AGP Executive Report

Semiconductor & AI Buildout: SpaceX and Tesla confirmed Terafab, a $16.8B chip megafactory in Grimes County, targeting 100M+ sq. ft. and 3,000+ jobs, with Intel slated to contribute and chips aimed at Tesla robots, Cybercabs, and SpaceX data centers. Power Infrastructure: Nvidia is reportedly in advanced talks to take about a 30% stake in Texas energy developer Lancium via a ~$1B investment, underscoring how AI compute is driving demand for grid-connected power. Grid & Data Center Policy: Texas’ pause on new data center grid connections is rippling through interconnection planning, with Oncor executives citing ERCOT’s Batch Zero process and uncertainty after Abbott’s audit order. Energy Markets: Oil prices rose on Strait of Hormuz transit uncertainty as Iran and Oman negotiate possible rules for shipping lanes. Transportation & Local Governance: NCTCOG’s executive board approved a settlement to end a Denton County transportation governance lawsuit, aiming to keep federal funding on track. Ag & Food Safety: Texas egg recall guidance highlights carton side-panel codes tied to a Salmonella outbreak reaching 17 states, while Waco accepted a $600K NexGard donation to fight New World screwworm risk. Manufacturing & Jobs: Bowtech will close its Eugene factory and relocate production to Houston, laying off 43 employees.

Semiconductors & Power Infrastructure: SpaceX and Tesla formally confirmed “Terafab,” a $16.8B AI chip manufacturing complex in Grimes County, targeting at least 3,000 jobs and a 100-million-square-foot first phase—while reporting also says the project will lean on natural gas power plus large battery arrays, not solar. Energy & Environment: Lummus Technology acquired part of Shell Catalysts & Technologies’ environmental catalysts IP and staff to expand emissions-reduction solutions for refining and petrochemicals. Renewables & Biofuels: Waste Energy updated shareholders on commissioning progress at its Midland campus, and XCF Global said its New Rise Renewables Reno renewable diesel restart is moving forward after upgrades. Industrial Growth & Local Business: Suntex Enterprises’ JA Development & Construction signed a definitive construction management deal with Airtopia Group. Texas Policy & Industry Tension: Texas Land Commissioner Sid Miller warned data centers could cost Republicans statewide elections, arguing Gov. Abbott is effectively stalling while projects gain leverage. Consumer & Legal Watch: Buc-ee’s sued a small Ohio convenience store over a beaver mascot trademark dispute.

Semiconductor Boom: Gov. Greg Abbott announced SpaceX’s $16.8B “Terafab” chip factory in Grimes County, a 100M sq.-ft. vertically integrated site targeting 3,000 jobs, with state incentives tied to commitments on electric bills and water use. Local Industry Watch: At Grimes County Commissioners Court, SpaceX reps said JETI agreements are signed and outlined a long-term tax abatement structure. Energy & Shipping: Oil jumped as Iran-Oman Hormuz talks and reports of tanker attacks kept supply risk front and center, while US Middle East crude imports are set to rise. Texas Infrastructure & Growth: Friendswood moved forward on a plan to extend Friendswood Parkway to ease congestion and support hurricane evacuation routes. Public Works Dispute: Houston residents near Industrial Way are still dealing with sinkholes and arguing over whether the city or Union Pacific is responsible for repairs. Manufacturing Supply Chain: GE Appliances will expand US semiconductor sourcing via a Texas Instruments partnership for connected laundry appliances starting in 2027. Agriculture Health Alert: Screwworm cases in Texas continue climbing, prompting movement restrictions for livestock. Workforce & Policy: A new look at H-2A/H-2B seasonal visa reliance highlights how labor shortages ripple across Texas-relevant industries like agriculture, landscaping, hospitality, and seafood processing.

