Houston area added 144,000 new jobs, according to data from the Texas Workforce Commission. In November, the region’s unemployment rate stood at 4 percent, down from 5.1 percent a year earlier.

“As we look ahead to 2023 and what the future has in store, I’m incredibly optimistic about Houston’s prospects, despite a possible recession,” Bob Harvey, president of the partnership, says in a news release. “We have our challenges — from ensuring we lead on the energy transition to effectively competing for top talent — but each time Houston has been underestimated, we’ve come out on top. I believe that will be the case once again.”

Houston's tech job force growth leads Texas, says the new report. Image via Getty Images

Houston tops Texas as No. 1 city for growth in tech jobs, says new report

plugged in

While a certain city tends to draw all the buzz as the top Texas tech hub — especially since Elon Musk moved there — Houston has just emerged as No. 1 in the Lone Star State regarding tech jobs.

A new report from Dice, an online platform for tech professionals, shows Houston No. 5 among major U.S. cities for the growth of tech job postings from the first half of 2021 to the first half of 2022.

Houston, says the Dice report, registered an increase of 83 percent — making it tops in Texas.

Elsewhere in Texas, San Antonio No. 6 among major U.S. cities (and No. 2 in Texas) with an increase of 80 percent. Dallas appeared at No. 15 on the list, recording a 58 percent growth rate for tech job postings. Surprisingly, Austin failed to make the top 25 in this category.

Overall, Orlando, Florida topped the list, boasting a 111 percent growth rate for tech job postings.

This news is hardly surprising for Houston. In March, as CultureMap reported, Houston landed at No. 2 on Blind ’s list of the best-paying Texas cities for software engineers. Here, the average annual salary is $111,625, and the average annual compensation is $137,987.

“Long before Austin became a magnet for jobs, there was Houston. Long a hub for the aerospace, defense, and energy industries, the aptly named Space City has been a go-to place for a job in tech,” Blind noted.

In October 2021, as CultureMap and sister site InnovationMap reported, employers in the Houston area posted openings for 14,714 tech jobs in the third quarter of 2021, which was up 44 percent from the same period last year. Through the first nine months of this 2021, Houston-area employers listed nearly 39,000 openings for tech positions.

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This article originally ran on CultureMap.

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Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.

5 Houston scientists named winners of prestigious Hill Prizes 2026

prized research

Five Houston scientists were recognized for their "high-risk, high-reward ideas and innovations" by Lyda Hill Philanthropies and the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST).

The 2026 Hill Prizes provide seed funding to top Texas researchers. This year's prizes were given out in seven categories, including biological sciences, engineering, medicine, physical sciences, public health and technology, and the new artificial intelligence award.

Each recipient’s institution or organization will receive $500,000 in direct funding from Dallas-based Lyda Hill Philanthropies. The organization has also committed to giving at least $1 million in discretionary research funding on an ad hoc basis for highly-ranked applicants who were not selected as recipients.

“It is with great pride that I congratulate this year’s Hill Prizes recipients. Their pioneering spirit and unwavering dedication to innovation are addressing some of the most pressing challenges of our time – from climate resilience and energy sustainability to medical breakthroughs and the future of artificial intelligence,” Lyda Hill, founder of Lyda Hill Philanthropies, said in a news release.

The 2026 Houston-area recipients include:

Biological Sciences: Susan M. Rosenberg, Baylor College of Medicine

Rosenberg and her team are developing ways to fight antibiotic resistance. The team will use the funding to screen a 14,000-compound drug library to identify additional candidates, study their mechanisms and test their ability to boost antibiotic effectiveness in animal models. The goal is to move toward clinical trials, beginning with veterans suffering from recurrent infections.

Medicine: Dr. Raghu Kalluri, The University of Texas MD Anderson Cancer Center

Kalluri is developing eye drops to treat age-related macular degeneration (AMD), the leading cause of vision loss globally. Kalluri will use the funding to accelerate studies and support testing for additional ocular conditions. He was also named to the National Academy of Inventors’ newest class of fellows last month.

Engineering: Naomi J. Halas, Rice University

Co-recipeints: Peter J. A. Nordlander and Hossein Robatjazi, Rice University

Halas and her team are working to advance light-driven technologies for sustainable ammonia synthesis. The team says it will use the funding to improve light-driven catalysts for converting nitrogen into ammonia, refine prototype reactors for practical deployment and partner with industry collaborators to advance larger-scale applications. Halas and Nordlander are co-founders of Syzygy Plasmonics, and Robatjazi serves as vice president of research for the company.

The other Texas-based recipients include:

Artificial Intelligence: Kristen Grauman, The University of Texas at Austin
Physical Sciences: Karen L. Wooley, Texas A&M University; Co-Recipient: Matthew Stone, Teysha Technologies
Public Health: Dr. Elizabeth C. Matsui, The University of Texas at Austin and Baylor College of Medicine
Technology: Kurt W. Swogger, Molecular Rebar Design LLC; Co-recipients: Clive Bosnyak, Molecular Rebar Design, and August Krupp, MR Rubber Business and Molecular Rebar Design LLC

Recipients will be recognized Feb. 2 during the TAMEST 2026 Annual Conference in San Antonio. They were determined by a committee of TAMEST members and endorsed by a committee of Texas Nobel and Breakthrough Prize Laureates and approved by the TAMEST Board of Directors.

“On behalf of TAMEST, we are honored to celebrate the 2026 Hill Prizes recipients. These outstanding innovators exemplify the excellence and ambition of Texas science and research,” Ganesh Thakur, TAMEST president and a distinguished professor at the University of Houston, added in the release. “Thanks to the visionary support of Lyda Hill Philanthropies, the Hill Prizes not only recognize transformative work but provide the resources to move bold ideas from the lab to life-changing solutions. We are proud to support their journeys and spotlight Texas as a global hub for scientific leadership.”

Investment bank opens new Houston office focused on energy sector

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

Energy systems such as nuclear and geothermal
Energy supply chains
Energy-transition fuel and technology
Traditional energy

“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

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This article originally appeared on EnergyCaptialHTX.com.

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