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New Rice study details how carbon capture could reduce AI data center emissions

by the numbers

A new report estimates that more than 90 percent of data center-related carbon dioxide emissions could potentially be mitigated through carbon capture and storage. Photo via Unsplash

A new study out of Rice University points to carbon capture and storage methods as pivotal solutions to addressing emissions from AI-driven data centers.

The study was authored by Hon Chung Lau, an adjunct professor in the Department of Chemical and Biomolecular Engineering at Rice University and founder of Low Carbon Energies LLC, and Steve C. Tsai, an energy transition consultant at Low Carbon Energies LLC, and published in the journal Energy & Fuels.

According to the study, U.S. data center power capacity could more than quadruple in five years, growing from 40 gigawatts in 2025 to 169 gigawatts by 2030. Without proper regulation of emissions, the report estimates that carbon dioxide produced by fossil-fuel power plants supplying electricity to data centers could grow at the same scale, increasing from 90 million metric tons to more than 404 million metric tons over the same time period.

The researchers analyzed publicly available data on announced U.S. data centers, which included energy sources, locations, and projected power capacity before estimating data center-related carbon emissions based on each state’s electricity mix. From there, they examined whether those emissions could be captured and stored underground in saline aquifers.

The team estimates that 34 states have enough saline aquifer storage capacity to store more than 100 years of projected data center-related carbon dioxide emissions beyond 2030. Aquifers could store an estimated 59 million metric tons of data center-related carbon dioxide, or about 66 percent of the sector’s emissions in 2025. However, that calculation could grow to 299 million metric tons, or about 74 percent of projected data center-related emissions by 2030.

The researchers found that more than 90 percent of data center-related carbon dioxide emissions could potentially be mitigated through carbon capture and storage when out-of-state storage options are included, even though they note that carbon capture isn’t the only solution.

“It does show that the geology exists to make a meaningful impact, especially in states where data center growth is strongest,” Lau said in a news release.

Rapid growth in states including Texas, Virginia, Pennsylvania, Ohio, Arizona, Colorado, Utah and Illinois was considered in the study. According to the findings, Texas would need to add 25 gigawatts of power capacity by 2030 to meet projected data center demand, as data centers require reliable electricity 24/7.

“Data centers are becoming one of the defining energy challenges of the AI era,” Lau added in the news release. “The question is not only whether we can build enough computing infrastructure, but whether we can power it in a way that is reliable, affordable and compatible with decarbonization goals.”

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Jane Stricker reflects on four years at HETI. Courtesy photo

Houston positioned to lead in Carbon Capture Utilization (CCU), study shows

The View From HETI

With global demand for energy production while lowering emissions continues to grow, Houston and the Gulf Coast region are uniquely positioned to lead with carbon capture, utilization and sequestration (CCUS). A new study developed by the Houston Energy Transition Initiative (HETI) in collaboration with Deloitte Consulting explores how the region can transform captured CO₂ into valuable products while supporting continued economic growth and industrial competitiveness.

Key takeaways from the report include:

Houston and the Gulf Coast are uniquely advantaged to utilize and store carbon.As a global hub for chemicals and refining industries, Houston has access to world-class infrastructure, a skilled workforce, and access to global markets. The region also has one of the nation’s highest concentrations of industrial CO2 and creates the opportunity to capture waste material streams to deliver lower carbon intensity products that continue to deliver economic benefits to the region.

While carbon capture and sequestration (CCS) projects continue to advance, CCU requires coordinated action across policy, infrastructure, technology and market demand to scale successfully. Utilization and sequestration are complementary strategies that support and protect investment deployments. CCS acts as an early foundation while markets and infrastructure evolve toward broader CO₂ utilization, and CCU is essential to developing low-carbon-intensity value chains and products.

