Trump continues to champion data center growth despite rising voter concerns

Data Development

Bipartisan concerns are rising around the data center boom. Photo via serverfarmllc.com

President Donald Trump, speaking alongside cryptocurrency leaders at the White House, made a statement that Republican and Democratic candidates alike wouldn't touch.

“If I were the mayor of a town or the governor of a state, and I had a chance to get a big plant in, an AI plant or a data center,” Trump said, “I would absolutely want it because the jobs are enormous and the money paid, the taxes paid, are just enormous.”

It's not the kind of message anyone is using in competitive midterm races.

The race to build data centers, which power artificial intelligence and cloud computing, has run aground amid frustration from voters who don't want to live near the massive warehouse campuses. Even the Senate Republicans' campaign arm warned that anger over data centers — some of which dwarf football stadiums and use more energy than small cities — could cost them a seat.

Opposition stretches across the political spectrum because of fears that the behemoths will jack up electricity bills, drain people's water wells, create unhealthy amounts of air and noise pollution and forever change a community's character — all while getting lucrative tax breaks from states competing for their business.

Trump has framed data centers as a necessary component of a top national and economic security priority: winning the AI race against China. However, he also has acknowledged concern over rising electricity bills, previously saying “it’s only fair” for the companies to shoulder their costs.

He also suggested this week that data centers need “a little public relations help.” In recent months, he has gotten tech giants to sign a voluntary pledge to shield U.S. consumers from higher utility bills from data centers, even as he pushes to streamline the process for companies and utilities to build their own power plants.

But building power plants doesn't happen overnight, and the immediate political reality for candidates across the country is far different.

“It is yet another dimension in which the White House appears tone deaf — tone deaf at best and indifferent to the interest of other Republican candidates at worst,” said James Henson, the director of the Texas Politics Project at the University of Texas, Austin, a nonpartisan research organization.

Republican committee issues warning over data centers in Ohio

Statewide candidates from Nevada to Pennsylvania, both Republican and Democratic, are weaponizing data centers against their opponents, and candidates who absorb those attacks are subsequently trying to distance themselves from them.

In Ohio, a data center hot spot with closely contested races for governor and U.S. Senate, the National Republican Senatorial Committee warned in a memo Tuesday that Sen. Jon Husted is vulnerable to losing his seat because of the centers.

Democratic nominee Sherrod Brown is airing attack ads against Husted that call him the “face of data centers in Ohio” as people gather signatures for a statewide referendum to ban their construction.

The Republican memo said it's been a “sleeper issue for the entire election cycle.”

“Brown is using it because it works,” the NRSC said. “More than any other thing in this race, data centers are the anchor hanging around Husted’s neck. If he loses and data centers get the blame, politicians across the country will take notice — and they will not go near the next one.”

The memo suggested voters may balk at Democratic candidates who want to stop data center construction altogether in favor of a Republican candidate who only wants data centers built if a community approves it in a local vote and it pays for its own power, water and other utilities.

Most registered voters oppose building a data center in their area, according to a July Fox News poll.

Still, the issue falls behind other voter concerns, such as cost of living, as November looms. A Quinnipiac Poll conducted in June asked voters what issues were important in deciding who to vote for in U.S. House elections, and about 4 in 10 mentioned AI data centers.

Trump’s statement already put to use in Nevada race

In Nevada, Democrat Aaron Ford quickly tied Trump’s statement to Republican Gov. Joe Lombardo, characterizing them as being in “lockstep on data centers.”

In a statement, Ford said Trump and Lombardo are “Nevada data centers’ biggest cheerleaders” who “only care about catering to their ‘billionaire friends’ while Nevadans pay the price.”

Ford this week unveiled a policy platform in which he said he would halt new state tax breaks for data centers — he estimated them at $200 million currently — while auditing existing projects to ensure they are delivering on promises. He also said he would ensure data centers pay for their electricity needs, do not deplete Nevada’s water supply and help local governments negotiate strong benefits agreements with developers.

Texas' governor changed course and got a jab from Trump

Texas Gov. Greg Abbott, who last November celebrated Google’s announcement of a $40 billion investment there by calling the state “the epicenter of AI development,” is under attack from his Democratic challenger, Gina Hinojosa, over his pursuit of data center development.

Abbott has since changed course by promising tougher action, such as removing the state’s sales tax exemption and holding up projects to review their energy usage.

Trump criticized the shift, saying “I think it's a mistake” in a recent interview with Punchbowl News.

