AGP Executive Report

Data Centers Under Freeze: Texas Gov. Greg Abbott ordered TCEQ to halt new data center environmental permits pending ERCOT and water audits, as the state weighs grid and water strain from AI-driven demand. Korea-U.S. Energy Deal: South Korea confirmed its first U.S. investment project: a 6.3GW gas-fired combined-cycle plant in Encinal, Texas, with nuclear and Alaska LNG still under negotiation. Pharma Expansion in Houston: Eli Lilly broke ground on a $6.5B Houston site to make the small-molecule GLP-1 Foundayo (orforglipron), targeting 600+ jobs and more domestic API supply. Diesel Pressure on Texas Trucking: Record diesel prices are squeezing truck drivers and could flow into consumer costs, with Texas trucking facing added fuel stress. Oil Market Watch: Crude steadied after a four-day slide as Hormuz supply concerns eased and traders tracked diplomacy around the U.S.-Iran situation. Local Power Reliability: SWEPCO’s East Texas utility pole rebuild aims to cut outages and speed restoration, supported by a Texas Energy Fund grant. Defense Industry: Bell Textron in Amarillo marked the beam-signing milestone for 12 AH-1Z Viper helicopters for Nigeria. Community Build: Habitat for Humanity in Lufkin is calling for volunteers to help raise walls on its next affordable home project. Public Safety: An ICE agent shooting in Austin left a DoorDash driver seriously injured, renewing scrutiny of federal enforcement tactics.

Data Centers & Power: Kodiak Gas Services will supply 76MW of behind-the-meter gas power to a West Texas data center, with deployment starting in Q4 2026, underscoring how Texas is building dedicated generation for AI workloads. Energy Costs: Record-high diesel prices are squeezing Texas and the broader economy, with analysts pointing to Middle East supply risk and Strait of Hormuz disruptions as crude and refined products stay volatile. Oil & Gas Jobs: Texas upstream employment ticked up, adding 400 jobs from July to August, while the sector still supports a large web of indirect and induced work. Grid Reliability & Wildfire Planning: Texas lawmakers learned only eight of 160 fire-prone utility companies have filed required wildfire mitigation plans, raising pressure ahead of upcoming deadlines. Border Funding: Texas Comptroller Don Huffines says DHS approved about $7.5B to reimburse Texas for border security costs, calling it “step one” toward making the state whole. Public Safety: DPS marked Child Passenger Safety Week with reminders on proper car seat use. Local Business/Real Estate: AT&T’s $1.35B Plano HQ moves toward a key site-plan vote as demolition clears the legacy campus. Workforce: Texas Workforce Solutions posted multiple job events across the Rio Grande Valley and beyond.

Energy & Shipping: A shortage of supertankers is pushing long-haul crude costs higher, with Houston-to-Asia shipping now adding roughly $26 a barrel—raising the risk that some distant trades get priced out. Oil Prices: Brent stayed above $100 as Saudi exports recovered, while Strait of Hormuz flow improvements eased near-term pressure even as Middle East tensions kept volatility alive. Manufacturing & Industry: Velocys unveiled its AlphaCore 800 Fischer-Tropsch microchannel reactor, targeting up to 800 barrels/day to scale SAF and e-fuels with fewer reactors. Nuclear Supply Chain: Bechtel and TerraPower are splitting on the Natrium project phase in Wyoming, adding uncertainty for a sector already juggling contractor and schedule strain. Texas Energy Transition: UT Arlington researchers are testing recycled-plastic-modified asphalt to help roads resist extreme heat cracking and buckling. Data Centers & Power: A Hood County commissioner says an AWS data center pitch offered big promises but few specifics, including a push for long property-tax rebates. Cybersecurity: CenterPoint confirmed a customer data breach tied to an internet-facing system, affecting millions of customers across its service footprint. Local Environment: A public meeting is set on Formosa Plastics’ Point Comfort wastewater permit, as groups challenge language they fear could allow plastic discharge into Matagorda Bay. Workforce: Goodwill Industries of Northwest Texas will hold a job fair in Amarillo Monday with roles starting at $13/hour. Public Safety: Austin officials are calling for an independent probe after an ICE officer shot a man during a traffic stop, with protesters gathering at the scene.

