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Houston energy transition ecosystem rebrands as 'Energytech Cypher'

new look

Energytech Cypher co-founders Nada Ahmed and Jason Ethier. Photo via energytechcypher.com

Houston-based Energytech Nexus has rebranded.

The cleantech founders community will now be known as Energytech Cypher. Organizers say the new name was inspired by the Arabic roots of the word cypher, ṣifr, which is also the root of the word zero.

"A cypher is a key that unlocks what's hidden," Nada Ahmed, co-founder and chief revenue officer of Energytech Cypher, said in a news release. "And zero? Zero is where every transformation begins, the leap from 0 to 1, from idea to reality, from potential to power. We decode the energy transition by connecting the right founders, the right capital, and the right corporate partners at the right time, because the most important journey in energy is the one that takes you from nothing to something."

Energytech Nexus has rebranded to Energytech Cypher.

Co-founder and CEO Jason Ethier says that the name change better reflects the organization's mission.

"The energy transition doesn't have a technology problem. It has a connection problem," Ehtier added in the release. "The right founders exist. The right investors exist. The right partners exist. What's been missing is the infrastructure to bring them together—to decode the complexity, remove the friction, and make sure the best technologies find the markets that need them. That's what this community has always done. Energytech Cypher is the name that finally says it."

Energytech Cypher, previously known as Energytech Nexus, was first launched in 2023 and has grown from a podcast to a 130-member ecosystem. It has supported startups including Capwell Services, Resollant, Syzygy Plasmonics, Hertha Metals, Solidec and many others.

It is known for its flagship programs like the Pilotathon, which connects founders with industry partners for pilot opportunities. The event debuted in 2024.

Energytech Cypher also launched its COPILOT Accelerator last year. The accelerator partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatech sectors. The inaugural cohort included two Houston-based startups and 12 others from around the U.S.

It also hosts programs like Liftoff, Energy Tech Market, lunch and learns, CEO roundtables, investor workshops and international partnership initiatives.

Last year, Energytech Cypher also announced a new strategic ecosystem partnership with Greentown Labs, aimed at accelerating growth for clean energy startups. It also named its global founding partners, including Houston-based operations such as Chevron Technology Ventures, Collide, Oxy Technology Ventures, and others from around the world.

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20+ companies will pitch at Energy Tech Nexus' Pilotathon during Houston Energy & Climate Startup Week. Photo via Getty Images.

Houston energy expert looks ahead to climate tech trends of 2026

Guest Column

There is no sugar‑coating it: 2025 was a rough year for many climate tech founders. Headlines focused on policy rollbacks and IRA uncertainty, while total climate tech venture and growth investment only inched up to about 40.5 billion dollars, an 8% rise that felt more like stabilization than the 2021–2022 boom. Deal count actually fell 18% and investor participation dropped 19%, with especially steep pullbacks in carbon and transportation, as capital concentrated in fewer, larger, “safer” bets. Growth-stage funding jumped 78% while early-stage seed rounds dropped 20%.

On top of that, tariff battles and shifting trade rules added real supply‑chain friction. In the first half of 2025, solar and wind were still 91% of new U.S. capacity additions, but interconnection delays, equipment uncertainty, and changing incentive structures meant many projects stalled or were repriced mid‑stream. Founders who had raised on 2021‑style valuations and policy optimism suddenly found themselves stuck in limbo, extending runway or shutting down.

The bright spots were teams positioned at the intersection of climate and the AI power surge. Power demand from data centers is now a primary driver of new climate‑aligned offtake, pulling capital toward firm, 24/7 resources. Geothermal developers like Fervo Energy, Sage Geosystems and XGS did well. Google’s enhanced‑geothermal deal in Nevada scales from a 3.5 MW pilot to about 115 MW under a clean transition tariff, nearly 30× growth in geothermal capacity enabled by a single corporate buyer. Meta and others are exploring similar pathways to secure round‑the‑clock low‑carbon power for hyperscale loads.

Beyond geothermal, nuclear is clearly back on the strategic menu. In 2024, Google announced the first U.S. corporate nuclear offtake, committing to purchase 500 MW from Kairos Power’s SMR fleet by 2035, a signal that big tech is willing to underwrite new firm‑power technologies when the decarbonization and reliability story is compelling. Meta just locked in 6.6GW of nuclear capacity through deals with Vistra, Oklo, and TerraPower.

Growth investors and corporates are increasingly clustering around platforms that can monetize long‑duration PPAs into data‑center demand rather than purely policy‑driven arbitrage.

Looking into 2026, the same trends will continue:

Solar and wind

Even with policy headwinds, solar and wind continue to dominate new capacity. In the first half of 2025 they made up about 90% of new U.S. electricity capacity. Over the 2025–2028 period, FERC’s ‘high‑probability’ pipeline points to on the order of 90–93 GW of new utility‑scale solar and roughly 20–23 GW of new wind, far outpacing other resources.

Storage and flexibility

Solar plus batteries is now the default build—solar and storage together account for about 81% of expected 2025 U.S. capacity additions, with storage deployments scaling alongside renewables to keep grids flexible. Thermal storage and other grid‑edge flexibility solutions are also attracting growing attention as ways to smooth volatile load.

EVs and transport

EV uptake continues to anchor long‑term battery demand; while transportation funding cooled in 2025, EV sales and charging build‑out are still major components of clean‑energy demand‑side investment

Buildings

Heat pumps, smart HVAC, and efficient water heating are now the dominant vectors for building‑sector decarbonization. Heating and cooling startups alone have raised billions since 2020, with nearly 700 million dollars going into HVAC‑focused companies in 2024, and that momentum carried into 2025.

Hydrogen

The green hydrogen narrative has faded, but analysts still see hydrogen as essential for steel, chemicals, and other hard‑to‑abate sectors, with large‑scale projects and offtake frameworks under development rather than headline hype.

CCS/CCUS

After years of skepticism, more large CCS projects are finally reaching FID and coming online, helped by a mix of tax credits and industrial demand, which makes CCS look more investable than it did in the pre‑IRA era.

So, yes, 2025 was a downer from the easy‑money, policy‑euphoria years. But the signal beneath the noise is clear: capital is rotating toward technologies with proven unit economics, real offtake (especially from AI‑driven power loads), and credible paths to scale—not away from climate altogether.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus.

Nada Ahmed. Courtesy photo

Houston expert discusses the clean energy founder's paradox

Guest Column

Everyone tells you to move fast and break things. In clean energy, moving fast without structural integrity means breaking the only planet we’ve got. This is the founder's paradox: you are building a company in an industry where the stakes are existential, the timelines are glacial, and the capital requires patience.

The myth of the lone genius in a garage doesn’t really apply here. Clean energy startups aren’t just fighting competitors. They are fighting physics, policy, and decades of existing infrastructure. This isn’t an app. You’re building something physical that has to work in the real world. It has to be cheaper, more reliable, and clearly better than fossil fuels. Being “green” alone isn’t enough. Scale is what matters.

Your biggest risks aren’t competitors. They’re interconnection delays, permitting timelines, supply chain fragility, and whether your first customer is willing to underwrite something that hasn’t been done before.

That reality creates a brutal filter. Successful founders in this space need deep technical knowledge and the ability to execute. You need to understand engineering, navigate regulation, and think in terms of markets and risk. You’re not just selling a product. You’re selling a future where your solution becomes the obvious choice. That means connecting short-term financial returns with long-term system change.

The capital is there, but it’s smarter and more demanding. Investors today have PhDs in electrochemistry and grid dynamics. They’ve been burned by promises of miracle materials that never left the lab. They don't fund visions; they fund pathways to impact that can scale and make financial sense. Your roadmap must show not just a brilliant invention, but a clear, believable plan to drive costs down over time.

Capital in this sector isn’t impressed by ambition alone. It wants evidence that risk is being retired in the right order — even if that means slower growth early.

Here’s the upside. The difficulty of clean energy is also its strength. If you succeed, your advantage isn’t just in software or branding. It’s in hardware, supply chains, approvals, and years of hard work that others can’t easily copy. Your real competitors aren’t other startups. They’re inertia and the existing system. Winning here isn’t zero-sum. When one solution scales, it helps the entire market grow.

So, to the founder in the lab, or running field tests at a remote site: your pace will feel slow. The validation cycles are long. But you are building in the physical world. When you succeed, you don’t have an exit. You have a foundation. You don't just have customers; you have converts. And the product you ship doesn't just generate revenue; it creates a legacy.

If your timelines feel uncomfortable compared to software, that’s because you’re operating inside a system designed to resist change. And let’s not forget you are building actual physical products that interact with a complex world. Times are tough. Don’t give up. We need you.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus.