Asked about Trump's support for data centers, Abbott's office said the governor's “top priority is to protect Texans’ safety and quality of life and ensure the integrity of our power grid and water supply.”

“Simply put, Texans must come first,” Abbott's office said.

Data centers complicated Wisconsin governor race

While Trump embraces data centers, even some of his allies are using them for political attacks. U.S. Rep. Tom Tiffany, running for Wisconsin governor, released a TV ad this week branding his Democratic opponent as “Data Center David Crowley.”

The ad includes a clip of Crowley saying Wisconsin could become the “AI and data hub not only for the entire country, but for the entire globe.”

Crowley has said local communities must have veto authority while also calling data centers a part of the modern economy that could bring significant economic benefits to the state.

Tiffany, who Trump has endorsed, has also said positive things about data centers. In January, Tiffany called data centers “exciting new technology,” in an interview with PBS Wisconsin. And last December, he voted for a bipartisan bill known as the SPEED Act, which is designed to accelerate construction of new AI infrastructure projects like data centers. It hasn't passed the Senate.

Neither Tiffany nor Crowley support a moratorium on new data center construction.

Tiffany has called for repealing the state tax incentive for data centers, while Crowley has not. They both have called for stricter regulation.

Crowley, at an event Wednesday where he received the endorsement of the environmental group Clean Wisconsin, downplayed the attacks Tiffany has made against his data center position.

“He’s getting very good at saying one thing and doing something different,” Crowley said, pointing to Tiffany’s votes in support of the SPEED Act.

“What Congressman Tom Tiffany’s doing is lying because he’s trying to run away from his record in Congress,” Crowley said.

Texas has also officially claimed the No. 1 spot in the U.S. for existing and under-construction data center capacity, according to the report. Photo courtesy JLL

Houston’s data center capacity set to grow 80%, report says

data findings

Houston stands to benefit from constraints dogging data center markets elsewhere in Texas, a new report indicates. This comes against the backdrop of Texas surpassing Virginia as the country’s top state for data centers — and amid deepening opposition to these facilities.

The report, published by commercial real estate services provider JLL, foresees Houston continuing to gain traction in data center development as occupants seek “scalable alternatives” to Texas markets experiencing supply-and-demand imbalances.

The Houston area currently hosts data centers with 287 megawatts of capacity, well below capacity levels in the Dallas-Fort Worth, Austin-San Antonio and West Texas markets.

However, the region is witnessing a spike in capacity, with 390 megawatts of capacity under construction, according to the report. Counting newly built data centers, Houston would be home to 677 megawatts of data center capacity, an 80 percent increase from the current inventory, the report says.

Developers target West Houston for large-scale data centers

Developers increasingly are evaluating West Houston and surrounding areas for large-scale campuses capable of supporting behind-the-meter power, according to the report. Data center development in the region is likely to remain concentrated in those areas, where power is readily accessible and flood risks are lower, the report adds.

The report notes that Houston is evolving from a traditionally enterprise-focused co-location market for data centers into a “credible large-scale growth market,” buoyed by rising interest in hyperscale facilities and increased development activity.

Corporate, energy and healthcare users are still active in Houston’s data center market, the report says, with cloud computing and technology tenants making inroads. The Houston market absorbed 25 megawatts of data center capacity in the first half of this year.

Texas crowned No. 1 state market for data center capacity

The growth of Houston’s data center sector is occurring in tandem with Texas’ ascent as a data center market. The report shows Texas now boasts 26 gigawatts of existing and under-construction capacity, followed by Virginia at 13 gigawatts.

JLL declares that “Texas has cemented its position as the state for data centers.”

The “frontier” markets of West Texas, the Carolinas, Louisiana, and Ohio account for 77 percent of all capacity being developed nationwide, according to the report.

As evidence of Texas’ heightened stature in the data center sector, commercial real estate services provider Cushman & Wakefield recently ranked Dallas as the world’s No. 1 primary data center market, while Austin-San Antonio led the list of second-tier markets and West Texas topped the third-tier ranking.

These rankings underscore “Texas’ growing importance as a large-scale AI infrastructure hub,” Cushman & Wakefield says.

Opposition to new data centers in Texas grows

While businesses see the value of adding data centers in Texas, the state’s data center boom is rattling residents and politicians alike.

A recent University of Houston survey finds that although 85 percent of Houston-area residents use AI—a key driver of data center growth—nearly 63 percent oppose construction of a data center within a mile of their home. Experts estimate 6.5 gigawatts of capacity, or roughly one-fifth of the total U.S. pipeline, will join the Texas power grid by 2030, with Houston serving as a main hub.