“Our collaboration with Deloitte highlights how Houston and the Gulf Coast continue to build on the strengths that have long made our region an energy leader. Houston’s infrastructure, workforce, and industrial ecosystem uniquely position the region to scale CCU,” said Jane Stricker, Senior Vice President, Energy Transition, and Executive Director of HETI. “With supportive policy, continued innovation, and strong industry partnerships, we can accelerate CCU deployment, create new low-carbon value chains, and ensure Houston remains at the forefront of the global energy transition.”

Download the full report here.

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This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.
This move could help the U.S. cut emissions while staying competitive in the global energy game. Image via Getty Images

What EPA’s carbon capture and storage permitting announcement means for Texas

The View From HETI

Earlier this month, Texas was granted authority by the federal government for permitting carbon capture and storage (CCS) projects. This move could help the U.S. cut emissions while staying competitive in the global energy game.

In June, the U.S. Environmental Protection Agency (EPA) proposed approving Texas’ request for permitting authority under the Safe Drinking Water Act (SDWA) for Class VI underground injection wells for carbon capture and storage (CCS) in the state under a process called “primacy.” The State of Texas already has permitting authority for other injection wells (Classes I-V). In November, the EPA announced final approval of Texas’ primacy request.

Why This Matters for Texas

Texas is the headquarters for virtually every segment of the energy industry. According to the U.S. Energy Information Administration, Texas is the top crude oil- and natural-gas producing state in the nation. The state has more crude oil refineries and refining capacity than any other state in the nation. Texas produces more electricity than any other state, and the demand for electricity will grow with the development of data centers and artificial intelligence (AI). Simply put, Texas is the backbone of the nation’s energy security and competitiveness. For the nation’s economic competitiveness, it is important that Texas continue to produce more energy with less emissions. CCS is widely regarded as necessary to continue to lower the emissions intensity of the U.S. industrial sector for critical products including power generation, refining, chemicals, steel, cement and other products that our country and world demand.

The Greater Houston Partnership’s Houston Energy Transition Initiative (HETI) has supported efforts to bring CCUS to a broader commercial scale since the initiative’s inception.

“Texas is uniquely positioned to deploy CCUS at scale, with world-class geology, a skilled workforce, and strong infrastructure. We applaud the EPA for granting Texas the authority to permit wells for CCUS, which we believe will result in safe and efficient permitting while advancing technologies that strengthen Texas’ leadership in the global energy market,” said Jane Stricker, Executive Director of HETI and Senior Vice President, Energy Transition at the Greater Houston Partnership.

What is Primacy, and Why is it Important?

Primacy grants permitting authority for Class VI wells for CCS to the Texas Railroad Commission instead of the EPA. Texas is required to follow the same strict standards the EPA uses. The EPA has reviewed Texas’ application and determined it meets those requirements.

Research suggests that Texas has strong geological formations for CO2 storage, a world-class, highly skilled workforce, and robust infrastructure primed for the deployment of CCS. However, federal permitting delays are stalling billions of dollars of private sector investment. There are currently 257 applications under review, nearly one-quarter of which are located in Texas, with some applications surpassing the EPA’s target review period of 24 months. This creates uncertainty for developers and investors and keeps thousands of potential jobs out of reach. By transferring permitting to the state, Texas will apply local resources to issue Class VI permits across the states in a timely manner.

Texas joins North Dakota, Wyoming, Louisiana, West Virginia and Arizona with the authority for regulating Class VI wells.

Is CCS safe?

A 2025 study by Texas A&M University reviewed operational history and academic literature on CCS in the United States. The study analyzed common concerns related to CCS efficacy and safety and found that CCS reduces pollutants including carbon dioxide, particulate matter, sulfur oxides and nitrogen oxides. The research found that the risks of CCS present a low probability of impacting human life and can be effectively managed through existing state and federal regulations and technical monitoring and safety protocols.

What’s Next?

