New report predicts major data center boom in Texas by 2028

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A new report predicts that Texas will be home to 30 percent of the U.S. data center market by 2028. Photo via Chevron.com

Data centers are proving to be a massive economic force in Texas.

For instance, a new report from clean energy company Bloom Energy predicts Texas will see a 142 percent increase in its market share for data centers from 2025 to 2028. That would be the highest increase of any state.

Bloom Energy expects Texas to exceed 40 gigawatts of data-center capacity by 2028, representing a nearly 30 percent share of the U.S. market. A typical AI data center consumes 1 to 2 gigawatts of energy.

“Data center and AI factory developers can’t afford delays,” Natalie Sunderland, Bloom Energy’s chief marketing officer, said in the report. “Our analysis and survey results show that they’re moving into power‑advantaged regions where capacity can be secured faster — and increasingly designing campuses to operate independently of the grid.”

“The surge in AI demand creates a clear opportunity for states that can adapt to support large-scale AI deployments at speed,” Sunderland adds.

Further evidence of the data center explosion in Texas comes from ConstructConnect, a provider of data and software for contractors and manufacturers. ConstructConnect reported that in the 12-month span through November 2025, data-center construction starts in Texas accounted for $11 billion in spending. At $12.5 billion, only Louisiana surpassed the Texas total.

Capital expenses for U.S. data centers were expected to surpass $425 billion last year, according to ratings agency S&P Global.

ConstructConnect also reports that Texas is among five states collectively grabbing 80 percent of potential data center construction starts. Currently, Texas hosts around 400 data centers, with close to 60 of them in the Houston market.

A large pool of data-center construction spending in Texas is flowing from Google, which announced in November that it would earmark $40 billion for new AI data centers in the state.

“Texas leads in AI and tech innovation,” Gov. Greg Abbott proclaimed when the Google investment was unveiled.

Other studies and reports lay out just how much data centers are influencing economic growth in the Lone Star State:

A study by Texas Royalty Brokers indicates Texas leads the U.S. with 17 clusters of AI data centers. The study measured the density of AI data centers by counting the number of graphics processing units (GPUs) installed in those clusters. GPUs are specialized chips built to run AI models and perform complex calculations.
Citing data from construction consulting company FMI, The Wall Street Journal reported that spending on construction of data centers is expected to rise 23 percent in 2026 compared with last year. Much of that construction spending will happen in Texas. In the 12 months through November 2025, the average data center cost $597 million, according to ConstructConnect.
Data published in 2025 by commercial real estate services company Cushman & Wakefield shows three Texas markets — Austin, Dallas and San Antonio — boast the lowest construction costs for data centers among the 19 U.S. markets that were analyzed. The mid-range of costs in that trio of markets is roughly $10.65 million per megawatt. Houston isn’t included in the data.

Although Houston isn’t cited in the Cushman & Wakefield data, it nonetheless is playing a major role in the data-center boom. Houston-area energy giants Chevron and ExxonMobil are chasing opportunities to supply natural gas as a power source for data centers, for example.

“As Houston rapidly evolves into a hub for AI, cloud computing, and data infrastructure, the city is experiencing a surge in data-center investments driven by its unique position at the intersection of energy, technology, and innovation,” says the Greater Houston Partnership.

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Catalyze has teamed up with Cushman & Wakefield to expand installation of solar panels and battery storage technology. Photo courtesy of Catalyze

Houston renewable energy developer teams up with global commercial real estate biz

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Houston-based Catalyze, a developer of independent power systems, has teamed up with commercial real estate services powerhouse Cushman & Wakefield to expand installation of solar panels and battery storage technology at U.S. commercial and industrial properties.

The two companies say the partnership will help owners and tenants of office buildings, warehouses, and other commercial properties reduce utility costs, boost operating income, achieve environmental goals and ease stress on the power grid.

“This partnership marks a significant step forward in our mission to accelerate the adoption of renewable energy among commercial and industrial customers, benefiting both tenants and building owners,” Jared Haines, CEO of Catalyze, says in a news release.

The partnership will enable Cushman & Wakefield to decrease greenhouse gas emissions at facilities it manages for clients as well as its own corporate offices. The real estate sector accounts for about 40 percent of greenhouse gas emissions around the world.

“Our strategic partnership with Catalyze is a testament to our shared commitment to decarbonize the built environment by being at the forefront of the clean energy revolution,” says Jessica Francisco, Cushman & Wakefield’s chief sustainability officer. “Together, we are poised to advance the adoption of solar and storage technologies while driving down costs for our clients.”