Housing & Construction: New home starts in August stayed on a “controlled slowdown” track, with starts down but permits still holding up—an early sign the housing market is cooling rather than collapsing. Mortgage Pressure: Freddie Mac data shows 30-year rates rising to 6.95% after Fed action, keeping housing costs out of reach and hitting builder confidence. Energy Risk: After Iran said the Strait of Hormuz is closed again, oil’s supply risk jumped, raising inflation and profit-margin concerns for the U.S. economy. Texas Grid Planning: Texas is seeking proposals for geothermal, small nuclear, and gas plants on state land to improve grid reliability as demand grows. Ag & Livestock: USDA is funding nearly $2M to fight emerging pests and diseases, while Texas ranchers brace for screwworm fallout and trade impacts. Public Health: CDC/FDA warn that contaminated injectable glutathione “detox” treatments have sickened dozens, including in Texas. Workforce & Industry: Meta’s workforce academy is bringing construction and fiber training to Houston tied to AI/data-center buildouts. Logistics: China freight rates reportedly doubled in six months, adding pressure to shipping costs.

Border Wall & Trade Impacts: The Trump administration has started building the border wall in Big Bend, with Customs and Border Protection saying steel panel installation is underway in a 47-mile stretch of Hudspeth County—separate from a paused project near Big Bend National Park. Energy & Shipping Costs: Crude oil freight is getting dramatically more expensive, with supertanker charter rates topping $1 million a day as the US-Iran conflict tightens global logistics and pushes Gulf-to-Asia shipping premiums higher. Data Centers & Power Use: A US startup, Rune, is pitching “grid-free” AI compute by attaching GPU-ready modular units to existing solar sites that otherwise waste power, aiming for deployments in weeks. Texas Agriculture Under Pressure: Texas pecan growers are eyeing a slightly above-average harvest after a rainy spring helped offset extreme heat, while farmers still face higher energy costs and tariff pressure as Congress struggles to finalize a new farm bill. Local Industry & Infrastructure: Rep. Randy Weber backed the Water Resources Development Act of 2026, advancing Gulf Coast water and port priorities including Sabine-Neches review and funding for Brazoria/Galveston projects. Consumer & Community: A Houston-area “birth tourism” center accused of facilitating foreign births agreed to close after Paxton’s lawsuit, while North Texas volunteers packed about 100,000 meals nationwide for Feed the Country.

Border Wall Buildout in Big Bend: U.S. Customs and Border Protection has begun installing new steel wall panels in Hudspeth County, starting “Big Bend 1,” as part of a broader $46.5B border barrier push—moves landowners and ranchers oppose and that are tied up in legal fights. Texas Energy & Cost Pressure: Diesel prices are climbing again, with Houston County’s lowest reported rate at $5.39/gal and national diesel hitting a record $6.45—an input cost that can ripple into trucking, agriculture, and everyday goods. Drought Stress on Cattle: Research from Oklahoma State and Texas A&M warns that extreme heat and reduced forage are cutting cattle nutrition and raising heat-stress risks for herds and calves. Solar Manufacturing Milestone: Tesla’s $10.1B Texas solar factory cleared a key local tax-incentive vote in the Lamar CISD area, with thousands of jobs projected. Tech & Industry Watch: Tesla’s Optimus robot plant construction is accelerating at its Texas gigafactory, while UBS highlights Palantir, AT&T, and Spotify as top tech/media picks despite mixed 2026 performance. Healthcare Access Snapshot: New Census data shows Texas’ uninsured rate around 16%—far above the national 7.9%—as the state remains the only large one that didn’t expand Medicaid.