The final rule granting Texas’ primacy will become effective 30 days after publication in the Federal Register. Once in effect, the Texas Railroad Commission will be responsible for permitting wells for carbon capture, use and storage and enforcing their safe operation.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

HETI has supported efforts to bring CCUS to a broader commercial scale since the initiative’s inception. Image via Getty Images

Texas gets one step closer to CCUS permitting authority

The View From HETI

This month, the U.S. Environmental Protection Agency (EPA) announced its proposed approval of Texas request for permitting authority under the Safe Drinking Water Act (SDWA) for Class VI underground injection wells for carbon capture, utilization and storage (CCUS) in the state. The State of Texas already has permitting authority for Class I-V injection wells. Granting authority for Class VI wells recognizes that Texas is well positioned to protect its underground sources of drinking water while also advancing economic opportunity and energy security.

“In the Safe Drinking Water Act, Congress laid out a clear vision for delegating decision-making from EPA to states that have local expertise and understand their water resources, geology, communities, and opportunities for economic growth,” said EPA Administrator Lee Zeldin in a news release. “EPA is taking a key step to support cooperative federalism by proposing to approve Texas to permit Class VI wells in the state.”

The Greater Houston Partnership’s Houston Energy Transition Initiative (HETI) has supported efforts to bring CCUS to a broader commercial scale since the initiative’s inception. Earlier this year, HETI commissioned a “study of studies” by Texas A&M University’s Energy Institute and Mary K. O’Connor Process Safety Center on the operational history and academic literature of CCUS safety in the United States. The report revealed that with state and federal regulations as well as technical and engineering technologies available today, CCUS is safe and presents a very low risk of impacts to human life. This is useful research for stakeholders interested in learning more about CCUS.

“The U.S. EPA’s proposal to approve Texas’ application for Class VI well permitting authority is yet another example of Texas’ continued leadership in meeting the dual challenge of producing more energy with less emissions,” said Jane Stricker, Senior Vice President of Energy at the Greater Houston Partnership and Executive Director of the Houston Energy Transition Initiative. “We applaud the U.S. EPA and Texas Railroad Commission for their collaborative efforts to ensure the supply of safe, affordable and reliable energy, and we call on all stakeholders to voice their support for the application during the public comment period.”

The U.S. EPA has announced a public comment period that will include a virtual public hearing on July 24, 2025 from 5-8 pm and conclude on July 31, 2025.

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This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

In all, DOE recently allocated $518 million to 23 CCUS projects in the U.S. Photo via Getty Images

DOE dishes out funding to 2 Houston carbon caption projects

ccus news

Two Houston companies have received federal funding to develop carbon capture and storage projects.

Evergreen Sequestration Hub LLC, a partnership of Houston-based Trace Carbon Solutions and Jacksonville, Mississippi-based Molpus Woodlands Group, got more than $27.8 million from the U.S. Department of Energy for its Evergreen Sequestration Hub project in Louisiana. DOE says the project is valued at $34.8 million.

The hub will be built on about 20,000 acres of timberland in Louisiana’s Calcasieu and Beauregard parishes for an unidentified customer. It’ll be capable of storing about 250 million metric tons of carbon dioxide.

Trace Carbon Solutions, a subsidiary of Trace Midstream Partners, is developing CCS assets and supporting midstream infrastructure across North America. Molpus, an investment advisory firm, buys, manages, and sells timberland as an investment vehicle for pension funds, college endowments, foundations, insurance companies, and high-net-worth investors.

Another Houston company, RPS Expansion LLC, has received $9 million from the DOE to expand the River Parish Sequestration Project. Following the expansion, the project will be able to store up to 384 million metric tons of carbon dioxide. The CCUS hub is between Baton Rouge and New Orleans.

DOE says the River Parish expansion is valued at $11.8 million.

Also receiving DOE funding is a CCUS project to be developed off the coast of Corpus Christi. The developer is the Southern States Energy Board, based in Peachtree Corners, Georgia.

DOE is chipping in more than $51.1 million for the nearly $64 million hub. It’s estimated that about 35 million metric tons of carbon dioxide emissions are released each year from about 50 industrial and power facilities within a 100-mile radius of Mustang Island. Port Aransas is located on the 18-mile-long island.