Semiconductors & Jobs: SpaceX says it will invest $16.8B to build Terafab, an advanced AI chip factory in Grimes County, with an initial push to create 3,000 jobs. Energy & Trade: Oil prices slid as Iran-Oman Hormuz talks showed progress, while investors watched for signs of a broader U.S.-Iran deal. Power Grid Pressure: Texas lawmakers and officials keep clashing with data-center growth as heat and demand strain reliability, with new scrutiny on interconnections and grid capacity. Hemp Policy: Senate stopgap funding talks reportedly hinge on delaying a planned hemp THC prohibition, giving industry another month to push for regulation instead of a ban. Agriculture & Land: Texas farm and ranch ownership is rising, but attorneys warn buyers about hidden legal pitfalls tied to mineral rights, water access, fencing rules, and messy title history. Business & Finance: Utility Global named Robert Lane CFO as it moves into commercialization, while Waco-based C-Suite2Go launched BusinessWiser™ aimed at helping product businesses strengthen cash flow. Food Safety: CDC and FDA reported 345 illnesses in a multistate Salmonella Javiana outbreak linked to jalapeños from Mexico, with two cases showing antibiotic resistance.

Data Centers & Power Grid: Gov. Greg Abbott ordered Texas to pause new data center approvals pending an audit of ERCOT interconnection queue impacts, warning demand could overwhelm the grid; the move is already drawing pushback from industry and local officials. Energy Markets: Oil prices swung after reports of a Houthi attack on a Saudi tanker renewed Red Sea shipping worries, while U.S. crude inventories rose modestly as refinery runs eased and imports climbed. Local Industry & Manufacturing: Grimes County approved a tax abatement for Evapco’s planned Navasota cooling and refrigeration facility, aiming to bring 200+ jobs; residents also delivered a petition demanding stronger protections tied to SpaceX’s Terafab proposal. Texas Hemp/THC Legal Fight: Texas’ new ban on many hemp-derived THC products is facing a federal court challenge from hemp businesses arguing it conflicts with the 2018 Farm Bill. Ag & Community Resilience: Texas A&M AgriLife Extension will host a free diabetes emergency preparedness workshop in San Patricio County. Business & Consumer: Buc-ee’s and Texas A&M launched co-branded merchandise, with more products planned for the A&M 150th anniversary.

Data Centers & Grid Policy: Gov. Greg Abbott ordered a pause on new Texas data-center connections to the power grid, directing ERCOT and regulators to audit projects in the interconnection queue before allowing any to proceed—after requests reportedly hit about 474 gigawatts, with data centers driving most of the load. Energy Storage Manufacturing: Base Power says it raised $1B and is starting residential battery manufacturing in Austin, rolling out its 39.2-kWh Base Core system for Texas and Illinois. Nuclear for Heavy Load Customers: Entergy, Holtec, and Hyundai Engineering & Construction will evaluate potential deployment of Holtec’s SMR-300 for large-load customers across Entergy’s footprint. AI Power Demand Debate: A new report highlights the “builder activation gap” in AI—most leaders use AI, but few build reusable tools—while Texas continues to wrestle with the power and water realities of AI buildout. Crypto Payments Expansion: NectarPay will deploy 11,000 handheld crypto payment terminals across Texas after investing $1.2M. Local Business & Growth: Central Texas Angel Network ranked #8 in the U.S. for angel activity, with member investments rising to more than $8M in 2025.

Data Centers & Power Grid: Gov. Greg Abbott ordered Texas regulators to audit and potentially deny new data center grid connections as AI-driven demand surges, requiring developers to disclose electricity and water use, cooling plans, incentives, ownership, and community impact; ERCOT says the directive effectively pauses projects while the review runs. Local Impact & Utilities: Residents in Lakewood Pines/Atascocita say power problems are damaging appliances and want accountability from CenterPoint as the state debates whether data center growth is stressing the grid. Energy Markets: Oil prices swung on Strait of Hormuz shipping risk and Iran-related headlines, with U.S. and global stocks rising alongside earnings and crude volatility. Telecom & Infrastructure: AT&T is back in court seeking to end an investor suit tied to lead-covered cable removals, while copper thefts continue to disrupt communications. Hemp & Consumer Rules: Texas’ tightening of hemp-derived THC products is creating confusion for retailers and veterans, with legal challenges underway over what’s still legal and what could trigger criminal risk. Healthcare & Research: UT MD Anderson was named the nation’s top cancer center for a 12th straight year, and an NSF grant will bring ACM MobiCom to Austin with expanded student travel support.