Defense Manufacturing: U.S. Defense Secretary Pete Hegseth visited Austin-based Saronic Technologies to highlight autonomous maritime drones and Pentagon efforts to speed up defense contracting. Energy & Markets: Texas diesel hit record highs as crude and yields pressured stocks, while Baker Hughes reported U.S. rigs rose again to the highest level since May 2024. AI & Talent: A new report warns the U.S. could face a shortage of up to 157,000 semiconductor specialists and technicians by 2030 as immigration rules tighten; Texas also faces rising H-1B costs for employers. Border Infrastructure: Trump administration construction began on the Big Bend border wall in Hudspeth County, drawing renewed local opposition. Housing & Infrastructure: A gas leak forced evacuation of hundreds at a Dallas apartment complex; TxDOT also shut northbound US-59/I-69 in Sugar Land for bridge work. Texas Economy: Texas posted the strongest annual job growth in the U.S., adding about 159,400 jobs over the past year. Policy & Consumer Impact: Texas urged insurers to offer storm-resistant home upgrade discounts, and a Houston-area “birth tourism” center was shut down by the AG. Tech in Motion: Tesla added nine more Cybercabs to its Texas robotaxi roster, bringing the state count to 58.

Public Health: The CDC reports 3,471 measles cases in the U.S. as of Sept. 17, up 177 week over week, with 95% tied to outbreaks—an early-season reminder for Texas schools and employers. State Infrastructure & Privacy: TxDOT has suspended new permits for Flock-style license plate reader cameras on state rights-of-way, citing safety and permitting control while opponents push back on privacy. Energy & Industry Jobs: Texas’ upstream oil and gas sector added 400 jobs from July to August, while the state overall posted 159,400 nonfarm jobs over the past year—plus Oracle signed 1.7GW+ of Texas wind supply deals for its AI data centers. Logistics & Real Estate: Link Logistics bought four last-mile facilities in the Dallas-Fort Worth area and Atlanta, expanding its industrial footprint. Water & Agriculture: Texas’ soil and water board received a $3.8M EPA grant to tackle runoff-driven water quality issues across multiple watersheds. Biotech: PHP Biotech says it identified uPAR as the entry receptor for its PHP53-nb cancer nanobody, aiming at imaging-guided patient selection.

Cybersecurity & Chips: Lattice Semiconductor rolled out its Mach-N2 FPGA family aimed at hardening server, network, and industrial control systems against next-gen cyber threats, following a sharp rebound in revenue and margins. AI Infrastructure & Policy: Texas courts and regulators keep circling data-center power and water rules, while a Texas judge ordered Elon Musk’s companies and Apple to turn over a settlement for review in an antitrust fight tied to SpaceXAI. Energy & LNG: Shell-led LNG Canada partners may move Phase 2 toward a final investment decision as early as October, potentially doubling export capacity, as global buyers chase supply security. Oil & Gas Markets: Oil held above $100 a barrel amid Middle East shipping and pipeline disruption risks, even as reports of additional Saudi supply surfaced. Manufacturing & Logistics: Defense Logistics Agency completed an eight-year Warehouse Management System rollout across 24 sites, upgrading how inventory moves through its global network. Agriculture & Food: Houston Rodeo broke ground on a $300M “The Farm” agricultural complex, while Texas dairy and beef market updates tracked shifting prices and supply pressures. Legal & Consumer Protection: Texas AG Ken Paxton warned businesses about a surge in scam demand letters alleging California privacy violations via common website tracking tools. Tech for Business: Primare AI launched Primare P1, an on-prem “appliance” approach that sells client-owned AI hardware with built-in virtual staff.

Renewables for Big Tech: ENGIE will supply up to 568 MW of wind-based renewable power for Oracle’s Texas operations in the ERCOT market, underscoring how major data-heavy firms are locking in cleaner electricity. Grid & Permitting Pressure: A new federal push is gaining momentum to speed energy project approvals, with leaders arguing it’s “quicker to get a college degree” than a permit—an issue Texas utilities and developers feel directly. AI Infrastructure Manufacturing: Wiwynn says a new Texas line in Socorro will drive a major jump in U.S. server production, while Rune launched a modular compute system designed to use stranded solar power—both pointing to faster buildouts for AI workloads. Data Center Water & Power Costs: Texas is moving to penalize data centers that don’t report water use, as public concern about AI’s environmental impact rises. Texas Energy Projects: The PUCT approved the Howard-to-Solstice 765-kV transmission line with a route shift near Uvalde, a move that could affect additional landowners. Workforce Pipeline: The Texas Workforce Commission is awarding TIRA grants for short-term, earn-while-you-learn apprenticeships to meet urgent industrial hiring needs. Transportation & Logistics: Mexico lifted a ban on empty-truck crossings at Eagle Pass after hundreds of tractors were stranded, easing cross-border freight flow. Housing Supply Rules: A new Texas law bars cities from outright banning manufactured housing, forcing zoning updates to expand affordable options.

