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Why Microsoft is investing in Houston as an energy transition leader

The Energy Transition Center for Excellence is housed out of Microsoft Technology Center in Houston. Photo courtesy of Microsoft

Houston is known as the energy capital of the world to many, and major players — from the mayor to corporations — are determined to translate that leadership to the energy transition.

With that in mind, Microsoft has launched its own hub to celebrate the movement — the Energy Transition Center for Excellence, which was announced this spring. The new center, based in the Microsoft Technology Center in Houston, exists to support companies as they evolve their business to be more sustainable and climate-conscious.

“We are proud to have a vast and rich ecosystem of partners that actively co-develop sustainability solutions,” Darryl Willis, corporate vice president of Microsoft’s Energy and Resources Industry tells EnergyCapital via email. “Our featured partners demonstrate what is possible across the energy transition value chain from decarbonization to new clean energy solutions.”

Microsoft is behind platforms such as Microsoft Cloud, AI, machine learning, the Internet of Things, and mixed reality, all of which can help to “power transformation,” as Willis puts it.

According to research provider BloombergNEF, it will take an investment of $5.8 trillion into energy transition to achieve a global net-zero by 2050. Not every company is committed to spending the necessary funds to make the sometimes-massive changes to their operations.

But Willis lists nine partners that have actively been collaborating with Microsoft to achieve net-zero goals. Each boasts an exhibit at the Energy Transition Center for Excellence. There, customers have the opportunity to see precisely how Microsoft and those companies are working to make their operations healthier for the planet, from decarbonization to new, clean energy solutions.

For example, Bentley is working with Microsoft to provide digital solutions in offshore wind power. EY is furthering decarbonization with its Hydrogen Pathways, a molecular accounting platform that creates a “holistic view for hydrogen production.” Terra Praxis is behind REPOWER, a standardized system that is helping to repurpose coal plants to create clean energy.

Customers can make an appointment to experience a new energy future through immersive, interactive exhibits built by Microsoft’s partners.

“Many of the energy customers we support on their decarbonization and sustainability efforts are either headquartered or have significant presence in Houston, making it an ideal location for deeper collaboration as we tackle this significant challenge facing the world,” says Willis.

With the city becoming a hub for the incubation of climate tech, Houston is inching ever closer to becoming the Energy Transition Capital of the World.

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A View From HETI

Fervo Energy claimed a top 10 spot on Time magazine and Statista’s new list of America’s Top GreenTech Companies of 2025. Photo via Getty Images.

The accolades keep rolling in for Houston-based Fervo Energy, a producer of geothermal power.

Fervo lands at No. 6 on Time magazine and Statista’s new list of America’s Top GreenTech Companies of 2025. The ranking recognizes sustainability-focused companies based on factors such as impact, financial strength, and innovation.

Time notes that Fervo broke ground in 2023 in Utah on what the company claims will be the world’s largest geothermal plant. The plant is scheduled to start supplying carbon-free electricity to the grid next year and to reach its 400-megawatt capacity in three years.

“Technologies like this only make a difference if we deploy them at large-scale in a way that can reduce carbon emissions and increase the reliability of the grid,” Fervo CEO Tim Latimer told Time in 2023.

The startup was named North American Company of the Year by research and consulting firm Cleantech Group for 2025. Fervo topped the Global Cleantech 100, Cleantech Group’s annual list of the world’s most innovative and promising cleantech companies.

Last year, Fervo also made Time’s list of the 200 Best Inventions of 2024. Fervo was recognized in the green energy category for its FervoFlex geothermal power system.

Founded in 2017, Fervo is now a unicorn, meaning its valuation as a private company exceeds $1 billion. The startup’s valuation is estimated at $1.4 billion. According to PitchBook data, the company raised $634 million in the fourth quarter of 2024.

In all, eight Houston-area companies appear among the top 250 greentech companies ranked by Time and Statista. Other than Fervo, they are:

  • No. 43 Lancium Technologies, an energy storage and distribution company
  • No. 50 Solugen, a producer of sustainable chemicals.
  • No. 56 Quaise Energy, which specializes in terawatt-scale geothermal power.
  • No. 129 Plus Power, a developer, owner and operator of battery storage projects.
  • No. 218 Dream Harvest, which promotes sustainable vertical farming.
  • No. 225 Cemvita, which uses synthetic biology to convert carbon emissions into bio-based chemicals.
  • No. 226 Syzygy Plasmonics, which decarbonizes chemical production.
Vermont-based BETA Technologies claimed the No. 1 spot. The company manufactures electric aircraft.

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