Proposed Texas high-speed Houston-Dallas rail lands $500K in federal funds

fresh funds

Texas high-speed bullet train has some fresh financial fuel. Photo of the N700 courtesy of © JR Central

Amtrak and its partners will receive more than $2.1 billion in a federal program to improve existing routes and expand Amtrak service across the U.S.

That includes $500,000 from the Federal Railroad Administration awarded to the long-in-the-works high-speed rail project between Houston and Dallas, as well as another $500,000 awarded to the I-20 Corridor Long-Distance Passenger Rail Project.

The funding is via the newly-passed Infrastructure Investment & Jobs Act and includes multiple grants that will go to Amtrak and partners. This includes:

$108.5 million to Amtrak for station and service upgrades;
$2 billion to Amtrak partners in North Carolina, Virginia, Pennsylvania, and Maine for infrastructure upgrades
$34.5 million to 39 states and localities for planning and development of 69 new and improved intercity passenger rail corridors

These grants were awarded through the Federal Railroad Administration’s Federal-State Partnership for Intercity Passenger Rail Program for projects located across the National Network, as well as the Corridor Identification and Development Program (Corridor ID).

FRA Administrator Amit Bose says in a statement that these will be "transformative rail projects" that will provide climate-friendly alternatives to congested roads and airports.

“Today’s investments in passenger rail nationwide, made possible by the President’s Bipartisan Infrastructure Law, are another step forward as we expand and modernize our country’s rail network, providing more Americans the world-class passenger rail they need and deserve," Bose says.

Amtrak was awarded funding on a variety of projects, including four Corridor programs, designed to create a pipeline of intercity passenger rail projects.

Those include:

Texas High-Speed Rail Corridor. This proposed corridor would connect Houston and Dallas, Texas, with a new, dedicated and grade separated high-speed passenger rail service. This would provide new service on a new alignment, with station stops in Dallas, Brazos Valley and Houston.
Long Island Northeast Regional Extension. This proposed corridor would extend three existing daily Northeast Regional round trips between Washington, DC and New York City east to Ronkonkoma, NY, with stops at Jamaica (Queens, NY) and Hicksville, NY. This would entail track, station and infrastructure upgrades to accommodate these trains and better integrate Amtrak service with Long Island Rail Road commuter service.
Daily Cardinal Service. This proposed corridor would increase Cardinal service to operate daily, versus three days per week currently. This route operates between New York City and Chicago via Philadelphia, Baltimore, Washington, DC, Virginia, West Virginia, Kentucky, Ohio and Indiana.
Daily Sunset Limited Service. This proposed corridor would increase Sunset Limited service to operate daily, versus three days per week currently. This route operates between Los Angeles and New Orleans via Houston, San Antonio and El Paso, Texas; Tucson, Ariz.; and other communities.

The release does not say exactly how the $500,000 will be used. According to TxDOT, the current estimate for construction of track between Houston and Dallas is approximately $16 billion.

------

This article originally ran on CultureMap.

The high-speed train project, which is expected to reduce greenhouse gas emissions by more than 100,000 tons per year, is back on track. Photo courtesy of JR Central

Houston-Dallas bullet train gets back on the rails, races greener Texas travel

speeding back

In the latest chapter in the saga of the high-speed bullet train between Houston and Dallas, Amtrak is now involved.

According to a press release, Texas Central Partners and Amtrak are exploring a partnership to work together on the proposed Dallas-Houston high-speed rail project that's been under consideration for more than a decade.

Amtrak has cooperated with Texas Central on various initiatives since 2016 and the two entities are now evaluating a potential partnership to determine the line's viability.

“If we are going to add more high-speed rail to this country, the Dallas to Houston Corridor is a compelling proposition and offers great potential,” says Amtrak senior VP of High-Speed Rail Development Programs Andy Byford. “We believe many of the country's biggest and fastest-growing metropolitan areas, like Houston and Dallas, deserve more high quality high-speed, intercity rail service, and we are proud to bring our experience to evaluate this potential project and explore opportunities with Texas Central so the state can meet its full transportation needs.”

The route being proposed would span approximately 240 miles, going at 250 mph, resulting in a trip that would take less than 90 minutes between the two cities.

Texas Central has been working towards getting a train rolling since 2013, including lining up a potential builder in 2021. But the project has had pushback from Texas politicians and landowners along the route; a lawsuit against the project was filed by six rural counties in 2021, and the Texas Legislature passed a law prohibiting the state from spending any funds on the project.

Facing a seeming dead end, Texas Central CEO Carlos Aguilar and its board members resigned in June 2022; Michael Bui, a consultant, has been serving as CEO since then.

Texas Central and Amtrak have submitted applications to several federal programs in connection with further study and design work, including the Consolidated Rail Infrastructure Safety and Improvements (CRISI) grant program, the Corridor Identification and Development program, and the Federal-State Partnership for Intercity Passenger Rail (FSP-National) grant program.

Amtrak previously entered into an agreement with Texas Central to provide through-ticketing using the Amtrak reservation system and other support services for the planned high-speed rail line.

"This high-speed train, using advanced, proven Shinkansen technology, has the opportunity to revolutionize rail travel in the southern U.S., and we believe Amtrak could be the perfect partner to help us achieve that,” says Bui in a statement.

Despite its detractors, the project is forecast to provide social, environmental, employment and economic benefits including reducing greenhouse gas emissions by more than 100,000 tons per year, saving 65 million gallons of fuel and removing 12,500 cars per day from I-45.

The release from Amtrak has statements from both Dallas Mayor Eric L. Johnson and Houston Mayor Sylvester Turner, who calls the collaboration between Texas Central and Amtrak "an important milestone for the City of Houston and this project."