Stephen Ojji is rethinking workplace safety. Courtesy photo

Podcast: How AI-powered detection can prevent workplace accidents before they happen

now streaming

Workplace safety has always been reactive. Incidents happen, reports are filed, lessons are learned — sometimes too late. But what if safety wasn’t about reacting to accidents, but preventing them altogether?

In this episode of the Energy Tech Startups Podcast, Stephen Ojji, founder and CEO of VisionTech, challenges how high-hazard industries approach safety. His vision? AI-driven incident detection that doesn’t just monitor the workplace —i t actively prevents injuries, ensures compliance, and builds a stronger safety culture.

From Oil and Gas Safety to AI Innovation

Stephen’s journey into energy tech isn’t what you’d expect. Starting as a safety engineer in Nigeria’s oil and gas sector, his early career was focused on ensuring compliance, training teams, and reducing workplace risks. But he quickly realized a flaw in the system — many incidents weren’t being reported at all.

"Workers don’t always report hazards, and not because they don’t care," he explains. "Sometimes it’s fear of consequences. Sometimes it’s just human nature — we’re focused on getting the job done. But ignoring small risks leads to big accidents."

That’s where VisionTech’s AI-powered safety monitoring system comes in. Instead of relying on human reporting, VisionTech integrates with existing workplace cameras, using computer vision technology and AI to detect:

  • Spills, fire hazards, and safety violations in real-time
  • Workers at risk of injury due to incorrect lifting techniques or missing PPE
  • Trends in safety culture, helping companies address recurring risks

"Think of it like having an extra set of eyes that never blinks," Stephen says. "Not to police workers, but to protect them."

AI and Safety: Moving Beyond Compliance to Prevention

Unlike traditional workplace monitoring, VisionTech’s AI safety system doesn’t track individuals — it tracks behaviors. The system uses ghosting technology, ensuring that workers’ identities remain anonymous while hazards are flagged instantly.

This shifts the focus from penalizing mistakes to empowering safer work environments.

"Companies say they care about safety, but what does that really mean?" Stephen challenges. "If safety is the priority, why not use every tool available to protect workers before an accident happens?"

And here’s the kicker: VisionTech doesn’t just detect risks. It helps companies act on them.

Instead of logging safety incidents in spreadsheets that go unread, the system transforms safety data into actionable insights — identifying patterns, trends, and areas for improvement that help companies make real, lasting changes.

Why Now? The Urgency for Smarter Safety Solutions

With OSHA regulations tightening and ESG commitments pushing for stronger worker protections, industrial companies are under growing pressure to do more than just meet compliance standards.

At the same time, AI and machine learning have advanced rapidly, making AI-powered safety monitoring more affordable, scalable, and accurate than ever before.

"If we had tried to build this 10 years ago, it wouldn’t have worked," Stephen admits. "The technology wasn’t ready. The market wasn’t ready. But today? It’s the right time, and the right tool for a problem that’s been ignored for too long."

What’s Next for VisionTech?

Currently in the MVP stage, VisionTech is preparing for pilot programs with oil and gas companies to prove its impact in real-world environments. The plan? Scale beyond oil and gas into manufacturing, construction, and any industry where safety matters.

But for Stephen, this isn’t just about launching another safety product — it’s about changing how companies think about protecting their workers.

"Safety isn’t just a compliance box to check," he says. "It’s about people. If companies really believe that ‘our employees are our greatest asset,’ then investing in their safety should be the easiest decision they ever make."

This is a conversation you don’t want to miss.

See the full episode with Stephen Ojji on the Energy Tech Startups Podcast below, or click here to listen.

———

Energy Tech Startups Podcast is hosted by Jason Ethier and Nada Ahmed. It delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.


The insurance crisis is reverberating across the nation. Photograph by Geoffrey George/Getty Images

Capitalism and climate: How financial shifts will shape our behavior

guest column

I never imagined I would see Los Angeles engulfed in flames in this way in my lifetime. As someone who has devoted years to studying climate science and advocating for climate technology solutions, I'm still caught off guard by the immediacy of these disasters. A part of me wants to believe the intensifying hurricanes, floods, and wildfires are merely an unfortunate string of bad luck. Whether through misplaced optimism or a subconscious shield of denial, I hadn't fully processed that these weren't just harbingers of a distant future, but our present reality. The recent fires have shattered that denial, bringing to mind the haunting prescience of the movie Don't Look Up. Perhaps we aren't as wise as we fancy ourselves to be.