A poll taken recently by the University of Texas/Texas Politics Project yielded similar results: 56 percent of Texans oppose development of data centers in their community.

“Texas’ grid is already facing pressure from population growth, extreme weather and rising industrial demand,” UH researcher Soran Mohtadi says. “When residents say they are concerned about data centers, they’re mostly referring to grid reliability and affordability.”

Data center backlash prompts action by politicians

Responding to Texans’ concerns over power and water consumption, Gov. Greg Abbott recently imposed a moratorium on new data centers in the state to allow time for regulatory agencies to assess the projects’ impact. Meanwhile, some state lawmakers are calling for a crackdown on data center development.

Last month, a state legislative committee chaired by Sen. Joan Huffman, a Houston Republican, held a hearing on the effects of state sales tax exemptions given to data centers. The cost of these exemptions has climbed from an estimated $14.6 million in 2014-15 to a projected $3.3 billion in 2028-29, according to law firm Holland & Knight.

Two backers of massive data centers in Texas, social media giant Meta Platforms and AI powerhouse OpenAI, agreed this week to comply with Abbott’s recently issued standards regarding data center projects—and more have followed suit.

Dan Diorio, executive vice president of state policy and government affairs for the industry-backed Data Center Coalition, fears backlash against data centers may curb economic growth in Texas.

“I worry that communities that put moratoriums ultimately create too much uncertainty and unpredictability, and what that ultimately means is that those communities may shut themselves off to data center development but also may shut themselves off to broader economic development,” Diorio told Fox 7 News in Austin.

SLB and Liberty Energy are working together to help solve the "bottleneck in AI infrastructure." Image courtesy SLB

SLB teams with Liberty Energy on modular power for AI data centers

ai alliance

Houston-headquartered SLB and Denver-based Liberty Energy Inc. announced a strategic agreement this month to support the rapid growth of new data center capacity.

Under the agreement, SLB will supply modular data center infrastructure and oversee large-scale execution, while Liberty will provide modular power generation systems and behind-the-meter power management technology for developers looking to add capacity. According to Reuters, the power will come from natural gas generation.

“The bottleneck in AI infrastructure is no longer just compute. It is the ability to deliver infrastructure and power on the timelines the market now demands,” Gavin Rennick, president of SLB’s New Energy and Industrial business, said in a news release. “By bringing together complementary infrastructure and power capabilities, we will help developers accelerate deployment of new data center capacity.”

The companies seek to specifically offer the modular technologies in areas without traditional grid connections or where grid capacity is limited.

They also aim to improve the "efficiency, flexibility and environmental performance of future data center energy systems," potentially through solutions like hybrid power systems and digital energy management, according to the news release.

Goldman Sachs estimates that U.S. data center capacity will more than double from 31 gigawatts in 2025 to 66 gigawatts in 2027. Other reports predict that Houston and Texas will be home to a significant portion of the data center boom, with capacity in the city and the state also expected to double in the next few years.

“The scale and complexity of AI energy infrastructure is fundamentally changing how power systems are built and deployed,” Ron Gusek, CEO of Liberty Energy, added in the release. “Liberty’s comprehensive power service platform is engineered to meet this transition, as customers increasingly prioritize tailored, integrated solutions. Building on our long-standing relationship with SLB, we are excited to bring power solutions that address immediate capacity constraints while supporting the next generation of energy systems.”

SLB sold its onshore hydraulic fracturing business in the United States and Canada to Liberty Energy in December 2020 in exchange for a 37 percent equity interest in the company.

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

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

by the numbers

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.”

Scotty Nyquist discuss the growth in AI data centers and the strain on the system. Photo via HARC report

Houston energy expert asks: Who pays when AI outruns the power grid?

Guets Column

For most of the past 20 years, U.S. electricity policy relied on predictable trends in demand. Electricity use, in most regions, increased gradually, forecasts were stable, and utilities adjusted the system in small steps. Power plants, transmission lines, and substations were generally added to reflect shifts in load, rather than growth, and costs were recovered through modest adjustments to customer bills.

Growth in AI data centers has disrupted this model. A single facility can add as much electricity demand as a small town. That demand comes all at once, runs continuously, and has little tolerance for outages. If electricity service drops even briefly, computation stops, and services shut down. Ironically, data centers need reliable service, a point that their emergence is driving concern around for the rest of the grid.

