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California co. announces fully sustainable, hydrogen-powered data center in Houston

The 1-gigawatt site will be constructed at a cost of approximately $8 billion. Photo courtesy ECL

The Houston area will soon be home to what's being lauded as the first fully sustainable 1-gigawatt data center on a 600-acres site east of Houston.

Data center-as-a-service company ECL, headquartered in Mountain View, California, announced its plans to build the ECL TerraSite-TX1. Hardware and cloud service company Lambda will serve as its first tenant. Lambda and other AI leaders will get access to necessary space and power for the next wave zero emission innovations.

Phase 1 of TerraSite-TX1 will be complete by summer of 2025 with a cost of approximately $450 million. The 50 megawatt of data center capacity will be utilized by data center cloud and AI cloud operators. The 1-gigawatt site will be constructed at a cost of approximately $8 billion. The funding will come from ECL and financial partners.

ECL Terrasite-TX1 comes at a needed time for Texas with The Electric Reliability Council of Texas stating on June 12 that the state’s power grid needs will grow approximately double by 2030. This is due in part to the growth of data centers and AI. The ECL Terrasite-TX1 is built to help eliminate the stress on the state’s power grid and help facilitate “state-level economic development and growth of the AI industry,” according to a news release.

ECL houston data centerThe project will span over 600 acres east of Houston. Rendering courtesy ECL

ECL data centers are built to be modular, which allows for expansion in 1-megawatt increments. They are “ built to suit” and delivered in less than 12 months, which is shorter than the industry standard of 36 to 48.

“While others talk about delivering off-grid, hydrogen-powered data centers in five, ten, or 20 years, only ECL is giving the AI industry the space, power, and peace of mind they and their customers need, now,” Yuval Bachar, co-founder and CEO of ECL, says in a news release. “The level of innovation that we have introduced to the market is unprecedented and will serve not only us and our customers but the entire data center industry for decades to come.”

ECL’s ECL-MV1 is the world’s first off-grid, hydrogen-powered modular data center that operates 24/7 with zero emissions, less noise, and a negative water footprint that replenishes water to the community. ECL-MV1 offers a 10x increase in “energy efficiency with a power usage effectiveness of 1.05 and a 7-times improvement in data density per rack, which is ideal for AI high-density demand” according to the release.

“The data center technology committed to by ECL is truly transformative in the industry,” Lambda's Vice President for Data Center Infrastructure Ken Patchett adds. “We believe ECL’s technology could unlock a powerful and eco-conscious foundation for AI advancement. This new infrastructure could give researchers and developers essential computational resources while drastically reducing the environmental impact of AI operations.”

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A View From HETI

Rheom Materials turned heads in Milan last month with a collection centered around Shorai, its sugar-based leather alternative. Photo courtesy Rheom Materials.

Last month, Houston-based Rheom Materials and India’s conscious design studio Econock unveiled a collaborative capsule collection that signaled more than just a product launch.

Hosted at Lineapelle—long considered the global epicenter of the world's premier leather supply chain—in the vaulted exhibition halls of Rho-Fiera Milano, the collection centered around Rheom’s 91 percent bio-based leather alternative, Shorai.

It was a bold move, one that shifted sustainability from a concept discussed in panel sessions to garments that buyers could touch and wear.

The collection featured a bomber-style jacket, an asymmetrical skirt and a suite of accessories—all fabricated from Shorai.

The standout piece, a sculptural jacket featuring a funnel neck and dual-zip closure, was designed for movement, challenging assumptions about performance limitations in bio-based materials. The design of the asymmetrical skirt was drawn from Indian armored warrior traditions, according to Rheom, with biodegradable corozo fasteners.

Built as a modular wardrobe rather than isolated pieces, the collection reflects a shared belief between Rheom and Econock in designing objects that adapt to daily life, according to the companies.

The collection was born out of a new partnership between Rheom and Econock, focused on bringing biobased materials to the market. According to Rheom, the partnership solves a problem that has stalled the adoption of many next-gen textiles: supply chain friction.

While Rheom focuses on engineering scalable bio-based materials, New Delhi-based Econock brings the complementary design and manufacturing ecosystem that integrates artisans, circular materials and production expertise to translate the innovative material into finished goods.

"This partnership removes one of the biggest barriers brands face when adopting next-generation materials,” Megan Beck, Rheom’s director of product, shared in a news release. “By reducing friction across the supply chain, Rheom can connect brands directly with manufacturers who already know how to work with Shorai, making the transition to more sustainable materials far more accessible.”

Sanyam Kapur, advisor of growth and impact at Econock, added: “Our partnership with Rheom Materials represents the benchmark of responsible design where next-gen materials meet craft, creativity, and real-world scalability.”

Rheom, formerly known as Bucha Bio, has developed Shorai, a sustainable leather alternative that can be used for apparel, accessories, car interiors and more; and Benree, an alternative to plastic without the carbon footprint. In 2025, Rheom was a finalist for Startup of the Year in the Houston Innovation Awards.

Shorai is already used by fashion lines like Wuxly and LuckyNelly, according to Rheom. The company scaled production of the sugar-based material last year and says it is now produced in rolls that brands can take to market with the right manufacturer.

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This article originally appeared on our sister site, InnovationMap.

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