The LA fires aren't an isolated incident. They're part of a terrifying pattern: the Canadian wildfires that darkened our skies, the devastating floods in Spain and Pakistan, and the increasingly powerful hurricanes in the Gulf. A stark new reality is emerging for climate-vulnerable cities, and whether we acknowledge the underlying crisis or not, climate change is making its presence felt – not just in death and destruction, but in our wallets.

The insurance industry, with its cold actuarial logic, is already responding. Even before the recent LA fires, major insurers like State Farm and Allstate had stopped writing new home policies in California, citing unmanageable wildfire risks. In the devastated Palisades area, 70% of homes had lost their insurance coverage before disaster struck. While some homeowners may have enrolled in California's limited FAIR plan, others likely went without coverage. Now, the FAIR plan faces $5.9 billion in potential claims, far exceeding its reinsurance backup – a shortfall that promises delayed payments and costlier coverage.

The insurance crisis is reverberating across the nation, and Houston sits squarely in its path. As a city all too familiar with the destructive power of extreme weather, we're experiencing our own reckoning. The Houston Chronicle recently reported that local homeowners are paying a $3,740 annually for insurance – nearly triple the national average and 60% higher than the Texas state average. Our region isn't just listed among the most expensive areas for home insurance; it's identified as one of the most vulnerable to climate hazards.

For Houston homeowners, Hurricane Harvey taught us a harsh lesson: flood zones are merely suggestions, not guarantees. The next major hurricane won't respect the city's floodplain designations. This reality poses a sobering question: Would you risk having your largest asset – your home – uninsured when flooding becomes increasingly likely in the next decade or two?

For most Americans, home equity represents one of the largest components of household wealth, a crucial stepping stone to financial security and generational advancement. Insurance isn't just about protecting physical property; it's about preserving the foundation of middle-class economic stability. When insurance becomes unavailable or unaffordable, it threatens the very basis of financial security for millions of families.

The insurance industry's retreat from vulnerable markets – as evidenced by Progressive and Foremost Insurance's withdrawal from writing new policies in Texas – is more than a business decision. It's a market signal. These companies are essentially pricing in the reality of climate change, whether we choose to call it that or not.

What we're witnessing is the market beginning to price us out of areas where we've either built unsustainably or perhaps should never have built at all. This isn't just about insurance rates; it's about the future viability of entire communities and regional economies. The invisible hand of the market is doing what political will has failed to do: forcing us to confront the true costs of our choices in a warming world.

Insurance companies aren't the only ones sounding the alarm. Lenders and investors are quietly rewriting the rules of capital access based on climate risk. Banks are adjusting mortgage terms and raising borrowing costs in vulnerable areas, while major investment firms are factoring carbon intensity into their lending decisions. Companies with higher environmental risks have faced higher loan spreads and borrowing costs – a trend that's accelerating as climate impacts intensify. This financial reckoning is creating a new economic geography, where access to capital increasingly depends on climate resilience.

The insurance crisis is the canary in the coal mine, warning us of the systemic risks ahead. As actuaries and risk managers factor climate risks into their models, we're seeing the beginning of a profound economic shift that will ripple far beyond housing, affecting businesses, agriculture, and entire regional economies. The question isn't whether we'll adapt to this new reality, but how much it will cost us – in both financial and human terms – before we finally act.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus.

The question isn't whether AI will change work – it's whether we'll use this moment to finally build workplaces that enhance rather than diminish our humanity. Photo via Getty Images

Energy tech expert on how AI is changing in the workplace — and what employers need to recognize

guest column

When OpenAI's GPT-4 made headlines by passing the bar exam and scoring in the top 10 percent on medical licensing tests, I noticed something fascinating: everyone focused on AI replacing professionals, but they missed the deeper story. AI isn't just disrupting work – it's exposing fundamental flaws in how we've built our entire workplace ecosystem. It's holding up a mirror to our organizations, revealing just how far we've strayed from what makes us uniquely human.

The World Economic Forum tells us 44 percent of workers' skills will need updating by 2027, but that statistic only scratches the surface. In my conversations with business leaders, I'm watching a transformation unfold in real-time. Take the accounting industry, where I've observed forward-thinking firms like Deloitte and PwC turning their accountants into strategic business advisors while other firms continue training junior staff for tasks that AI will soon handle. This isn't just a skills mismatch – it's a fundamental misunderstanding of human potential.