Byford joined Amtrak in April 2023 to begin developing a team focused on high-speed opportunities throughout the U.S. In his newly created role, he will develop and lead the execution of Amtrak’s long-term strategy for high-speed rail throughout the country, including the extension of the Crescent from Mississippi through Louisiana and Texas; Kansas DOT’s Heartland Flyer Extension Corridor Identification and Development (Corridor ID) connecting Wichita to Oklahoma and Texas, and TxDOT’s applications for the Texas Triangle (Houston — Dallas – Fort Worth – San Antonio) routes.

------

This article originally ran on CultureMap.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

EV surge could shutter 40 refineries by 2040, Wood Mackenzie report warns

ev outlook

The rise of electric vehicles could spell trouble for Houston’s oil and gas sector, a new report suggests. But the oil and gas industry stands to benefit from potential sluggishness in U.S. adoption of EVs.

If worldwide EV adoption rises as expected, global oil demand could fall by five million barrels per day by 2040, accelerating the closure of about 40 oil refineries, says the report, published by energy research and consulting firm Wood Mackenzie. The firm’s North American hub is in Houston.

Those closures might spell trouble for refinery operators with a sizable Houston-area presence, including BP, ExxonMobil, Marathon, Saudi Aramco, and Valero. In 2025, the five companies collectively earned roughly $33 billion from downstream operations, including refineries. One caveat: Each company assigns a different definition to “downstream.”

Refineries in Organization for Economic Co-operation and Development (OECD) countries, including the U.S. but excluding Middle Eastern heavyweights, “are most at risk due to their high energy costs and carbon prices,” the Wood Mackenzie report says.

On the flip side, an abundant U.S. oil supply means American drivers have less of an incentive to switch from traditional cars to electric vehicles, despite stubbornly high fuel prices, according to the report.

Wood Mackenzie predicts EVs will account for 20 percent of the U.S. personal and commercial vehicle fleet in 2040, up from three percent in 2025. That compares with a global forecast of 25 percent in 2040, up from 4 percent last year.

Another U.S. roadblock to EV adoption cited in the report: the country’s relative lack of advanced battery manufacturing.

“Without advanced battery technologies, the U.S. auto sector is at risk of ceding its home market to non-Chinese EVs and falling behind competitors internationally,” the report says.

Furthermore, according to the report, Chinese investment in EV manufacturing in the U.S. probably will remain a no-go and tariffs on Chinese EV imports likely won’t be lifted, even if Democrats resurrected EV incentives following a White House win in 2028.

“Competition among EV manufacturers in international markets will only intensify,” the report notes. “Companies that can offer competitive products in high-growth markets will be best positioned for long-term success.”

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.

Texas battery startup hits $13 billion valuation & more top energy news

Trending News

Editor's note: Summer is sizzling in the energy transition sector, with a big investment for Base Power and the acquisition of Houston-based Zupt. Plus, an Alabama-based renewables company relocates to Houston. Below are the five most-read EnergyCapitalHTX stories published between July 30-August 13, 2026:

1. Texas battery startup Base Power hits $13B valuation with $1B raise

Base Power, an Austin-based residential power provider with a Houston office, has raised $1 billion in a Series D round, bringing the startup’s valuation to $13 billion. Ribbit, Addition, Valor Equity Partners, and JPMorganChase’s Strategic Investment Group led the round, with participation from Altimeter, D1 Capital Partners, Sands Capital, Coatue, Layer Global, and Energy Impact Partners. Existing investors also added to the round, including Thrive Capital, a16z, Lightspeed, Trust Ventures, and CapitalG. Base Power, which provides residential battery backup systems that automatically turn on during outages and sells electricity to homeowners, says the funding will go toward hiring more people and expanding nationally. Continue reading.

2. Houston subsea firm Zupt acquired in offshore tech deal

Houston-based Zupt LLC, a provider of advanced metrology, inspection, and engineering services for offshore energy and renewable projects, has been acquired by Columbus, Ohio-based Rosenxt Holding USA for an undisclosed amount. Rosenxt says the deal, which closed July 21, represents another step in its long-term strategy to build a portfolio of technology and engineering capabilities for the subsea market in the energy sector. Continue reading.

3. Alabama-based renewable fuels company to move HQ to Houston

An Alabama-based clean tech company is moving its headquarters to Houston. Alléo Energy announced that it will move its headquarters from Bay Minette, Alabama, to Houston's Ion District. The company develops carbon-negative fuels and renewable commodities through its conversion technology that turns wood waste and cellulosic feedstocks into high-energy, high-yield syngas. Continue reading.

4. Houston geothermal startup adds former BP, Calpine execs to C-suite

XGS Energy, a Houston-based developer of geothermal power systems, has added several energy industry veterans to its C-suite this summer. The company named Al Vickers as its new chief operating officer earlier this month. Vickers will replace Ghazal Izadi in the role, as she moves into the chief growth officer position. Vickers previously served as CEO of bp's U.S. Low Carbon Energy business and most recently was COO of Houston-based Grid United, which develops next-generation transmission infrastructure. Continue reading.

5. Woodlands-based Lancium teams up on West Texas data center campus

The Woodlands-based Lancium Technologies, which designs, develops, and manages gigawatt-scale data center campuses, has teamed up with Denver-based data center builder and operator Crusoe Energy Systems on a new grid-connected campus more than 100 miles east of Wichita Falls. Construction on the 1-gigawatt Childress County campus, being built for an unidentified tech company, is expected to start in Q3 of this year. Continue reading.

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME