CenterPoint and partners launch AI initiative to stabilize the power grid

AI infrastructure

CenterPoint, NVIDIA and Palantir have formed Chain Reaction. Photo via Getty Images

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president and CEO of CenterPoint, added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.

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CenterPoint customers in the Houston area will pay an extra $1 a month to cover costs of the recently approved $2.9 billion resiliency plan starting next year. Photo via centerpointenergy.com

CenterPoint gets go-ahead for $2.9B upgrade of Houston grid

grid resiliency

Texas utility regulators have given the green light for Houston-based CenterPoint Energy to spend $2.9 billion on strengthening its Houston-area electric grid to better withstand extreme weather.

The cost of the plan is nearly $3 billion below what CenterPoint initially proposed to the Public Utility Commission of Texas.

In early 2025, CenterPoint unveiled a $5.75 billion plan to upgrade its Houston-area power system from 2026 through 2028. But the price tag dropped to $2.9 billion as part of a legal settlement between CenterPoint and cities in the utility’s service area.

Sometime after the first quarter of next year, CenterPoint customers in the Houston area will pay an extra $1 a month for the next three years to cover costs of the resiliency plan. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

CenterPoint says the plan is part of its “commitment to building the most resilient coastal grid in the country.”

A key to improving CenterPoint’s local grid will be stepping up management of high-risk vegetation (namely trees), which ranks as the leading cause of power outages in the Houston area. CenterPoint says it will “go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle,” clearing vegetation from thousands of miles of power lines.

The utility company says its plan aims to prevent Houston-area power outages in case of hurricanes, floods, extreme temperatures, tornadoes, wildfires, winter storms, and other extreme weather events.

CenterPoint says the plan will:

Improve systemwide resilience by 30 percent
Expand the grid’s power-generating capacity. The company expects power demand in the Houston area to grow 2 percent per year for the foreseeable future.
Save about $50 million per year on storm cleanup costs
Avoid outages for more than 500,000 customers in the event of a disaster like last year’s Hurricane Beryl
Provide 130,000 stronger, more storm-resilient utility poles
Put more than 50 percent of the power system underground
Rebuild or upgrade more than 2,200 transmission towers
Modernize 34,500 spans of underground cables

In the Energy Capital of the World, residents “expect and deserve an electric system that is safe, reliable, cost-effective, and resilient when they need it most. We’re determined to deliver just that,” Jason Wells, president and CEO of CenterPoint, said in January.

CenterPoint Energy has launched a $65 million capital improvement plan that will focus on building and maintaining a “resilient” electric grid. Photo via centerpointenergy.com

CenterPoint launches $65B capital improvement plan

grid growth

To support rising demand for power, Houston-based utility company CenterPoint Energy has launched a $65 billion, 10-year capital improvement plan.

CenterPoint said that in its four-state service territory — Texas, Indiana, Minnesota and Ohio — the money will go toward building and maintaining a “resilient” electric grid and a safe natural gas system.

In the Houston area, CenterPoint forecasts peak demand for electricity will increase nearly 50 percent, to almost 31 gigawatts, by 2031 and peak demand will climb to almost 42 gigawatts by the middle of the next decade. CenterPoint provides energy to nearly 2.8 million customers in the Houston area.

In addition to the $65 billion capital improvement budget, which is almost 40 percent higher than the 2021 budget, CenterPoint has identified more than $10 billion in investment opportunities that could further improve electric and natural gas service.

“Every investment we make at CenterPoint is in service of our approximately seven million metered customers we have the privilege to serve,” CenterPoint president and CEO Jason Wells said in a news release.

“With our customer-driven yet conservative approach to growth, we continue to see significant potential for even more investment for the benefit of our customers that is not yet reflected in our new plan,” he added.

A new UH survey shows Harris County residents fear power outages more than flooding or wind when severe weather hits. Photo via Getty Images.

Summer outages remain major concern despite CenterPoint upgrades, report shows

power report

A new survey from the University of Houston Hobby School of Public Affairs showed that nearly 70 percent of 2,300 Harris County registered voters polled were very worried or moderately worried about losing power this summer.

The survey asked residents questions about the potential impact of severe summer weather and to evaluate CenterPoint’s efforts to improve the electrical grid over the past year. It was conducted between July 9-18.

Among the three severe weather threats studied—being without power, high winds and flooding—loss of power was the primary concern among respondents. When asked to what extent residents were worried about being without power:

42 percent were very worried
27 percent were moderately worried
19 percent were a little worried
12 percent were not worried at all

Only 25 percent of respondents reported they were very worried about wind damage, and 20 percent were very worried about flooding.

The report also found that 63 percent of respondents held an unfavorable opinion of CenterPoint Energy.

And despite CenterPoint’s $3.2 billion Systemwide Resiliency Plan (SRP), partnerships with AI companies, and its ongoing Greater Houston Resiliency Initiative (GHRI), 44 percent of respondents said they believe CenterPoint has made only "a little bit" progress on improving the grid's overall reliability.

CenterPoint maintains that the SRP is expected to reduce storm-related outages by 1 billion minutes for its 2.8 million customers by 2029. The company also recently reported a 45 percent reduction in the duration of outages for individual customers from January to June of this year.

“We believe that these resiliency actions will help create a future with fewer outages that impact smaller clusters of customers, coupled with faster restoration times for our Greater Houston communities,” Jason Wells, president and CEO of CenterPoint, previously said in a news release.

Read the full report that includes demographic explanations here.

Jesus Soto Jr., an energy executive with deep Houston ties, will join CenterPoint Energy as COO and executive vice president on Aug. 11. Photo courtesy CenterPoint Energy.

CenterPoint Energy names new COO as resiliency initiatives continue

new hire

CenterPoint Energy has named Jesus Soto Jr. as its new executive vice president and chief operating officer.

An energy industry veteran with deep ties to Texas, Soto will oversee the company's electric operations, gas operations, safety, supply chain, and customer care functions. The company says Soto will also focus on improving reliability and meeting the increased energy needs in the states CenterPoint serves.

"We are pleased to be able to welcome a leader of Jesus Soto's caliber to CenterPoint's executive team,” Jason Wells, CEO and president of CenterPoint, said in a news release. “We have one of the most dynamic growth stories in the industry, and over the next five years we will deliver over $31 billion of investments across our footprint as part of our capital plan. Jesus's deep understanding and background are the perfect match to help us deliver this incredible scope of work at-pace that will foster the economic development and growth demands in our key markets. He will also be instrumental in helping us continue to focus on improving safety and delivering better reliability for all the communities we are fortunate to serve.”

Soto comes to CenterPoint with over 30 years of experience in leading large teams and executing large scale capital projects. As a longtime Houstonian, he served in roles as executive vice president of Quanta Services and COO for Mears Group Inc. He also served in senior leadership roles at other utility and energy companies, including PG&E Corporation in Northern California and El Paso Corp. in Houston.

Soto has a bachelor's degree in civil engineering from the University of Texas at El Paso, and a master's degree in civil engineering from Texas A&M University. He has a second master's degree in business administration from the University of Phoenix.

“I'm excited to join CenterPoint's high-performing team,” Soto said in the news release. “It's a true privilege to be able to serve our 7 million customers in Texas, Indiana, Ohio and Minnesota. We have an incredible amount of capital work ahead of us to help meet the growing energy needs of our customers and communities, especially across Texas.”

Soto will join the company on Aug. 11 and report to Wells as CenterPoint continues on its Greater Houston Resiliency Initiative and Systemwide Resiliency Plan.

“To help realize our resiliency and growth goals, I look forward to helping our teams deliver this work safely while helping our customers experience better outcomes,” Soto added in the news release. “They expect, and deserve, no less.”