The challenge runs deeper than individual industries. McKinsey predicts 30 percent of hours worked globally could be automated by 2030, but I believe they're missing a crucial point. We've spent decades designing jobs around industrial-era ideals of efficiency and standardization – the very qualities that make them perfect targets for AI automation. In our obsession with measuring, standardizing, and streamlining everything, we've created workplaces that treat humans like machines rather than the complex, creative beings we are.

What's emerging is a striking paradox: as work becomes more automated, our workplace cultures are growing more disconnected. Microsoft researchers identified a "collaboration deficit" in remote work environments, with 56 percent of employees reporting a decline in workplace friendships. This cultural shift is occurring precisely when we need human connection most. During the Great Resignation of 2021, 47 million Americans quit their jobs, they weren't leaving because of salary considerations or technological inadequacies. The most common reasons cited were lack of human connection, purpose, and authentic leadership.

Yet instead of heeding this wake-up call, the rise of AI is pushing us further apart. A decade ago, the concept of "workplace family" was commonplace – now it's often dismissed as manipulative corporate rhetoric. This shift reveals a troubling blindspot in our thinking about work. Consider this: we spend more than 90,000 hours at work over our lifetime – more time than we spend with our own families – yet we're increasingly treating these relationships as purely transactional. In our rush to establish boundaries and protect ourselves from corporate exploitation, we've overcorrected, creating sterile workplaces stripped of human connection.

This timing couldn't be worse. As someone who studies the intersection of technology and workplace culture, I've observed a clear pattern: the more we automate routine tasks, the more our success depends on distinctly human qualities like trust, emotional sensitivity, and the ability to navigate complex interpersonal dynamics. Yet we're systematically dismantling the very cultural foundations that enable these qualities to flourish. It's as if we're entering a boxing match by tying one hand behind our back – at precisely the moment we need every advantage we can get.

The real crisis isn't that AI might replace jobs – it's that we're creating workplace environments that suppress the very qualities that make us irreplaceable. When we treat our colleagues as mere interfaces rather than complex human beings, we don't just damage relationships – we damage our capacity for innovation, creativity, and the kind of deep collaboration that complex problem-solving requires.

Some companies are starting to get it right. When I look at examples like IKEA, who chose to retrain their call center workers as interior design advisors rather than simply replacing them with chatbots, I see a glimpse of what's possible. They recognized something profound: you can't automate the human ability to understand what a frustrated customer really needs, or the intuition to read between the lines of what they're saying.

This is what I call the "human edge" – and it's far more nuanced than most leadership teams realize. It's the marketing manager who can sense team tension during a video call and address it before it derails a project. It's the sales representative who builds such strong relationships that clients stay loyal through market upheavals. It's the team leader who knows exactly when to push for more and when to show compassion. These aren't just nice-to-have soft skills – they're becoming our most valuable business assets.

But here's the challenge: we're still trying to measure workplace success like it's 1990. We track productivity metrics, sales numbers, and project timelines, but how do we quantify someone's ability to defuse a tense client situation? How do we measure the value of a team leader who creates an environment where people feel safe to innovate? These human capabilities – empathy, emotional intelligence, relationship building, creative problem-solving – are increasingly what separate successful companies from failing ones, yet they're nearly impossible to capture in a performance review.

When I talk to business leaders, I tell them bluntly: if a job can be reduced to a process, AI will eventually do it better. Our value lies in all the messy, human things that happen between the bullet points of a job description. Instead of asking "How many tasks did you complete?" we should be asking "How did you help your team navigate that difficult change?" Instead of training people to follow processes, we should be developing their ability to build relationships and navigate complexity.

It's time we started treating these human capabilities not as soft skills, but as core business competencies. The question isn't whether AI will change work – it's whether we'll use this moment to finally build workplaces that enhance rather than diminish our humanity.

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Nada Ahmed is the founding partner at Houston-based Energy Tech Nexus and author of Amazon Bestseller “Determined to Lead- The Disruptive Woman's Guide to Stop Playing Small and Transform your Career through Agile Leadership.”

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Oxy officially announces CEO transition, names successor

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Houston-based Occidental (Oxy) has officially announced its longtime CEO's retirement and her successor.

Oxy shared last week that Vicki Hollub will retire June 1. Reuters first reported Hollub's plan to retire in March, but a firm date had not been set. Hollub will remain on Oxy's board of directors.