AI & Cybersecurity: NuSummit joined CREST’s AI Charter as a founding signatory, pledging governance and human oversight as AI gets embedded into cybersecurity services. Energy Storage Boom: A new industry record shows U.S. grid batteries added 9.7 GWh in Q1 2026, with Texas leading utility-scale deployments as storage keeps expanding fast. Texas Grid & Data Centers: Gov. Abbott paused new Texas data center projects pending energy and water audits, adding pressure to grid planning and local approvals. EV Charging Expansion: Pilot, GM, and EVgo’s fast-charging network topped 300 locations and 1,300 stalls across 40 states, pushing long-distance EV travel. Agriculture Protection: USDA rolled out a $35M feral swine eradication program to help landowners cut wild hog damage and disease risk. Healthcare Dealmaking: KKR agreed to buy Plano-based medtech manufacturer Integer for about $5.7B, underscoring continued private equity appetite in Texas manufacturing. Rural Broadband: CanAm Enterprises won USCIS approval for a 360 Broadband rural EB-5 fiber project in Fannin County, Texas.

Energy & Infrastructure: Gov. Greg Abbott ordered a pause on new Texas data center grid connections, directing PUCT and ERCOT to complete audits of each project’s power and water use before any approval—amid ERCOT’s review of requests totaling about 474 GW, with data centers driving roughly 90% of the load. Legal & Policy: A federal lawsuit challenges Texas’ new hemp-derived THC Schedule I rule, arguing the state’s ban violates federal and state law; meanwhile, Texas retailers say sales are already collapsing as enforcement ramps up. Construction & Border Water: Border wall work in drought-hit New Mexico was ordered to stop drilling new wells after ranchers warned groundwater pumping for concrete could threaten livestock. Defense & Manufacturing: Drone production is moving forward at Red River Army Depot, with an Altech-led effort and major contracts aimed at expanding unmanned aircraft systems work through 2027. Business Moves: Irving’s Everon was ranked No. 3 among U.S. security systems integrators, and US Oral Surgery Management named Jennifer Ellis CFO. Houston Sports/Local Economy: The Astros finalized a trade for center fielder Daulton Varsho from Toronto, adding Gold Glove defense and power as the team pushes for the AL West lead.

Data Center Power Crunch: A Houston summit is zeroing in on the “gas to grid” bottleneck behind AI-driven electricity demand, with developers and utilities expected to compare pipeline, storage, generation, and interconnection constraints. Energy & Infrastructure Buildout: Waste Energy says its Midland waste-conversion campus is in final commissioning, targeting mid-September for the next step toward commercial operations. Cross-Border Logistics: Circle Logistics adds a Mexico Freight Operations Manager to expand U.S.-Mexico port-to-corridor execution, with a focus on major Texas crossings. Texas Business Expansion: Apollo Global Management is opening an Austin hub for innovation and emerging tech, signaling more financial-services growth tied to the state’s talent base. Manufacturing & Power Tech: Hyliion demonstrated multiple KARNO power modules coordinating as one system, aiming to scale modular generation for variable-load sites. Water & Sustainability: Zurn Elkay Water Solutions earned TIME’s “America’s Best Companies” recognition for performance and sustainability transparency. Agriculture: Texas A&M AgriLife will host the East Texas Forage Conference Aug. 14 in Hallsville, covering forage production, livestock management, and new pest threats.

Texas Economy: U.S. News & World Report ranks Texas No. 1 for economic performance, pointing to the state’s oil legacy, tech growth, and a still-diversifying industrial base. AI Data Centers: AZIO AI signed an AT&T master services agreement for enterprise fiber to support a 500MW Texas AI data campus, while new reporting highlights how Bexar County’s data-center boom is accelerating—along with questions about power and infrastructure. Energy Markets: OPEC+ approved a September rollback of “voluntary” oil production cuts, a move that could keep pressure on fuel prices as Hormuz-linked risks continue to rattle shipping and supply. Regulation & Hemp/THC: Texas retailers must remove many synthetic hemp-derived THC products after the state’s Delta-8 and related restrictions took effect, reshaping what’s legal for shops and consumers. Construction & Power: Utilities are seeking major rate hikes nationwide, and the debate is shifting toward who pays for grid upgrades as data-center demand grows. Aerospace/Defense: Boeing is advancing a B-1B pylon design aimed at future standoff and hypersonic weapon integration, keeping the Texas-based bomber modernization track moving. Local Governance: Bryan’s former mayor Lloyd Joyce has died; visitation and services are set for early August.