CenterPoint says it will cut storm-related outages by 1 billion minutes with its new Systemwide Resiliency Plan. Photo via Getty Images

CenterPoint reaches agreement on SRP to significantly reduce outages

grid resilience

CenterPoint Energy has reached a settlement agreement with parties to its 2026-2028 Systemwide Resiliency Plan (SRP), which will represent the largest single grid resiliency investment in CenterPoint's history.

The plan is expected to reduce storm-related outages by 1 billion minutes for its 2.8 million customers by 2029 and build on the first two phases of the company's Greater Houston Resiliency Initiative (GHRI), according to a release from CenterPoint.

This SRP is designed to further address the impacts of extreme weather threats. The deal, which is subject to Public Utility Commission of Texas (PUCT) review and approval, reflects discussions with intervening parties following the filing of CenterPoint's enhanced SRP with the PUCT in January 2025.

“Our plan is cost-effective and will build on the progress we've made to date through the Greater Houston Resiliency Initiative,” Jason Wells, president and CEO of CenterPoint, said in a news release. “We believe that these resiliency actions will help create a future with fewer outages that impact smaller clusters of customers, coupled with faster restoration times for our Greater Houston communities.”

Included in the SRP is a revised, agreed-upon investment of more than $3 billion in CenterPoint's electric distribution system, and also includes the deferment of more than $240 million in SRP costs until the second half of 2029, which will spread the costs out for customers over a four-year period. All SRP work will be completed in the proposed 2026-2028 timeframe, once approved.

The plan will target high-risk areas. Key initiatives include:

Distributing 130,000 stronger storm-resilient poles
Clearing 100 percent of power lines of hazardous vegetation every three years
Undergrounding more than 50 percent of CenterPoint's system
Modernizing 20,150 spans of underground cables
Automating lines serving the most customers to make them capable of “self-healing”

CenterPoint also announced it will continue its nearly $2 billion investment planned for the electric transmission system, which includes rebuilding or upgrading 2,200 structures to help withstand extreme weather.

The SRP investment in the electric distribution system would add $1.40 per month for an average residential customer each year from 2026 through 2028, with a final $0.60 per month added in 2030, according to the news release.

“This is another major step on our strategic roadmap to building and operating the most resilient coastal grid in the nation,” Wells said in the release.

In preparation for filing the SRP, CenterPoint ran 30 community meetings, listening sessions and solicited feedback on the plan during the draft stages.

In April, CenterPoint began building a network of 100 new weather monitoring stations, which will provide 24/7 weather monitoring and storm response preparation, and in June began installing 100 new local weather monitoring stations as part of the GHRI Phase 2. Also in April, CenterPoint began a collaboration between AI-powered predictive modeling platform company Neara and utility infrastructure asset assessment solutions company Osmose.

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Houston scientists unveil faster, low-energy method to recycle lithium-ion batteries

Battery breakthrough

Rice University researchers have uncovered a more energy-efficient and faster way to recycle critical minerals from used lithium-ion batteries.

Traditional methods rely on high heat, long processing times and harsh chemicals to recover a small fraction of critical materials from batteries used in everything from smartphones to electric vehicles. However, the team from Rice's Department of Materials Science and Nanoengineering developed a process that uses a water-based solution containing amino chlorides to extract more metals in less time

The team published the findings in a recent edition of the scientific journal Small.

Simon King, a sophomore studying chemical and biomolecular engineering who completed this work as a summer research fellow at the Rice Advanced Materials Institute, served as first author of the study. He worked with corresponding authors Pulickel Ajayan, the Benjamin M. and Mary Greenwood Anderson Professor of Engineering, and Sohini Bhattacharyya, a research scientist in Ajayan’s lab.

By using a hydroxylammonium chloride (HACI) solution, the team achieved roughly 65 percent extraction of key battery metals in just one minute at room temperature, according to the study. The efficiencies grew to roughly 75 percent for several metals under longer processing times.