In all, DOE recently allocated $518 million to 23 CCUS projects in the U.S.

“The funding … will help ensure that carbon storage projects — crucial to slashing harmful carbon pollution — are designed, built, and operated safely and responsibly across all phases of development to deliver healthier communities as well as high-quality American jobs,” Brad Crabtree, assistant DOE secretary for fossil energy and carbon management, says in a news release.

Under its deal with Occidental, pipeline company Enterprise Products Partners will create a carbon dioxide pipeline system for 1PointFive’s Bluebonnet Sequestration Hub. Photo via 1pointfive.com

Oxy, Enterprise Products Partners to collaborate on carbon dioxide pipeline system for Texas project

coming soon

Occidental Petroleum’s carbon capture, utilization, and sequestration (CCUS) subsidiary has tapped another Houston-based company to develop a carbon dioxide pipeline and transportation network for one of its CCUS hubs.

Under its deal with Occidental, pipeline company Enterprise Products Partners will create a carbon dioxide pipeline system for 1PointFive’s Bluebonnet Sequestration Hub, which will span more than 55,000 acres in Chambers, Liberty, and Jefferson counties. The hub will be able to hold about 1.2 billion metric tons of carbon dioxide. The new pipeline network will be co-located with existing pipelines.

Enterprise Products Partners also will supply fee-based services for transporting CO2 emissions from industrial facilities near the Houston Ship Channel to the Bluebonnet hub.

“This agreement pairs our expertise managing large volumes of CO2 with Enterprise’s decades of midstream experience to bring confidence to industrial customers seeking a decarbonization solution,” Jeff Alvarez, president of 1PointFive’s sequestration business, says in a news release.

The Bluebonnet Sequestration Hub recently received funding from the U.S. Department of Energy (DOE) to help cover development costs.

“This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered,” Alvarez said in 2023. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”

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Houston researchers map data center growth, trends in new interactive platform

data center development

Have you ever wondered why data centers are located where they are?

Energy experts at Rice University’s Center for Energy Studies (CES) have developed a tool to help answer that question.

Rice researchers at the CES, part of Rice’s Baker Institute for Public Policy, have created an interactive map to track data center growth and energy infrastructure in the United States.

Kenneth B. Medlock III, Miaomiao Rimmer, Anmol Mital and Beck Edwards developed the tool, known as the U.S. Data Centers and Infrastructure map. It aims to provide a comprehensive view of the factors shaping where data centers are located, from power and water costs to infrastructure, public policy and local sentiment.

“The map lets you see why data centers are being built where they are by connecting the dots between infrastructure, power costs, water availability, public policy and public sentiment across different regions,” Medlock, senior director at CES, said in a news release. “You can zoom out and look at the whole U.S. to easily realize why data centers locations are being chosen—the price of power and water matters.”

The tool maps information on data center locations against other factors like energy, water, economics and politics. It also shows existing infrastructure in the area, including electric transmission lines, power plants, and fiber-optic networks, and provides information on water stress, electricity prices and natural gas prices.

According to Rice, the map will be updated in real time and currently includes information on existing data centers and proposed data centers.

Additionally, the map provides county-level analyses of news coverage and media to explore local attitudes towards the development of data centers in communities. Users can also explore political and demographic information.

According to the Pew Research Center, most data centers that are being built will appear in rural areas, with Virginia, Texas and Georgia leading the way in the number of planned facilities. Pew’s 2026 findings also noted that 38 percent of Americans live within 5 miles of at least one operational data center.

Meanwhile, Houston and Texas are poised for continued data center growth. Other reports predict that Houston’s data center capacity could more than double by 2028. Texas is home to an estimated 400-plus data centers, according to commercial real estate services provider CBRE.

UH team lands $2.9M DOE grant to develop next-gen magnets with AI

critical minerals

University of Houston researchers are leading an effort to find alternatives to a key element of the U.S. economy.

A UH-led coalition is exploring the use of AI to design and manufacture next-generation permanent magnets for the energy and industrial sectors. The project seeks to develop new, more sustainable magnets that reduce U.S. reliance on vulnerable foreign sources of critical minerals, primarily China.

A nearly $2.9 million grant from the U.S. Department of Energy supports the work.

“Rare earth elements, critical minerals, and magnets are indispensable to American energy, industry, and national security,” Conner Prochaska, director of the Advanced Research Projects Agency–Energy, said in a news release. “These projects will accelerate domestic mineral discovery and develop ultra-powerful magnets to mobilize U.S. critical mineral reserves, safeguard supply chains, and protect American energy and economic interests.”

Over the three-year grant period, principal investigator Jakoah Brgoch, a chemistry professor at UH, will head the Guided AI for Magnetic Boride/Carbide Intermetallic Technologies (GAMBIT) project. Brgosh was one of seven new senior members from UH named to the National Academy of Inventors earlier this year.

Other members of the team include Joshua Bocarsly, an assistant professor in the UH chemistry department; scientists at Rice University; and Houston-based startup Newfound Materials, which occupies space at Greentown Labs.

The UH-led team aims to surpass the properties of neodymium iron boron, the current industry-standard material for high-performance permanent magnets. These magnets are vital components in electric vehicles, industrial motors, generators, electronics and other advanced technologies.

“Strong magnets are used all over our economy. For example, many modern air-conditioning systems rely on permanent-magnet motors to drive compressors and blower fans,” Brgoch said.

“This has been a longstanding challenge to think about how we replace these magnets with high-performing and more reliable materials, and optimization by just replacing elements is not working,” Brgoch added. “Our goal is to use AI to find entirely new materials while simultaneously balancing these supply constraint concerns.”

The research team will work on discovering and testing potential magnet replacements. According to UH, the project’s ultimate goal is to commercialize the magnets through a new startup or by expanding Newfound Materials’ business units. The local startup has developed a predictive engine for materials research and development.

10 can't-miss events at Houston Energy and Climate Week 2026

where to be

Editor's note: Houston Energy and Climate Week returns for its third year, Sept. 12–18, with panels, happy hours, pitch days and tours focused on the energy transition.

The Ion District will host many of the week's events. Here are details on some can't-miss, signature events and how to register. Find the full schedule here. Please note: this article may be updated to add more events.

Sept. 13 — The & Awards

Kick off the week by celebrating Houston honorees leading the future of energy at the & Awards. The & Awards will honor Zay Zeidman, chairman of Houston First and managing partner of Altitude Ventures; The University of Houston's Renu Khator and Ramanan Krishnamoorti; Maryanne Maldonado, CEO of the World Affairs Council; and Fervo Energy co-founders Tim Latimer (CEO) and Jack Norbeck (CTO). The inaugural posthumous Lifetime Ambassador Award will honor former Houston Mayor Sylvester Turner, and this year’s Allies in Energy grant recipients will also be recognized. The evening will include a fireside chat, an immersive gallery, live music, passed hors d'oeuvres, Champagne and plenty of networking opportunities.

This event is Sunday, Sept. 13, from 6-9 p.m. at ARTECHOUSE Houston. Register here.

Sept. 14 — Brews on the Bayou

Head to Saint Arnold Brewery for a more laid-back kickoff event. Grab a beer and take in a live conversation with Paul Hobby, managing director of Genesis Park, and Katie Mehnert, CEO of The Bee Suite and co-founder of HECW. Rice University's Aaron Pomerantz will moderate the discussion. Then hear a live performance from AY Young.

This event is Monday, Sept. 14, from 6-9 p.m. at Saint Arnold Brewery. Register here.

Sept. 14–18 — Sip For Sustainability

Enjoy a signature cocktail at five H Town Restaurant Group spots each night of Houston Energy and Climate Week. A portion of every purchase will go toward Allies in Energy, which supports education, collaboration, and community programs that drive a more sustainable future. Participating eateries include Hugo's, Xochi, Uber, Zaranda and Caracol.

