hydropower

Houston energy storage company secures another $2M in federal funding

Houston-based Quidnet Energy has again secured funding from the DOE. Image via quidnetenergy.com

Earlier this month, the U.S. Department of Energy announced another $13 million in funding to seven projects that are developing hydropower as a clean energy source. A Houston startup made the list of recipients.

“For more than a century, Americans have harnessed the power of water to electrify our communities, and it’s a critical renewable energy source that will help us reach our climate goals,” U.S. Secretary of Energy Jennifer M. Granholm says in a news release. “President Biden’s Investing in America agenda will help to expand the use of hydropower, increasing access to affordable, clean power and creating good-paying jobs.”

Houston-based Quidnet Energy Inc. received a little over $2 million for its project, entitled "Energy Storage Systems for Overpressure Environments," which is taking place in East Texas. The company, founded in 2013, is using water storage to power carbon-free electric grid approach to energy. As the DOE notes, the "low-cost form of long-duration electricity storage uses existing wellbores, which offers an opportunity to repurpose legacy oil and gas assets," per the release.

It's not the first Quidnet has secured funding from the DOE. Last fall, the company earned a $10 million grant from the organization's Advanced Research Projects Agency-Energy, or ARPA-E, program. Quidnet is also venture backed, with its most recent raise, a $10 million series B round, closing in 2020 and including participation from Bill Gates-backed Breakthrough Energy Ventures and Canada-based Evok Innovations.

The DOE's other PSH, or pumped storage hydropower, grants were announced as follows.

  • The Electric Power Research Institute, based in Palo Alto, California, secured $2.3 million to test "a turbine/generator system designed to add power-generating infrastructure to non-powered dams" in Iowa, per the release.
  • Atlanta-based Emrgy received $1.6 million to "develop a turbine to generate hydropower at non-powered dams where the water drop is less than 30 feet or in low-flow conduits, such as existing irrigation canals," in Washington.
  • Another Atlanta company, Georgia Power Co. is getting just under $2.9 million to develop and deploy PSH facilities across the country with its utility-scale solution to retrofit traditional hydropower facilities to serve as PSH facilities. The site the company will demonstrate it's tech is in Salem, Alabama.
  • RCAM Technologies, based in Boulder, Colorado, will work on offshore PSH technology in San Pedro, California, with its $4 million grant.
  • Drops for Watts received $243,540 to "develop a low-impact, modular system to generate hydropower from existing irrigation infrastructure" in Sagle, Idaho.
  • In Atlanta, Turbine Logic will use its nearly $200,000 in funding to utilize digital twin technology "to better predict common maintenance needs in hydropower turbines."

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A View From HETI

Houston's data center scene has received its latest bullish forecast. Photo via serverfarmllc.com

The Houston market could more than double its data center capacity by the end of 2028, a new report indicates.

The report, published by commercial real estate services provider CBRE, says greater demand for data center capacity in the Houston area is being fueled by energy companies, along with large-scale cloud services and AI-driven tenants.

In the second half of 2025, the Houston market had 154 megawatts of data center capacity, which was on par with capacity in the second half of 2024. Another 28.5 megawatts of capacity was under construction during that period.

“Multiple providers are advancing new builds and redevelopments, including significant power upgrades to recently purchased buildings, underscoring long-term confidence even as the market works through elevated vacancy and uneven absorption,” CBRE says of Houston’s data center presence.

One project alone promises to significantly boost the Houston market’s data center capacity. Data center developer Serverfarm plans to use part of a $3 billion credit facility to build a 250-acre, AI-ready data center campus near Houston with a potential capacity of more than 500 megawatts. The Houston campus and two other Serverfarm projects are already leased to unidentified tenants, according to CoStar.

A 60-megawatt, AI-ready Serverfarm data center is under construction in Houston. The $137 million, 438,000-square-foot project, located near the former headquarters of computer manufacturer Compaq, is supposed to be completed in the third quarter of 2027.

Data Center Map identifies 59 data centers in the Houston area managed by 36 operators, including DataBank, Data Foundry, Digital Realty, IBM, Logix Fiber Networks, Lumen and TRG Datacenters. That compares with more than 180 data centers in Dallas-Fort Worth, more than 50 in the San Antonio area and 40 in the Austin area.

Texas is home to more than 400 data centers, according to Data Center Map.

In November, Google said it’s investing $40 billion to build AI data centers in West Texas and the Texas Panhandle.

“This is a Texas-sized investment in the future of our great state,” Gov. Greg Abbott said when Google’s commitment was announced. “Texas is the epicenter of AI development, where companies can pair innovation with expanding energy. Google's $40 billion investment makes Texas Google's largest investment in any state in the country and supports energy efficiency and workforce development in our state.”

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