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

by the numbers

The Houston area is expected to employ 158,176 tech professionals this year, according to a new report by CompTIA. Photo via Getty Images.

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.

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Texas ranks in the top 10 states with promising digital economies. Photo via Getty Images

The future of Texas’ digital economy is strong, according to a new study

by the numbers

A new report from California-based software firm Tipalti ranks Texas in the top 10 for states with the best digital economy outlooks.

Based on findings from Indeed.com, the U.S. Census Bureau, The Computing Technology Industry Association, and BroadbanNow, the study looks at which states and countries are best prepared for future and continued shifts towards a more digitized world.

Texas was ranked ninth overall, with a score of 8.4 out of 10 for Tipalti’s digital economy score. The report based this score on a few criteria. Here’s what it found.

Texas was found to have had:

  • 86.23 “digital jobs” per every 100,000 posted
  • A 425.9 MBps download speed
  • 2,634.01 tech employees per every 100,000 employees
  • An economic impact of $142.8 billion economic impact from the tech sector
  • 39,299 tech firms in the state
  • A $91,885 median tech occupation wage

Comparatively, Virginia, which ranked first with a 10 out of 10 score, had:

  • 125.09 “digital jobs” per every 100,000 posted
  • A 505.6 MBps download speed
  • 4,047.26 tech employees per every 100,000 employees
  • An economic impact of $57.8 from the tech sector
  • 20,600 tech firms in the state
  • A $105,412 median tech occupation wage

Of the states in the top 10, Texas had the second-highest tech sector economic impact, falling only behind California with an impact of $515.6 billion. California also had the highest number of tech firms in the country with a total of 54,303.

Vermont was reported to have embraced remote working the most, with 63.05 remote jobs posted per 100,000 residents. Maryland had the highest average download speeds of 506.7 Mbps. And tech workers in Washington were reported to earn the highest median tech occupation wage of $124,653.

The United States did not rank on Tipalti's list of countries with the most promising digital economies. The city-state, which could "dominate the digital landscape in the near future," according to the report, had $193.93 billion in total tech exports in 2020.

On a late-2022 report, Houston and Texas also ranked high among regions to launch a startup. Houston ranked as ninth, falling just behind Dallas at No. 8, on a list from the 42Floors real estate website of the top spots for new entrepreneurs. Around that same time, Job search platform Lensa also ranked Texas as the best state to launch a startup.
From amenities to flexibility, here's what tech companies need to prioritize in a working environment to stay competitive. Courtesy of HOK

Tech companies need flexible and personalized workplaces to stay competitive, according to this Houston interior design expert

Guest column

Nowhere is the rapid pace of change more apparent than in the tech sector. Fierce competition for talent, an evolving regulatory environment, and mounting privacy and data security challenges confront both well-established tech leaders and startups, forcing them to continuously adapt and innovate.

Companies that succeed in this hyper-competitive market have two things in common: workforces and workspaces that can pivot to address new demands and business models. In a recent report titled HOK Forward: Tech Workplace Takes Center Stage, HOK explored the impact tech industry challenges are having on the office space and examined design solutions that can make these spaces more responsive and successful.

The report found that workplace flexibility is key when it comes to spurring innovation and collaboration. So too is personalization. Each company's ideal environment should reflect its culture, work style, mobility profiles, and business goals and be continually re-evaluated as the organization grows.

Five workplace trends that are gaining popularity in the tech sector include:

  • Activity-Based Workplaces (ABW) – This office concept encourages movement and empower people to select the right space for the job at hand. ABW environments are typically designed to serve four major work functions: solo work, collaboration, learning, and socializing and rejuvenation. These spaces work nicely for organizations that are market-oriented in organizational structure.
  • Neighborhood-based Choice Environments (NCE) – A variation of the ABW model, these spaces create a neighborhood or home for teams to operate out of while still allowing people to have access to a variety of work settings. These spaces are ideal for organizations that are team-based and mobile, but seek to build community.
  • Agile Environments – Scrum spaces where project-based teams from different business groups or departments can gather to collaborate on special projects. These spaces are helpful for team-based organizations that desire belonging and community, as they are highly interactive and collaborative.
  • Maker Environments for Mobile Occupants (MEMO) – These spaces are emerging in sectors where rapid development is key. They encourage experimentation and group work in entrepreneurial environments with flat organizational structures.
  • Immersive Environments – These spaces pull the best lessons learned from ABW, NCE, agile environments and MEMO and tailor them to meet the specific needs of a company to create custom spaces.

These creative approaches meld the needs of an evolving workforce with the needs of the organization. But attracting talent extends far beyond the work styles accommodated. So, how can tomorrow's tech workplace attract and retain top talent?

Amenities play a critical role. Amenity offerings should be diverse and speak to the culture of an organization. Nap pods, wellness rooms, medical clinics and maker spaces are benefits gaining popularity in the tech industry and beyond. These amenities speak to a workforce that values convenience, works hard and finds inspiration in unique ways.

Smart workplaces are gaining popularity in the technology sector. Complete with multiple sensors that track office use—such as how often a space is used and the peak times of activity within a communal space—this advanced technology can help building owners and operators optimize a space and better understand which kinds of environments are in demand.

In addition to leveraging data, tech workplaces are on the cusp of merging the digital realm with physical space. This move towards seamless technology that anticipates behavior and needs and creates immersive experiences has the potential to transform the work experience. At the center of this evolution should be a commitment to engaging, equipping, and empowering individuals to excel, which requires developing flexible, technology-infused space solutions that accommodate a growing diversity of work styles, preferences and personalities.

The tech industry's increased focus on the human experience—from amenities to immersive technology—can be applied to workplaces in other sectors. While the next big technological advancement isn't set in stone, one thing is certain: Companies that wish to remain competitive and responsive in the future will need workplaces with the flexibility and personalization that allow their people to gather, connect, innovate, and simply be their best.

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Amy English is the director of interiors for HOK.

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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.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”

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