“We were surprised by just how fast the reaction occurs, especially without the involvement of high temperatures,” King said in a news release. “Within the first minute, we’re already seeing the majority of the metal extraction take place.”

By not requiring high temperatures or long reaction times, Rice predicts the process could have a major impact on cost and the environmental impact of lithium battery recycling. Additionally, the water-based HACI solution makes waste handling easier and lowers certain environmental risks.

In addition to extracting the materials, the team went on to demonstrate that the recovered metals could be recycled and reprocessed into new battery materials.

“A big advantage of this system is that it works under relatively mild conditions,” Ajayan added in the release. “That opens the door to more sustainable and scalable recycling technologies.”

Fervo IPO leads Houston energy transition headlines for April

Hot Topics

Editor's note: The top Houston energy transition news of the month includes Fervo's official steps towards an IPO and Houston universities teaming up for recycling innovation. Below are the five most-read EnergyCapital stories published April 16-30, 2026:

Fervo Energy officially files for initial public offering

Fervo Energy has officially filed for IPO. The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO." Continue reading.

Fervo Energy adds former eBay CEO Meg Whitman, other leaders to board

As it prepares for a highly anticipated IPO, Houston-based geothermal power provider Fervo Energy has added four heavyweights to its board of directors. The most notable new board member is Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE, and former U.S. ambassador to Kenya. She joined the Fervo board as lead independent director. Continue reading.

Tesla's EV Robotaxis officially launch in Texas' largest metros

Tesla’s Robotaxi service has taken to the streets of Houston. In a brief statement Saturday, April 18 on its X social media account, Tesla Robotaxi says the autonomous rideshare service just launched in Texas’ two biggest metro areas — Houston and Dallas. Continue reading.

Halliburton Labs names 4 new clean energy startups to incubator

Four new companies have joined Halliburton Labs, the incubator for early-stage energy and climate startups run by Houston energy giant Halliburton. Halliburton Labs provides the emerging companies with mentorship, industry connections, laboratory access and other resources as they work toward commercialization. Continue reading.

Rice, UH launch joint effort to accelerate plastics recycling solutions

Institutes at two Houston universities are joining forces to help position the city as a global leader in plastics recycling innovation. The Center for Energy Studies (CES) at Rice University’s Baker Institute for Public Policy and the University of Houston’s Energy Transition Institute (UH-ETI) have announced a strategic partnership that aims to develop real-world solutions for plastic recycling. Continue reading.

Houston-area plastics company debuts state-of-the-art headquarters

new hq

Ultra-high-performance plastics company Drake Plastics officially opened its new state-of-the-art, 140,000-square-foot manufacturing center and corporate office in Cypress last month.

Dubbed “Drake HQ, ” the new facility was built to align with Harris County’s clean energy goals and features a 1.3-megawatt solar generation plant designed to offset 50 percent of the plant’s power consumption.

The facility is designed as a “factory ranch,” and is intended to blend in with its natural surroundings. With the expanded campus, Drake says it looks to serve existing and new customers in the semiconductor, aerospace, energy and defense industries.

The new headquarters is designed as a "factory ranch" and features a solar generation plant to offset half of its power consumption. Photo via LinkedIn

“We are thrilled to open the doors of our new headquarters in the area where it all began,” Drake Plastics President Steven Quance said in a news release. “We are honored to have reinvested in the community that has supported our growth and success over the past three decades.”

Drake Plastics cut the ribbon on March 26 at the new facility, which also marked the company’s 30th anniversary in the Cypress area. The company launched in 1996 with four employees and has grown to employ more than 100 staff members, according to a LinkedIn post.

Drake Plastics is a globally recognized leader in ultra-high-performance polymer manufacturing and specializes in extrusion, injection molding, precision machining, machine building, engineering and distribution. According to the company, its new Cypress facilty is one of the largest in the world that processes these high-performance polymers.

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