These events begin Monday, Sept. 14, from 3-5 p.m. Find more information on each day's happy hour here.

Sept. 15 — HTX Tech Tours

HECW will present two Tech Tours this year, offering attendees a closer look at the region's climatech scene. The Metro Innovation Tour & Market will visit Sugar Land Town Square, Shell Technology Center Houston, SLB West Houston Campus, University of Houston at Sugar Land, Ambrosia Space, NanoTech Materials and Syzygy Plasmonics. The Bay City South Innovation Tour will visit Sugar Land Town Square and Erthos Project Bravo in Matagorda County. Both tours will head to Astros Night at Daikin Park to wrap up the day.

These events are Tuesday, Sept. 15. Find more information here.

Sept. 15 — Meet the Activate Houston Cohort 2026 Fellows

Meet Activate's latest cohort, which was named this summer, and learn more about their hardtech and climate-focused solutions. Also meet founders from the organization’s 2025 cohort during Houston Energy and Climate Startup Week.

This event is Tuesday, Sept. 15, from 5-7 p.m. at the Ion. Register here.

Sept. 15 – Cypher Pilotathon and Startup Showcase

Grab coffee and take in keynotes and panels featuring leaders from Amperon, Aramco Ventures, New Climate Ventures, Syzygy Plasmonics and many others during this signature event, this year under the theme “The NEW Energy Industrial Revolution.” After lunch, hear pitches from 31 ventures during the Pilotathon. This year's event will also feature a startup showcase with interactive booths where attendees can meet founders and see demonstrations, plus an industry hub where corporates and investors can engage with emerging technologies and identify the pilots they want to move forward with.

This event is Tuesday, Sept. 15, from 9 a.m.-5 p.m. at POST Houston. Get tickets here.

Sept. 15 — Houston Astros Energy Night

Catch a game and chat with fellow clean energy enthusiasts during Houston Astros Energy Night. The 'Stros take on the Kansas City Royals. A bonus? Dollar Hot Dog Night at Daikin Park.

This event is Tuesday, Sept. 15, starting at 7:10 p.m. at Daikin Park. Get tickets here.

Sept. 16 — Greentown Labs Climatech Summit

Entrepreneurs, investors, corporate leaders, policymakers and philanthropists will head to Houston this month for the annual Greentown Climatetech Summit. Hear from Greentown CEO Georgina Campbell Flatter and keynote speaker Tim Latimer, CEO and co-founder of Houston geothermal unicorn Fervo Energy, plus numerous other engaging panels at the Ion. Then head to Greentown Labs for an open house and startup showcase, where attendees can meet some of the climatech incubators' members, before taking in the startup pitch competition followed by happy hour over at the Continental Club.

This event is Wednesday, Sept. 16, from 8 a.m.–9 p.m. at multiple locations. Register here.

Sept. 17 — Rice Alliance Energy Tech Venture Forum

Hear from clean energy startups from around the world at the 23rd annual Energy Tech Venture Forum. In addition to the pitches, this event will also host keynotes from Sean Maher, chief economist at Phillips 66, and Ira Ehrenpreis, founder and managing partner of DBL Partner. Panels will focus on technologies, infrastructure and commercialization strategies needed to deploy breakthrough innovations at scale. Following the event, the Rice Alliance will also name its annual “Most Promising” startup.

This event is Thursday, Sept. 17, from 7:30 a.m.-5 p.m. at Rice University’s Jones Graduate School of Business. Register here.

Sept. 18 — Halliburton Labs Finalists Pitch Day

Hear from Halliburton Labs' latest cohort of entrepreneurs. The incubator aims to advance the companies’ commercialization with support from Halliburton's network, facilities and financing opportunities. Its latest cohort includes one company from Texas.

This event is Friday, Sept. 18, from 8 a.m.-noon at The Ion. Register here.

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