The 1-gigawatt site will be constructed at a cost of approximately $8 billion. Photo courtesy ECL

The Houston area will soon be home to what's being lauded as the first fully sustainable 1-gigawatt data center on a 600-acres site east of Houston.

Data center-as-a-service company ECL, headquartered in Mountain View, California, announced its plans to build the ECL TerraSite-TX1. Hardware and cloud service company Lambda will serve as its first tenant. Lambda and other AI leaders will get access to necessary space and power for the next wave zero emission innovations.

Phase 1 of TerraSite-TX1 will be complete by summer of 2025 with a cost of approximately $450 million. The 50 megawatt of data center capacity will be utilized by data center cloud and AI cloud operators. The 1-gigawatt site will be constructed at a cost of approximately $8 billion. The funding will come from ECL and financial partners.

ECL Terrasite-TX1 comes at a needed time for Texas with The Electric Reliability Council of Texas stating on June 12 that the state’s power grid needs will grow approximately double by 2030. This is due in part to the growth of data centers and AI. The ECL Terrasite-TX1 is built to help eliminate the stress on the state’s power grid and help facilitate “state-level economic development and growth of the AI industry,” according to a news release.

ECL houston data centerThe project will span over 600 acres east of Houston. Rendering courtesy ECL

ECL data centers are built to be modular, which allows for expansion in 1-megawatt increments. They are “ built to suit” and delivered in less than 12 months, which is shorter than the industry standard of 36 to 48.

“While others talk about delivering off-grid, hydrogen-powered data centers in five, ten, or 20 years, only ECL is giving the AI industry the space, power, and peace of mind they and their customers need, now,” Yuval Bachar, co-founder and CEO of ECL, says in a news release. “The level of innovation that we have introduced to the market is unprecedented and will serve not only us and our customers but the entire data center industry for decades to come.”

ECL’s ECL-MV1 is the world’s first off-grid, hydrogen-powered modular data center that operates 24/7 with zero emissions, less noise, and a negative water footprint that replenishes water to the community. ECL-MV1 offers a 10x increase in “energy efficiency with a power usage effectiveness of 1.05 and a 7-times improvement in data density per rack, which is ideal for AI high-density demand” according to the release.

“The data center technology committed to by ECL is truly transformative in the industry,” Lambda's Vice President for Data Center Infrastructure Ken Patchett adds. “We believe ECL’s technology could unlock a powerful and eco-conscious foundation for AI advancement. This new infrastructure could give researchers and developers essential computational resources while drastically reducing the environmental impact of AI operations.”

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CenterPoint reports grid resilience updates as hurricane season begins

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As hurricane season descends upon the region, CenterPoint Energy has shared the latest update on its Greater Houston Resiliency Initiative (GHRI) that’s been working to make grid upgrades and introduce weather-related tech since 2024.

As of April 2026, CenterPoint had:

  • Replaced more than 65,000 poles with stronger storm-resistant infrastructure
  • Trimmed or cleared more than 10,000 miles of vegetation
  • Undergrounded more than 500 miles of power lines
  • Installed more than 600 automation devices
  • Installed more than 150 weather stations

In May, CenterPoint announced its new Community Progress Tracker, which helps residents track electronic infrastructure improvements. In terms of other technology, CenterPoint has announced its partnership with weather, wildfire and flood modeling software Technosylva. The software is expected to help CenterPoint track weather conditions in advance to better prepare crews.

CenterPoint has also added 150 weather stations to improve weather monitoring, conducted a full-scale hurricane response exercise involving more than 400 employees and completed more than 25,000 hours of FEMA training across more than 800 employees. The company opened a new year-round Emergency Operations Center to help coordinate with emergency response partners, local and state officials, and media during major weather events.

“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, previously said in a news release.

According to the company, the GHRI aims to improve overall grid resiliency and reliability and to reduce outages for customers. CenterPoint projects its efforts can reduce customer outages by 150 million by the end of 2026.

Energy expert: Why Houston's 100-degree days matter more than 5 years ago

guest column

If you are a Houston native or have lived in the city since the 1980s, you likely remember when a 100-degree day was so rare it made the local news. There were heat advisory warnings, with special attention to the midday hours, because the heat exposure carried with it risks like dehydration, heat stroke and extreme exposure to UV rays.

In this new era for our city and state, 100-degree days are becoming more common. Our local weather forecasters still report on the occurrence, but we are no longer able to restrict our activities as heavily.

The climate has changed rapidly, and Texans are navigating our collective response to the increased heat that has serious implications for our health, energy supply, economy and regional life.

Houston Has Always Been Hot, But This Heat is Different

Houston has expanded exponentially in the last few decades, doubling its population from roughly 1.4 million in 1976 to 2.4 million today. When we account for the growth in the surrounding suburbs, the population boom nearly quintuples.

Houston and the surrounding suburbs now total nearly 7 million people, a huge population increase that brings greater demand for energy. This demand impacts our infrastructure, energy availability, consumer costs, workforce productivity and water supply significantly. With these additions comes more asphalt and fewer trees. With less tree cover and green space, heat gets trapped, increasing temperatures in the city.

We are not just inheriting rising temperatures; we are also building hotter cities.

100-Degree Days and The Texas Grid

I have written before about our grid capacity, changes facing Texas, and the strain that we have seen on the grid. While redundancies in the Texas grid are improving, the pace of this change continues to pose challenges for our area.

The extreme heat has now made air conditioning mandatory for a greater percentage of days during the calendar year. AC units (large and small) are no longer cycling on and off as they are designed to run; instead, most systems are running continuously to meet the needs of Texans.

Daily activities and devices, including remote work, the AI boom, physical exercise, children’s playtime, charging multiple devices, and streaming entertainment, require much more cooling than in previous generations, producing a much larger demand on the grid.

Additionally, the way Houstonians live at home has also changed. Homes across America are much larger on average than they were in the 1980’s. Also, with the rise of remote work, there is a greater need for all-day electricity in each individual household. These factors, combined with the exponential increase in the number of devices and appliances used in households, significantly affect energy demand in our region.

Of course, we’re also seeing massive usage of electricity from large business users (warehouses, data centers, and more), including empty office buildings as return-to-office is slower than expected post-pandemic.

Heat is Not the Only Culprit

As Houston is a coastal city, we not only have to contend with 100-degree temperatures, but humidity also adds an extra layer of complexity to our climate. Thanks to the humidity, temperatures stay elevated for longer periods, meaning everything is retaining heat at a higher rate and for longer than ever before.

The heat never really leaves us anymore, as we don’t have cooler nights to help balance these very hot days. The compounding effect of extreme temperatures and high humidity makes energy demand higher in our region than in places like the New Mexico desert.

Economic Impact on Our Region

Extreme heat hits Texans’ wallets long before a weather alert ever pops up. When temperatures stay above 100 degrees for days at a time, air conditioners are basically working overtime, which sends electricity bills climbing.

And the harder those systems run, the more wear and tear homeowners end up dealing with, usually at the worst possible time, like the middle of July when a boom of AC units decide to quit at once. Meanwhile, roads, transformers and other infrastructure are all under more stress than they were originally built for.

There’s also a much bigger ripple effect that people don’t always think about. When it’s dangerously hot outside, construction crews, energy workers, landscapers, and other outdoor industries simply can’t operate the same way, which slows productivity and raises safety concerns.

Cities are also spending more money on cooling centers and heat-related emergency response, and over time, all of those rising costs have a way of showing up somewhere, whether that’s insurance rates, utility costs or the price communities pay to keep up with extreme weather.

The Opportunity for Houston

Texas is becoming a real-time test case for what happens when extreme heat, rapid growth, and massive energy demand all hit at once. While problematic, it also creates a huge opportunity for Houston and the Texas energy sector to lead. If there’s any place equipped to determine what the future of energy resilience looks like, it’s the city that already powers so much of the world’s energy conversation.

And the solution isn’t just “create more electricity.” It’s about building a smarter, more flexible system overall with better grid technology, battery storage, stronger infrastructure, more efficient building, and energy systems that can handle these extreme weather swings without everything feeling stressed at once. The reality is that a lot of what Texas figures out over the next few years could become the blueprint for other cities and states across the country.

Houston is already testing some of these smarter resilience strategies, such as microgrids, stronger substations, and more flexible energy systems designed to keep critical facilities running during major storms or outages. The goal is simple: build a grid that can take a hit without everything feeling strained all at once.

Going Forward

Hotter days are here to stay. We can’t stop our lives amid the extreme heat, so we have to find ways to adapt and we have to do it quickly. If there’s one thing Texas has always done well, however, it’s innovate under pressure. The communities, companies and energy leaders that move fastest now won’t just be responding to the future, they’ll be helping define it.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

Houston lands 27 Fortune 500 headquarters, led by energy heavyweights

HQ leader

Houston is a giant among U.S. hubs for corporate headquarters.

The 2026 Fortune 500 lists 27 companies based in the Houston area, with many energy companies claiming top spots. Houston ties with Chicago for the second-most Fortune 500 headquarters, preceded only by New York City (53). Dallas-Fort Worth is home to 23 Fortune 500 headquarters.

Texas leads the nation for Fortune 500 headquarters (57), with California in the No. 2 spot and New York at No. 3.

“Texas is the undisputed headquarters of headquarters,” Gov. Greg Abbott said in a news release. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”

The 2026 Fortune 500 ranks the largest U.S. corporations based on revenue in fiscal year 2025.

Here’s a rundown of the 27 Fortune 500 companies based in the Houston area.

  • No. 9 ExxonMobil
  • No. 21 Chevron
  • No. 29 Phillips 66
  • No.55 Sysco
  • No. 75 ConocoPhillips
  • No. 89 Enterprise Products Partners
  • No. 103 Plains GP Holdings
  • No. 133 Hewlett Packard Enterprise
  • No. 149 NRG Energy
  • No. 157 Quanta Services
  • No. 164 Baker Hughes
  • No. 173 Occidental Petroleum
  • No. 179 Waste Management
  • No. 201 EOG Resources
  • No. 204 Group 1 Automotive
  • No. 207 Halliburton
  • No. 223 Cheniere Energy
  • No. 236 Corebridge Financial
  • No. 262 Targa Resources
  • No. 266 Kinder Morgan
  • No. 388 Westlake
  • No. 435 CenterPoint Energy
  • No. 438 APA
  • No. 440 Comfort Systems USA
  • No. 455 NOV
  • No. 488 KBR
  • No. 496 Coterra Energy. Oklahoma City, Oklahoma-based Devon Energy and Houston-based Coterra Energy merged in early May, with the combined company retaining the Devon Energy name and the Houston headquarters.

The Greater Houston Partnership notes the Houston area soon will welcome its 28th Fortune 500 company. Expand Energy (formerly Chesapeake Energy), appearing at No. 362 on the 2026 list, says it’s moving its headquarters from Oklahoma City to Spring this year.

As the natural gas producer prepares to relocate to Texas, it’s hunting for a new leader. Nick Dell’Osso stepped down as president and CEO earlier this year. Board Chairman Michael Wichterich is interim president and CEO.

Dell’Osso became president and CEO of Oklahoma City-based Gulfport Energy effective May 28.