What the numbers say

The International Energy Agency projects global electricity consumption from data centers to double by 2030, reaching roughly 945 TWh, nearly 3 percent of global electricity demand, with consumption growing about 15 percent per year this decade. McKinsey projects that U.S. data center demand alone could grow 20–25 percent per year, with global capacity demand more than tripling by 2030.

After years of roughly 0.5 percent annual demand growth, many forecasts now place total U.S. electricity demand growth closer to 2–3 percent per year through the mid-2030s, with much higher growth in specific regions. In Texas, some forecasters are saying electricity demand could double over the next five years, a staggering 10 percent per year growth rate. What sounds incremental on paper translates into a major challenge on the ground. Meeting this pace of growth is estimated to require $250–$300 billion per year in grid investment, about double what the system has been absorbing.

Where the system starts to strain

The strain appears first in the interconnection queue. It shows up as long waits, backlogs, and delays for connecting new loads and new generation.

Before new generators or large load customers can be connected, a study is required to assess their impact on the grid, whether it can physically handle the added load, and whether upgrades are required. With AI-driven data centers, utilities face far more connection requests than they can realistically support. In ERCOT, large-load interconnection requests exceed 200 gigawatts, most tied to data centers. That amount exceeds historical norms, and it is several times larger than what can be practically studied or built in the near term.

To be clear, public utility commissions are required to study these requests because they must manage system capabilities to ensure minimal disruption. This means engineers spend time evaluating projects that may never be built, while other more commercially viable projects may wait longer for approvals. This extends timelines and makes infrastructure planning less reliable.

Why policymakers are rethinking the rules

Utilities and their regulators must decide how much generation, transmission, and substation capacity to build years before it comes online. Those decisions are based on expected demand at the time projects are approved. When it comes to data centers, by the time infrastructure is completed, they may end up deploying newer, more efficient chips that use less power than originally assumed. This can result in grid infrastructure built for a higher load than what actually materializes, leaving excess capacity that still must be paid for through system-wide rates.

That’s the central dilemma. If utilities build too little capacity, the system operates with less reserve margin. During periods of grid stress, operators have fewer options, increasing the likelihood of curtailments or outages. However, if utilities build too much, customers may be asked to pay for infrastructure that is not fully used.

In response, policymakers are adjusting the rules. In some regions, regulators are moving toward bring-your-own-power approaches that require large data centers to supply or fund part of the capacity needed to serve them or reduce demand during system stress. At the federal level, permitting reforms tied to datacenter infrastructure increasingly treat electricity as a strategic economic input.

As Ken Medlock, senior director at the Baker Institute Center for Energy Studies (CES), explains:

“Many of the planned data centers are now also adding behind-the-meter options to their development plans because they do not anticipate being able to manage their needs solely from the grid, and they certainly cannot do so with only intermittent power sources.”

Behind-the-meter (BTM) refers to power that a consumer controls on its side of the utility meter, such as on-site gas generation or a dedicated power plant. These resources allow data centers to keep operating during grid-related service. Most facilities remain connected to the grid, but the backup BTM generation serves as insurance for operating their core business.

This shifts responsibility. Utilities traditionally manage reliability across all customers by maintaining an operating reserve margin, or spare capacity. Increasingly, large-load customers manage part of their own electricity reliability needs, which changes how infrastructure is planned and how risk is distributed.

Bottom line

AI-driven load growth is arriving faster and in more concentrated places than the power system was built to accommodate. Utilities and regulators are being forced to make decisions sooner than planned about where to build, how fast to build, and which customers get priority when capacity is limited. The effects extend beyond data centers, showing up in system costs, reliability margins, competition for grid access, and pressure on communities and industries that depend on affordable and dependable power. The issue is not whether electricity can be generated, but how the costs and risks of rapid demand growth are distributed as the system tries to keep up. How regulators balance these decisions will determine who pays as AI demand outruns the power grid.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally appeared on LinkedIn.

Energy hungry data centers are increasing electric costs. Getty Images

As electric bills rise, evidence mounts that data centers share blame

Data Talk

Amid rising electric bills, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech's energy-hungry data centers.

It's not clear that any state has a solution and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and transmission lines.

That has meant pressuring the nation's biggest power grid operator to clamp down on price increases, studying the effect of data centers on electricity bills or pushing data center owners to pay a larger share of local transmission costs.

Rising power bills are “something legislators have been hearing a lot about. It’s something we’ve been hearing a lot about. More people are speaking out at the public utility commission in the past year than I’ve ever seen before,” said Charlotte Shuff of the Oregon Citizens’ Utility Board, a consumer advocacy group. “There’s a massive outcry.”

Not the typical electric customer

Some data centers could require more electricity than cities the size of Pittsburgh, Cleveland or New Orleans, and make huge factories look tiny by comparison. That's pushing policymakers to rethink a system that, historically, has spread transmission costs among classes of consumers that are proportional to electricity use.

“A lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities and these happen to be the wealthiest companies in the world,” said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University. “I think some of the fundamental assumptions behind all this just kind of breaks down.”

A fix, Peskoe said, is a “can of worms" that pits ratepayer classes against one another.

Some officials downplay the role of data centers in pushing up electric bills.

Tricia Pridemore, who sits on Georgia’s Public Service Commission and is president of the National Association of Regulatory Utility Commissioners, pointed to an already tightened electricity supply and increasing costs for power lines, utility poles, transformers and generators as utilities replace aging equipment or harden it against extreme weather.

The data centers needed to accommodate the artificial intelligence boom are still in the regulatory planning stages, Pridemore said, and the Data Center Coalition, which represents Big Tech firms and data center developers, has said its members are committed to paying their fair share.

But growing evidence suggests that the electricity bills of some Americans are rising to subsidize the massive energy needs of Big Tech as the U.S. competes in a race against China for artificial intelligence superiority.

Data and analytics firm Wood Mackenzie published a report in recent weeks that suggested 20 proposed or effective specialized rates for data centers in 16 states it studied aren’t nearly enough to cover the cost of a new natural gas power plant.

In other words, unless utilities negotiate higher specialized rates, other ratepayer classes — residential, commercial and industrial — are likely paying for data center power needs.

Meanwhile, Monitoring Analytics, the independent market watchdog for the mid-Atlantic grid, produced research in June showing that 70% — or $9.3 billion — of last year's increased electricity cost was the result of data center demand.

States are responding

Last year, five governors led by Pennsylvania's Josh Shapiro began pushing back against power prices set by the mid-Atlantic grid operator, PJM Interconnection, after that amount spiked nearly sevenfold. They warned of customers “paying billions more than is necessary.”

PJM has yet to propose ways to guarantee that data centers pay their freight, but Monitoring Analytics is floating the idea that data centers should be required to procure their own power.

In a filing last month, it said that would avoid a "massive wealth transfer” from average people to tech companies.

At least a dozen states are eyeing ways to make data centers pay higher local transmission costs.

In Oregon, a data center hot spot, lawmakers passed legislation in June ordering state utility regulators to develop new — presumably higher — power rates for data centers.

The Oregon Citizens’ Utility Board says there is clear evidence that costs to serve data centers are being spread across all customers — at a time when some electric bills there are up 50% over the past four years and utilities are disconnecting more people than ever.

New Jersey’s governor signed legislation last month commissioning state utility regulators to study whether ratepayers are being hit with “unreasonable rate increases” to connect data centers and to develop a specialized rate to charge data centers.

In some other states, like Texas and Utah, governors and lawmakers are trying to avoid a supply-and-demand crisis that leaves ratepayers on the hook — or in the dark.

Doubts about states protecting ratepayers

In Indiana, state utility regulators approved a settlement between Indiana Michigan Power Co., Amazon, Google, Microsoft and consumer advocates that set parameters for data center payments for service.

Kerwin Olsen, of the Citizens Action Council of Indiana, a consumer advocacy group, signed the settlement and called it a “pretty good deal” that contained more consumer protections than what state lawmakers passed.

But, he said, state law doesn't force large power users like data centers to publicly reveal their electric usage, so pinning down whether they're paying their fair share of transmission costs "will be a challenge.”

In a March report, the Environmental and Energy Law Program at Harvard University questioned the motivation of utilities and regulators to shield ratepayers from footing the cost of electricity for data centers.

Both utilities and states have incentives to attract big customers like data centers, it said.

To do it, utilities — which must get their rates approved by regulators — can offer “special deals to favored customers” like a data center and effectively shift the costs of those discounts to regular ratepayers, the authors wrote. Many state laws can shield disclosure of those rates, they said.

In Pennsylvania, an emerging data center hot spot, the state utility commission is drafting a model rate structure for utilities to consider adopting. An overarching goal is to get data center developers to put their money where their mouth is.

“We’re talking about real transmission upgrades, potentially hundreds of millions of dollars,” commission chairman Stephen DeFrank said. “And that’s what you don’t want the ratepayer to get stuck paying for."

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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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