Data & Power for AI Buildout: H&MV Engineering says it will add 1,000 U.S. jobs over five years as it sets up a Dallas North American HQ, pointing to supply-chain and early design work as the real bottlenecks for energizing data center campuses. Autonomous Trucking Watch: Volvo Autonomous Solutions says fully driverless 18-wheelers are coming to North Texas routes, while attorneys warn about how these systems handle unexpected hazards. Energy & Nuclear Markets: A new comparison of Vistra, Constellation, and Talen frames nuclear-heavy utilities as key plays for AI-driven electricity demand. Trademark Fight in Austin: Tesla, SpaceX, and SpaceXAI sue to block a “Terafab” trademark dispute in federal court, arguing the name doesn’t infringe. Public Health in Agriculture: Texas hospitals report a rise in chronic kidney disease of unknown origin among young farm workers, with heat exposure and limited access to care flagged as major factors. Local Development: Bryan approves a $350,000 performance-based grant to redevelop the historic Hotel Bryan and Ryan Building with small “micro-business” spaces. Supply Chain Security: CBP hosts a Dallas summit focused on knowing supply chains to reduce trade and cargo risk. Oil Patch Pulse: Oil prices ease as Saudi restores a key pipeline, but crude remains elevated amid global disruption fears.

Solar Manufacturing: SEG Solar began commercial-scale production of heterojunction (HJT) modules at its Tomball #1 plant, pushing its U.S. capacity to 6 GW, with a second Houston-area 4.6 GW facility under construction for 2027. Wind Maintenance: CNC Onsite plans to open a Houston-based U.S. subsidiary to deliver crane-free uptower repairs for wind turbines, aiming to cut maintenance costs and downtime. Energy Policy & Costs: The G20 Energy Summit wrapped in Houston with a focus on lowering consumer energy costs, while U.S. power demand growth is expected to be driven heavily by data centers. Grid & Permitting: ERCOT disclosed conditional capacity for AI deployments as Texas continues to grapple with fast-rising load. Logistics: Spearpoint Logistics will support BNSF’s Barstow International Gateway with warehousing and distribution services. Agriculture & Trade: USDA plans to reopen a New Mexico livestock port after New World screwworm disruptions, noting active cases in Texas. Workforce & Education: A Voya grant backs a Pharr teacher’s hands-on engineering pond-and-bridge project, and a scholarship supports a UTRGV senior preparing to teach. Public Health: FDA classified a multi-state hand soap recall as Class II due to potential bacterial contamination.

Energy Markets: Oil held near $108–$109 as Saudi’s East-West pipeline shutdown and Red Sea export disruptions drained supply buffers, keeping Hormuz-linked risk front and center. LNG & Exports: Caturus says it will nearly double Commonwealth LNG’s export capacity with five new liquefaction trains, targeting higher output and new customer agreements. Power & Regulation: At G20 talks in Houston, the U.S. pushed energy dominance while the EPA moved to roll back power-plant carbon rules, a shift that could reshape how Texas and the wider grid plans for gas-fired generation. Data Centers & Water: Gov. Greg Abbott ordered Texas water regulators to penalize data centers that didn’t respond to a water-usage survey, escalating the fight over AI infrastructure’s local impacts. Semiconductors & AI Supply Chain: Samsung began prototype production of Tesla’s AI5 chips at its Texas foundry, signaling faster ramp plans as advanced-node demand stays tight. Space Industry: Abbott named a Texas leadership team to pitch the U.S. Space Academy, with Texas A&M professors tied to the effort. Retail & Construction: Walmart filed plans for a Royse City Supercenter renovation and expansion, adding space for pickup and delivery.