In May, Catalyze announced that it secured $100 million in financing from NY Green Bank to support a 79 megawatt portfolio of community distributed generation solar projects across the state of New York.

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Houston startup debuts sustainable, bio-based 'leather' fashions

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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.

Houston energy co. names new COO to scale offshore decommissioning

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Houston-based Promethean Energy has named a new COO as it looks to scale.

Martyn Fear, former CEO of Altamesa Energy Canada Inc., will assume the role, the company announced last week. He brings decades of experience at energy companies such as BP and Maersk Oil and has held board positions at several private equity and venture-backed firms.

“Promethean has built a differentiated platform for managing and retiring late-life assets safely, efficiently, and responsibly,” Fear said in a news release. “The industry is facing a structural shift as decommissioning moves to the forefront, and the opportunity to combine operational excellence, disciplined project delivery, and innovative commercial models is incredibly compelling."

Promethean has developed an environmentally sustainable, integrated model for late-life asset management and offshore well decommissioning. Fear will oversee day-to-day operations at Promethean and the execution of this integrated operator-service model as the company looks to scale and expand to new markets.

“Martyn is a proven leader with a deep operational track record and a passion for building high-performance, safety-first organizations,” Aditya Singh, Promethean's CEO, added in the release. “As Promethean enters its next phase—scaling our integrated operator-service model and delivering first-time-right decommissioning at pace—his experience in transforming complex asset portfolios and leading global teams makes him the ideal COO to drive operational execution while we continue to advance our strategic vision.”

Last May, the company successfully decommissioned offshore orphaned wells in the Matagorda Island lease area. In November, it also announced that it had completed a multi-client project to safely plug and abandon an orphaned well on a storm-damaged platform in the South Timbalier lease area.

Both projects were based in the Gulf of Mexico, where Promethean is looking to grow.

Fervo taps new geothermal site and more energy transition news to know

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Editor's note: We're looking back at the biggest energy transition headlines from the second half of February, including Fervo's hottest well to date and the future of data centers in Texas. Below are the five most-read EnergyCapital stories from February 16-28, 2026.

1. Fervo taps into its hottest-ever geothermal reservoir

Fervo Energy has unlocked multigigawatt potential from a new geothermal energy site. Photo courtesy Fervo Energy.

Things are heating up at Houston-based geothermal power company Fervo Energy. Fervo recently drilled its hottest well so far at a new geothermal site in western Utah. Fewer than 11 days of drilling more than 11,000 feet deep at Project Blanford showed temperatures above 555 degrees Fahrenheit, which exceeds requirements for commercial viability. Fervo used proprietary AI-driven analytics for the test. Continue reading.

2. Texas could topple Virginia as biggest data-center market by 2030, JLL report says

A new report shows the role Texas could play as the data-center sector enters "hyperdrive." Photo via JLL.com.

Everything’s bigger in Texas, they say—and that phrase now applies to the state’s growing data-center presence. A new report from commercial real estate services provider JLL says Texas could overtake Northern Virginia as the world’s largest data-center market by 2030. Northern Virginia is a longtime holder of that title. Continue reading.

3. Texas claims No. 1 spot on new energy resilience report

Texas outpaced the rest of the country in a new energy resilience report, despite grid challenges and rising AI demand. Photo courtesy of ERCOT

A new report by mineral group Texas Royalty Brokers ranks Texas as the No. 1 most energy-resilient state. The study focused on four main sources of electricity in hydroelectric dams, natural gas plants, nuclear reactors and petroleum facilities. Each state was given an Energy Resilience Score based on size and diversity of its power infrastructure, energy production and affordability for residents. Continue reading.

4. Texas' oil and gas foundation could boost its geothermal future, UH says

A new UH white paper says that Texas is poised to lead advanced geothermal due to its oil and gas skills and capacity. Photo via UH.edu.

Equipped with the proper policies and investments, Texas could capitalize on its oil and gas infrastructure and expertise to lead the U.S. in development of advanced geothermal power, a new University of Houston white paper says. Continue reading.

5. HETI leader reflects on four years focused on the energy transition

Jane Stricker reflects on four years at HETI. Courtesy photo

It’s hard to believe only four years have passed since I joined the Greater Houston Partnership to lead the Houston Energy Transition Initiative. We talk about COVID years feeling simultaneously like just yesterday and a lifetime ago, and my time at HETI feels quite similar. The energy and climate landscape has evolved dramatically over the last few years, but one constant has endured…Houston remains at the heart of the energy industry. Continue reading.

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