Texas legislators carved out $715 million for nuclear, semiconductor and other economic development projects in the 2025 session. Photo via Getty Images

The Greater Houston Partnership is touting a number of victories during the recently concluded Texas legislative session that will or could benefit the Houston area. They range from millions of dollars for energy projects to billions of dollars for dementia research.

“These wins were only possible through deep collaboration, among our coalition partners, elected officials, business and community leaders, and the engaged members of the Partnership,” according to a partnership blog post. “Together, we’ve demonstrated how a united voice for Houston helps drive results that benefit all Texans.”

In terms of business innovation, legislators carved out $715 million for nuclear, semiconductor, and other economic development projects, and a potential $1 billion pool of tax incentives through 2029 to support research-and-development projects. The partnership said these investments “position Houston and Texas for long-term growth.”

"Nuclear power renaissance"

House Bill 14 (HB 14), for instance, aims to lead a “nuclear power renaissance in the United States,” according to Texas Gov. Greg Abbott’s office. HB 14 establishes the Texas Advanced Nuclear Energy Office, and allocates $350 million for nuclear development and deployment. Two nuclear power plants currently operate in Texas, generating 10 percent of the energy that feeds the Electric Reliability Council Texas (ERCOT) power grid.

“This initiative will also strengthen Texas’ nuclear manufacturing capacity, rebuild a domestic fuel cycle supply chain, and train the future nuclear workforce,” Abbott said in a news release earlier this year.

One of the beneficiaries of Texas’ nuclear push could be Washington, D.C.-based Last Energy, which plans to build 30 micro-nuclear reactors near Abilene to serve power-gobbling data centers across the state. Houston-based Pelican Energy Partners also might be able to take advantage of the legislation after raising a $450 million fund to invest in companies that supply nuclear energy services and equipment.

Reed Clay, president of the Texas Nuclear Alliance, called this legislation “the most important nuclear development program of any state.”

“It is a giant leap forward for Texas and the United States, whose nuclear program was all but dead for decades,” said Clay. “With the passage of HB 14 and associated legislation, Texas is now positioned to lead a nuclear renaissance that is rightly seen as imperative for the energy security and national security of the United States.”

Infrastructure

In the infrastructure arena, state lawmakers:

  • Approved $265 million for Houston-area water and flood mitigation projects, including $100 million for the Lynchburg Pump Station.
  • Created the Lake Houston Dredging and Maintenance District.
  • Established a fund for the Gulf Coast Protection District to supply $550 million for projects to make the coastline and ship channel more resilient.

Dementia institute

One of the biggest legislative wins cited by the Greater Houston Partnership was passage of legislation sponsored by Sen. Joan Huffman, a Houston Republican, to provide $3 billion in funding over 10 years for the Dementia Prevention and Research Institute of Texas. Voters will be asked in November to vote on a ballot initiative that would set aside $3 billion for the new institute.

The dementia institute would be structured much like the Cancer Prevention and Research Institute of Texas (CPRIT), a state agency that provides funding for cancer research in the Lone Star State. Since its founding in 2008, CPRIT has awarded nearly $3.9 billion in research grants.

“By establishing the Dementia Prevention and Research Institute of Texas, we are positioning our state to lead the charge against one of the most devastating health challenges of our time,” Huffman said. “With $3 billion in funding over the next decade, we will drive critical research, develop new strategies for prevention and treatment, and support our healthcare community. Now, it’s up to voters to ensure this initiative moves forward.”

More than 500,000 Texans suffer from some form of dementia, including Alzheimer’s disease, according to Lt. Gov. Dan Patrick.

“With a steadfast commitment, Texas has the potential to become a world leader in combating [dementia] through the search for effective treatments and, ultimately, a cure,” Patrick said.

Funding for education

In the K-12 sector, lawmakers earmarked an extra $195 million for Houston ISD, $126.7 million for Cypress-Fairbanks ISD, $103.1 million for Katy ISD, $80.6 million for Fort Bend ISD, and $61 million for Aldine ISD, the partnership said.

In higher education, legislators allocated:

  • $1.17 billion for the University of Houston College of Medicine, University of Texas Health Science Center at Houston, UT MD Anderson Cancer Center, and Baylor College of Medicine.
  • $922 million for the University of Houston System.
  • $167 million for Texas Southern University.
  • $10 million for the Center for Biotechnology at San Jacinto College.
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Baker Hughes teams up with Oklahoma co. to advance geothermal development

geothermal partnership

In recent months, Houston-based energy corporation Baker Hughes has launched multiple partnerships to expand geothermal energy extraction across the United States. The latest, a deal with Oklahoma-based Helmerich & Payne Inc. (H&P), was announced Wednesday.

As part of the deal, H&P will provide a geothermal-capable land drilling rig, while Baker Hughes will contribute technology and expertise. The rig is expected to be deployed later this year, according to a news release.

“Geothermal energy plays a critical role in meeting growing power demand by providing clean, reliable baseload generation,” Amerino Gatti, executive vice president of oilfield services & equipment for Baker Hughes, said in the release. “This collaboration reflects a deliberate step to move its development in the U.S. from concept to reality. By working together, Baker Hughes and Helmerich & Payne are helping customers advance these critical energy projects with greater confidence and deliver reliable, sustainable power.”