Richard Jackson, who currently serves as Oxy's COO, will replace Hollub in the CEO role.

“It has been a privilege to lead Occidental and work alongside such a talented team for more than 40 years," Hollub shared in a news release. "Following the recently completed decade-long transformation of the company, we now have the best portfolio and the best technical expertise in Occidental’s history. With this strong foundation in place, a clear path forward and a leader like Richard, who has the experience and vision to elevate Occidental, now is the right time for this transition. “I look forward to supporting Richard and the Board through my continued role as a director.”

Hollub has held the top leadership position at Oxy since 2016 and has been with the energy giant for more than 40 years. Before being named CEO, she served as COO and senior executive vice president at the company. She led strategic acquisitions of Anadarko Petroleum in 2019 and CrownRock in 2024, and was the first woman selected to lead a major U.S. oil and gas company.

Hollub also played a key role in leading Oxy's future as a "carbon management company."

Jackson has been with Oxy since 2003. He has held numerous leadership positions, including president of U.S. onshore oil and gas, president of low carbon integrated technologies, general manager of the Permian Delaware Basin and enhanced oil recovery oil and gas, vice president of investor relations, and vice president of drilling Americas.

He was instrumental in launching Oxy Low Carbon Ventures, which focuses DAC, carbon sequestration and low-carbon fuels through businesses like 1PointFive, TerraLithium and others, according to the company. He also serves on the Oil and Gas Climate Initiative’s Climate Investment Board and the American Petroleum Institute’s Upstream Committee. He holds a bachelor's degree in petroleum engineering from Texas A&M University.

Jackson was named COO of Oxy in October 2025. In his new role as CEO, he will also join the board of directors, effective June 1.

“I am grateful to be appointed President and CEO of Occidental and excited about the opportunity to execute from the strong position and capabilities that we built under Vicki’s leadership,” Jackson added in the release. “It means a lot to me personally to be a part of our Occidental team. I am committed to delivering value from our significant and high-quality resource base. We have a tremendous opportunity to focus on organic improvement and execution to deliver meaningful value for our employees, shareholders and partners.”

Texas data center proposed by U.S. Army could use more power than El Paso

Big Data

The U.S. Army is proposing developing a gargantuan, 3-gigawatt data center complex on Fort Bliss property that within a few years would consume more electricity than all of El Paso Electric’s 460,000 customers combined – even as questions about its development, water usage and air pollution remain unanswered.

If built, it would be the third major data center project in the El Paso region, along with Meta Platform’s $10 billion facility in Northeast and the $165 billion Project Jupiter campus that Oracle and OpenAI are building in Santa Teresa, New Mexico. The combined scale and size of the three facilities could quickly transform the Borderland into one of the nation’s core hubs of power generation and AI infrastructure.

The publicly-traded investment firm Carlyle Group would pay to build and operate the Fort Bliss data center – one of several planned in a national rollout under President Donald Trump’s administration to rapidly increase artificial intelligence technology for the Department of Defense.

At Fort Bliss, the Army is “targeting an initial operating capacity of about 100 megawatts on the compute side” by next year, David Fitzgerald, deputy undersecretary of the Army, said during a meeting with reporters April 22. An official estimated cost for the project has yet to be released.

By 2029, the complex on military land in far East El Paso would require 3 gigawatts of electricity, Fitzgerald said. By comparison, El Paso Electric currently maintains about 2.9 gigawatts of generation capacity across its entire system that spans from Hatch, New Mexico, to Van Horn, Texas. The highest customer demand the power company has ever seen was just over 2.3 gigawatts during the summer of 2023.

And whether most El Pasoans are on board with the rapid buildout of another data center here is not a question that Army leadership is asking at this point.

“What we’re trying to do is find where are the common interests, common ground that we can solve for?” Fitzgerald said, referring to coordinating with El Paso city leaders on the data center project.

“The state of modern warfare and future warfare is largely going to depend on the ability to capture, process and utilize massive amounts of data,” he said. “So, the reality is, this is a strategic priority, not just for the Army, but for the entire Department of War. So, we need these capabilities, and we need to put them somewhere.”

Combined-cycle natural gas turbines are the “most likely” source of electricity generation for the facility, said Jeff Waksman, an assistant secretary of the Army and former member of Trump’s first administration.

Waksman said the facility would undergo environmental review before construction starts.

