Trending News Tidbits

Halliburton's clean energy cohort tops trending news for January 2025

Halliburton Labs has named its latest cohort. Photo courtesy of Halliburton

Editor's note: We're taking a look back at the top energy transition headlines from the second half of January 2025. Here are the five most-read EnergyCaptialHTX stories, from Halliburton's new clean energy cohort to Texas' top ranking among U.S. manufacturing hubs.

1. Halliburton names 5 clean energy startups to latest incubator cohort

Texas-based 360 Energy is part of Halliburton's new clean energy cohort. Photo courtesy of 360 Energy

Halliburton Labs has named five companies to its latest cohort, including one from Texas. All of the companies are working to help accelerate the future of the energy industry in different ways. The incubator aims to advance the companies’ commercialization with support from Halliburton's network, facilities and financing opportunities. Continue reading.

2. Houston Auto Show returns this month as part of new innovative coalition

The Houston Auto Show and Houston Boat Show (Houston AutoBoative) run from Jan. 2–Feb. 2. Photo via Houston Auto Show/Facebook

The Houston Auto Show and Houston Boat Show (Houston AutoBoative) returned to NRG Center this month, and for the first time, the popular events are part of the Automotive Experience Alliance (AEA). Launched in October, the AEA is a coalition of about 30 auto shows that aim to drive innovation and standardization throughout the auto show industry. Continue reading.

3. Being prepared: Has the Texas grid been adequately winterized?

How has the Texas grid improved since Winter Storm Uri in 2021? Getty Images

As Houston braced for historic winter weather, guest columnist Sam Luna, director at BKV Energy, asked the question on many Texans' minds each winter. In this article, Luna explores how the Texas grid has improved since Winter Storm Uri in 2021. Continue reading.

4. Geothermal exec on Houston expansion, commercialization and more

Axel-Pierre Bois, XGS Energy's Chief Technology Officer. Photo courtesy XGS Energy

Challenges in energy transition often center around two questions: Where will organizations find the resources? And how will projects be financed? XGS Energy's next-gen closed-loop geothermal well architecture addresses both issues head-on. The California-based company saw massive growth in the Houston market last year and recently completed a 100-meter field demonstration in central Texas, marking a major milestone for its technology's commercialization and potential for scale. In an interview with EnergyCapital, Axel-Pierre Bois, XGS's Chief Technology Officer, shares what drew him to the geothermal space, why XGS is expanding in Houston and what the company's plans are for the year ahead. Continue reading.

5. Texas ranks as No. 2 manufacturing hub in U.S., behind only California

A new study puts Texas at No. 2 among the states when it comes to manufacturing. Photo via Getty Images

Texas ranks among the country’s biggest hubs for manufacturing, according to a new study. The study, conducted by Chinese manufacturing components supplier YIJIN Hardware, puts Texas at No. 2 among the states when it comes to manufacturing-hub status. California holds the top spot. Continue reading.

Trending News

A View From HETI

Texas has also officially claimed the No. 1 spot in the U.S. for existing and under-construction data center capacity, according to the report. Photo courtesy JLL

Houston stands to benefit from constraints dogging data center markets elsewhere in Texas, a new report indicates. This comes against the backdrop of Texas surpassing Virginia as the country’s top state for data centers — and amid deepening opposition to these facilities.

The report, published by commercial real estate services provider JLL, foresees Houston continuing to gain traction in data center development as occupants seek “scalable alternatives” to Texas markets experiencing supply-and-demand imbalances.

The Houston area currently hosts data centers with 287 megawatts of capacity, well below capacity levels in the Dallas-Fort Worth, Austin-San Antonio and West Texas markets.

However, the region is witnessing a spike in capacity, with 390 megawatts of capacity under construction, according to the report. Counting newly built data centers, Houston would be home to 677 megawatts of data center capacity, an 80 percent increase from the current inventory, the report says.

Developers target West Houston for large-scale data centers

Developers increasingly are evaluating West Houston and surrounding areas for large-scale campuses capable of supporting behind-the-meter power, according to the report. Data center development in the region is likely to remain concentrated in those areas, where power is readily accessible and flood risks are lower, the report adds.

The report notes that Houston is evolving from a traditionally enterprise-focused co-location market for data centers into a “credible large-scale growth market,” buoyed by rising interest in hyperscale facilities and increased development activity.

Corporate, energy and healthcare users are still active in Houston’s data center market, the report says, with cloud computing and technology tenants making inroads. The Houston market absorbed 25 megawatts of data center capacity in the first half of this year.

Texas crowned No. 1 state market for data center capacity

The growth of Houston’s data center sector is occurring in tandem with Texas’ ascent as a data center market. The report shows Texas now boasts 26 gigawatts of existing and under-construction capacity, followed by Virginia at 13 gigawatts.

JLL declares that “Texas has cemented its position as the state for data centers.”

The “frontier” markets of West Texas, the Carolinas, Louisiana, and Ohio account for 77 percent of all capacity being developed nationwide, according to the report.

As evidence of Texas’ heightened stature in the data center sector, commercial real estate services provider Cushman & Wakefield recently ranked Dallas as the world’s No. 1 primary data center market, while Austin-San Antonio led the list of second-tier markets and West Texas topped the third-tier ranking.

These rankings underscore “Texas’ growing importance as a large-scale AI infrastructure hub,” Cushman & Wakefield says.

Opposition to new data centers in Texas grows

While businesses see the value of adding data centers in Texas, the state’s data center boom is rattling residents and politicians alike.

A recent University of Houston survey finds that although 85 percent of Houston-area residents use AI—a key driver of data center growth—nearly 63 percent oppose construction of a data center within a mile of their home. Experts estimate 6.5 gigawatts of capacity, or roughly one-fifth of the total U.S. pipeline, will join the Texas power grid by 2030, with Houston serving as a main hub.

A poll taken recently by the University of Texas/Texas Politics Project yielded similar results: 56 percent of Texans oppose development of data centers in their community.

“Texas’ grid is already facing pressure from population growth, extreme weather and rising industrial demand,” UH researcher Soran Mohtadi says. “When residents say they are concerned about data centers, they’re mostly referring to grid reliability and affordability.”

Data center backlash prompts action by politicians

Responding to Texans’ concerns over power and water consumption, Gov. Greg Abbott recently imposed a moratorium on new data centers in the state to allow time for regulatory agencies to assess the projects’ impact. Meanwhile, some state lawmakers are calling for a crackdown on data center development.

Last month, a state legislative committee chaired by Sen. Joan Huffman, a Houston Republican, held a hearing on the effects of state sales tax exemptions given to data centers. The cost of these exemptions has climbed from an estimated $14.6 million in 2014-15 to a projected $3.3 billion in 2028-29, according to law firm Holland & Knight.

Two backers of massive data centers in Texas, social media giant Meta Platforms and AI powerhouse OpenAI, agreed this week to comply with Abbott’s recently issued standards regarding data center projects—and more have followed suit.

Dan Diorio, executive vice president of state policy and government affairs for the industry-backed Data Center Coalition, fears backlash against data centers may curb economic growth in Texas.

“I worry that communities that put moratoriums ultimately create too much uncertainty and unpredictability, and what that ultimately means is that those communities may shut themselves off to data center development but also may shut themselves off to broader economic development,” Diorio told Fox 7 News in Austin.

Trending News