Energy & Logistics: OXEA, a Houston-based chemical maker, is switching to Uber Freight to run day-to-day transportation across the U.S., Canada, Mexico and Europe, aiming for a more unified global supply chain. Tech & Manufacturing: Tesla plans a $1.4M distribution center near Austin (538,720 sq. ft.), with construction starting Dec. 7 and a target completion in Dec. 2028. Space Policy: Gov. Abbott is forming a leadership team led by Rep. Greg Bonnen to pitch Texas for the permanent U.S. Space Academy, building on a new federal commission tied to NASA’s Johnson Space Center. Water & Data Centers: Abbott orders penalties for Texas data centers that don’t report water usage, keeping the water-demand fight in the spotlight. Finance & Housing: Bamboo Insurance (CVC-backed) filed for an IPO targeting about $700M, while Liberty Hill’s Walmart supercenter is moving toward an October start. Healthcare & Food: A Rio Grande food business center in El Paso is ending after federal funding changes, and Cornell freshman Misha Patel won a U.S. Foods hospitality scholarship.

Nuclear & Capital Delivery: PTAG joined the Texas Nuclear Alliance, pitching owner-side project integrator experience to help manage execution risk as Texas eyes next-gen nuclear builds. 6G & Telecom Infrastructure: Samsung and Verizon wrapped a major ISAC field trial in Texas, using AI-powered sensing over virtualized networks to detect crowd movement and density—an early step toward 6G-era applications. Food Supply Chain Finance: Sysco priced a common stock offering to help fund part of its pending Jetro Restaurant Depot acquisition. Energy Security & Oil Prices: At the G20 in Houston, U.S. Interior Secretary Doug Burgum touted a Venezuela oil deal, while renewed Houthi attacks on Saudi infrastructure pushed crude higher and deepened supply fears. Grid Rules for Critical Equipment: A new executive order targets foreign supply of bulk-power system equipment, adding compliance pressure for generators, transformers, inverters, and battery storage tied to data centers and AI. Data Centers Under Water Scrutiny: Gov. Abbott ordered penalties for data centers that don’t report water usage, as Texas grapples with demand growth. Texas Natural Gas Leadership: Texas remains the top U.S. natural gas producer by gross withdrawals, underscoring the state’s central role in national energy supply. Local Industry & Workforce: Greater Waco Chamber’s LEAD program was named a TFNB Charity Champion, pairing mentors with students and spotlighting local manufacturing, logistics, and other trades. Public Health Recall: Houston-based Centric Compounding recalled injectable products nationwide after elevated endotoxin levels were found in an ingredient. Construction & Mobility: TxDOT posted fresh Big 6 Construction closures and detours, with overnight lane impacts across key corridors.

Energy Policy Shake-Up: Reports say the Trump EPA is poised to scrap Biden-era carbon pollution limits for coal- and gas-fired power plants, a move expected to land during the G20 energy ministers’ meeting in Houston and likely trigger legal fights. Oil & Fuel Pressure: U.S. fuel demand is slipping as diesel and gasoline stay painfully high, while Middle East shipping risks and Saudi pipeline disruptions push Brent and WTI higher—raising costs for trucking, retailers, and consumers. Grid & Infrastructure: Texas-linked attention continues as utilities and regulators weigh major transmission upgrades and as Energy Transfer prepares to shift its primary listing from NYSE to the Texas Stock Exchange. AI, Tech, and Industry: Markets react to calls from AI leaders to slow model development, while Tesla’s Cybercab begins fleet operations in Austin and faces regulatory hurdles abroad. Texas Business & Services: LifeCare launches a new website to streamline home health and hospice access, and CapMetro extends Stadler support for Austin’s Red Line. Legal & Corporate: Elon Musk’s X Corp and xAI drop their antitrust lawsuit against Apple in a Texas case, while separate investor alerts target Primoris and Microvast.