Still, there are far more outstanding questions than answers about the proposed Fort Bliss data center.

It’s unclear if the facility would connect to El Paso Water’s water system. The city-owned water utility pointed out that Fort Bliss Water provides water service for the installation. However, El Paso Water can provide “backup” service to the base, according to the project solicitation documents.

“EPWater was just recently brought into the discussion, and we only have preliminary information,” El Paso Water said in a statement. “The construction and water use would be entirely on federal property.”

El Paso Electric said it’s also uncertain whether the data center will connect to the utility’s power grid and will figure that out in the future. To date, the Army hasn’t made a formal request for service from El Paso Electric.

Officials from the U.S. Army “confirmed that questions regarding the power source and whether it will be connected to the regional grid remain under review and have plans to establish a data center with a projected demand of 3 gigawatts,” El Paso Electric said in a statement. “Ultimately, decisions about these matters will be made by Fort Bliss leadership, and we defer to them for further comment.”

A representative with Carlyle Group at a recent community meeting didn’t answer questions or provide details about the proposed data center facility and the related power generation source.

Carlyle Group did not respond to a request for comment.

Army officials said they don’t yet have a definitive agreement in place with Carlyle, which was conditionally selected to enter into exclusive negotiations, so few details are finalized.

However, the Army has set a short timeline to start operating by late 2027. That means construction will have to start soon, Fitzgerald said.

“The ideal endstate is that we would be at least (operational) by the end of ’27, which is moving pretty quick,” Fitzgerald said. “That would mean construction would need to begin in the not-so-distant future.”

Water, electricity concerns

Meeting three gigawatts of electricity demand with natural gas-fired turbines – cited by Army officials as the most likely power source – would likely produce huge amounts of greenhouse gases in a central area of El Paso, such as carbon dioxide, as well as other harmful pollutants including particulate matter.

And even if the data center doesn’t take service from El Paso Water and instead receives water from wells managed by Fort Bliss, it would rely on groundwater pumped out of the Hueco Bolson aquifer, the city’s main source of water.

The solicitation issued by the Army cites water risk for El Paso as “extremely high” and notes that most of Fort Bliss’ water supply comes from wells within the installation.

Fitzgerald said the Army is aware of the public’s concern that the data center could unsustainably guzzle El Paso’s groundwater to cool the data center’s computer servers. He said the facility will be “water neutral.”

It’s also not clear how the project could replace the same amount of water that it consumes.

It’s possible the Kay Bailey Hutchison Desalination Plant – co-owned by El Paso Water and the U.S. Army – could play a role in making the data center water neutral. But El Paso Water said it has no details about how the data center facility could achieve water neutrality.

El Paso Water is “more than willing to continue to share ideas for best practices in sustainability to help protect our regional water resources,” the utility said in its statement.

As far as electricity generation, Army officials said they don’t know if El Paso Electric would build a new power plant to serve the data center. It’s also possible that Carlyle Group or another private company could build its own power generation source for the data center that’s isolated from the power grid El Pasoans use every day.

“We have to decide whether El Paso Electric is going to be the ones building whatever is coming, or if this is going to be some independent power producer,” Waksman said.

El Paso Electric is planning to develop a 366 megawatt power plant made up of over 800 small gas generators to power Meta’s data center. The utility will build more generation in the coming years to meet 1 gigawatt of total demand from Meta’s facility. Meanwhile, as the technology giant Oracle develops Project Jupiter, the company said Monday it is seeking to power the campus using 2.45 gigawatts of fuel cell power systems provided by the company Bloom Energy.

For perspective, 3.45 gigawatts – the combined projected demand of those two major data centers – is enough electricity to power as many as a million homes, depending on the time of day and weather.

The Fort Bliss project would have to meet environmental regulatory requirements, and the developer needs to include a plan for providing utilities and infrastructure needs such as access to the facility, according to a request for proposals issued by the Army in December 2025. Army officials emphasized the project would not impact El Pasoans’ water or electric bills.

Who is Carlyle Group?

Carlyle Group is a global investment management firm that oversees $477 billion of assets from entities such as pension funds.

The company invests that money by buying businesses ranging from wine producers to Asian telecommunications companies, or by developing infrastructure projects such as renewable energy generation and data centers. The company in 2025 posted distributable earnings of nearly $1.7 billion on $4.8 billion in revenue.