Investment in the geothermal energy sector is currently exploding in the U.S., having grown by at least 1,000 percent just in the last seven years, according to a recent report by Rocky Mountain Institute.

On one hand, only about 1 percent of the American energy grid currently uses geothermal, but on the other, the U.S. holds roughly 25 percent of the world’s geothermal capacity. Harnessing that power becomes even more attractive as conflicts in Russia and Iran continue to hamstring energy markets from those countries and revitalize interest in renewable energy.

Baker Hughes has been at the forefront of the geothermal boom. This new deal with H&P combines H&P’s drilling platform technology with Baker Hughes’s subsurface and energy extraction support technologies.

“This agreement underscores Helmerich & Payne’s commitment to supporting emerging energy opportunities through our drilling technologies and operational expertise,” H&P President and CEO Trey Adams added in the release. “We are pleased to collaborate with Baker Hughes to support the advancement of geothermal development in the United States.”

The deal with H&P is just one of several recent ones Baker Hughes has closed. In March, they announced support for XGS’s geothermal extraction projects in New Mexico, which are being used to meet the increasing demands of data centers in the state. Last May, Fervo Energy selected Baker Hughes to supply equipment for its flagship geothermal project in Utah.

Houston renewables developer signs agreement with Meta for new solar project

power deal

Houston-based EDP Renewables North America has signed a long-term power purchase agreement with Meta, the parent company of Facebook and Instagram, for its forthcoming Cypress Knee Solar project.

The 250‑megawatt solar project will be built in Arkansas and is expected to come online by 2028, according to a news release from EDPR. The company says the project will generate approximately $25 million in new revenue for Chicot County once operational.

“Cypress Knee Solar and our broader portfolio of projects with Meta are helping power a reliable, modern U.S. electric grid—the backbone of American innovation and long-term economic growth,” Sandhya Ganapathy, CEO of EDPR NA, said in the release. “These investments strengthen local communities, create durable economic value, and ensure that progress is built on a resilient, sustainable foundation.

This is Meta's third power purchase agreement with EDPR. The tech giant is now contracted to a renewable capacity of 545 megawatts with EDPR. Meta and EDPR also collaborated on the 200-megawatt Brittlebush Solar Park to support Meta's data center in Mesa, Arizona.

“Through our partnership with EDPR, Cypress Knee Solar will bring new generation to the Arkansas grid, creating local jobs and delivering economic benefits to the community. We’re proud to expand our collaboration with EDPR,” Amanda Yang, head of clean and renewable energy at Meta, added in the release.

EDPR operates 61 wind farms, 29 solar parks and four energy storage sites across North America. Its other customers include other tech companies like Amazon and Microsoft.

Buoyed by $1.3B sales backlog, microgrid company ERock files for IPO

eyeing ipo

Another energy company in Houston is going public amid a flurry of energy IPOs.

Houston-based ERock Inc., which specializes in utility-grade onsite microgrid systems for data centers and other customers, has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to sell its shares on the New York Stock Exchange.

The ERock filing follows the recent $1.9 billion IPO of Houston-based Fervo Energy, a provider of geothermal power that’s now valued at $7.7 billion.

Another Houston energy company, EagleRock Land, just went public in a $320 million IPO that values the company at $3 billion. EagleRock owns or controls about 236,000 acres in the Permian Basin, earning money from royalties, fees, easements, water services and other revenue streams tied to drilling on its land.

According to Barron’s, more than a dozen energy and energy-related companies in the U.S. have gone public since the beginning of 2025, with the bulk of the IPOs happening this year.

ERock’s SEC filing doesn’t identify the per-share pricing range for the IPO or the number of Class A shares to be offered. ERock is a portfolio company of Energy Impact Partners, a New York City-based venture capital and private equity firm that invests in energy companies.

The company previously did business as Enchanted Rock. ERock Inc., formed in January, will function as a holding company that controls predecessor company ER Holdings Ltd.

In 2025, ERock generated revenue of $183.1 million, up 42.5 percent from the previous year, according to the IPO filing. It recorded a net loss of $59 million last year.

As of March 31, ERock boasted a sales backlog of nearly $1.3 billion, up 779 percent on a year-over-year basis. The company attributes most of that increase to greater demand from data centers.

The company primarily serves the power needs of data centers, utilities, industrial facilities, and commercial buildings. Its biggest markets are Texas and California.

“Several U.S. markets, such as Texas and California, face especially acute reliability risks,” ERock says in the SEC filing. “Texas already shows rapid load-growth pressures tied to data centers and industrial expansion, while California faces grid congestion, long interconnection queues, and above-average vulnerability to extreme heat- and weather-driven outages.”

Since its founding in 2018, ERock has installed microgrid systems at more than 400 sites with a capacity of about 1,000 megawatts. Customers include ComEd, Foxconn, H-E-B, Microsoft and Walmart.

By the end of this year, the company plans to expand its production of microgrid systems to a capacity of about 1.2 gigawatts with the opening of its Hyperion facility in Houston.

John Carrington leads ERock as CEO. He joined ER Holdings last year as chairman and CEO. Carrington previously was CEO of Houston-based Stem, a public company that offers AI-enabled clean energy software and services. Earlier, he spent 16 years at General Electric.