The Army wants to build the facility at Fort Bliss in partnership with Carlyle because the installation has a large amount of available, unused land and because of the water and electricity infrastructure already in place in El Paso, Fitzgerald said.

The Carlyle data center planned for El Paso is part of a wider U.S. military effort to quickly build infrastructure that supports the use of artificial intelligence — both on the battlefield and in running its day-to-day operations, according to government documents.

Army officials nodded to the use of AI in drone warfare and targeting systems. And a hyperscale data center facility can also securely house information such as the military’s cloud database that details pay and entitlements for every U.S. soldier, said Maj. Gen. Curtis Taylor, commanding general of the 1st Armored Division and Fort Bliss.

Data centers are “essential parts of power projection,” Taylor said. “But we have to protect those servers. And that’s why there’s great utility in building that infrastructure on military installations.”

The Fort Bliss facility would be located on a plot of land near the intersection of Loop 375 and Montana Avenue. The site is just east of the Camp East Montana immigrant detention facility, and near El Paso Electric’s gas-fired Montana power station.

The plan is for Carlyle to utilize the majority of the data center’s capacity for its business needs, and the military would have access to a more secure portion of the data center for its own uses.

The Army is developing another similar data center project in Dugway, Utah. Other Army bases identified as potential sites include Fort Hood in Texas and Fort Bragg in North Carolina.

The U.S. Air Force in October issued a solicitation saying it is “accepting proposals for the development of Artificial Intelligence data centers,” on unused land at different bases, including in California, Georgia, Arizona and Tennessee. The push was enabled by executive orders signed by Trump that seek to speed up permitting and development timelines for AI data centers.

Would the Fort Bliss data center pay taxes?

A privately-financed data center on Fort Bliss would likely have to pay some taxes – unlike on-base government facilities – but there’s a lot of uncertainty.

Carlyle Group is leasing the land for the data center under an “enhanced use lease” that allows branches of the military to rent under-used land on bases.

Land on federal installations is not subject to state or local taxes. However, the statute that authorizes the U.S. military to lease excess land to private entities says that “the interest of a lessee of property leased under this section may be taxed by State or local governments.”

So, while the land the data center is built on would not be subject to taxation, the structures housing the data center could be subject to local property taxes.

But it depends on how the deal is structured, including factors such as whether Carlyle or the Army ultimately takes ownership of the buildings.

The Army in January awarded a contract to Korean-owned Hanwha Defense USA, which will invest $1.3 billion to develop a munitions factory at a base in Pine Bluff, Arkansas, using an enhanced use lease.

Fitzgerald, the Army undersecretary, acknowledged the public pushback to other data centers such as Meta and Project Jupiter. But he said the Army wants to ensure the project is developed “the right way.”

“There are always elements that will kind of make this an ‘us versus them’ sort of a construct, but I don’t think we view it that way from the Army,” he said. “I think there’s a path here that will benefit not just the installation, but the community as well.”

CenterPoint launches real-time tracker to map Houston’s power grid upgrades

resiliency plan

Houstonians can now track electronic infrastructure improvements via CenterPoint’s new Community Progress Tracker, part of the company’s ongoing Greater Houston Resiliency Initiative.

The tracker allows users to search by zip code and see completed work in real time, as well as updates on upcoming projects that highlight infrastructure improvements and efforts to strengthen the power grid in the face of extreme weather. Users can view icons on a map that track automation and intelligence projects, storm-resilient pole and equipment installations, undergrounding work and tree trimmings.

CenterPoint had installed 10,000 storm-resilient poles, cleared 1,600 miles of higher-risk vegetation, completed 99 miles of power line undergrounding and hardened 220 miles of power lines by the end of Q1 2026, according to the company.

For the rest of 2026, CenterPoint aims to install 35,000 stronger, storm-resilient poles, clear high-risk vegetation from 8,000 miles of power lines and harden 500 transmission structures against storms.

Via centerpointenergy.com

“We are proud of the progress made in 2025, which helped deliver more than 100 million fewer outage minutes when compared to 2024, and we are determined to make even more progress in 2026 as we work toward our defining goal: building the nation's most resilient coastal grid,” Nathan Brownell, CenterPoint's vice president of resilience and capital delivery, said in a news release. “To date, we are ahead of schedule in making critical 2026 GHRI improvements, and we will continue to build the stronger, smarter infrastructure necessary to further improve systemwide reliability and strengthen resiliency, reducing the likelihood and impact of outages for our customers.”
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