Data Centers vs. Texas Landowners: Lubbock residents are pushing for an 18-month moratorium after council votes to annex and rezone land that could feed future power-hungry development, while Central Texas landowners keep fighting transmission-line projects and eminent domain. Energy & Infrastructure Jobs: Nvidia CEO Jensen Huang says the AI buildout will unlock six-figure trade jobs—plumbers, electricians, construction crews—because chip and data-center factories need hands-on labor. Defense Manufacturing in Texas: A small Cedar Park firm, Aeon, is showing congressional staff its fuze production line tied to the Pentagon’s drone push, underscoring how “unglamorous” components drive scale. Geothermal Breakthrough: A Texas company says it connected two deep wells through 629°F rock in Oregon, aiming to make superhot geothermal a reliable power source. Policy & Privacy Tension: As Congress weighs FISA Section 702 renewal, privacy advocates warn AI could expand surveillance impacts on everyday Americans. Retail Security & Social Media: Allstate says burglars increasingly use Instagram and vacation posts to pick targets, with August the peak month. Texas Hemp Crackdown: Texas bans most delta-8 THC products, raising questions about fairness for businesses that followed earlier rules.

Hydrogen & ammonia in Texas: Woodside says its first green hydrogen project is set to start up in the second half of 2026, while its Beaumont, Texas “lower-carbon” ammonia project keeps producing grey ammonia this year until key units and carbon capture infrastructure come online. Energy prices & shipping risk: Exxon and Chevron warn diesel and other refined fuel supplies will stay tight into the second half as the Iran war disrupts flows, with Strait of Hormuz shipping a major pressure point. Data centers vs. Texas land and power: Texas Agriculture Commissioner Sid Miller says AI data center growth is straining farmland, water, and local power grids, echoing broader rural and suburban pushback. AI regulation momentum: A U.S. debate on AI oversight is accelerating as cyber incidents and politics push labs toward more trust-building rules. Consumer protection in Texas: AG Ken Paxton opened an investigation into Lone Star Pups over claims about puppy origins and veterinary testing. Agriculture biosecurity: USDA confirms new world screwworm cases in parts of Texas, triggering movement controls and expanded surveillance. Workforce & construction demand: Google-backed training efforts highlight how AI-driven data center buildouts are boosting demand for skilled construction trades.

Power & Grid Pressure: ERCOT hit record Texas electricity demand twice in two days, and the grid debate is getting louder as AI data centers pull record loads and even crypto curtailment becomes part of the balancing act. Energy Markets & Security: Iran’s threats to target U.S. and Israeli energy infrastructure keep oil and shipping risk elevated, while wind PPA prices jump as permitting bottlenecks squeeze new supply. Data Centers vs. Texas Land & Water: Texas energy agencies are asking for more authority over the data-center boom, and the state’s THC crackdown continues alongside renewed fights over land clearing near Big Bend. Construction & Transit: Texas approved $154M for public transit statewide, and the week’s infrastructure push pairs with ongoing construction and lane-closure work. Workforce & Training: Nvidia’s Jensen Huang argues the next wave of six-figure jobs will come from hands-on trades tied to AI and data-center buildouts. Environment & Health: A federal judge ordered stricter PM2.5 enforcement for the Houston region, raising pressure on industrial and vehicle pollution controls. Oil & Gas Business: Chevron reported strong upstream growth and profits as the Iran conflict lifts prices. Cybersecurity: SM Energy disclosed a breach exposing sensitive personal data, including Social Security numbers.

Texas Stock Exchange Launch: Gov. Abbott says TXSE hit full production trading July 31, with all national symbols now available after a phased rollout. Space & Defense: Abbott met Air Force leadership and announced a 10-year, up to $300M partnership agreement tied to tech transfer and workforce growth via the Texas Space Commission. Power Grid Costs: A new debate is heating up over who pays for transmission upgrades as Texas data centers surge—lawmakers and regulators are still sorting out protections for homes and small businesses. Energy Markets: Oil prices jumped as traders reassessed shipping risk through the Strait of Hormuz amid Iran-U.S. tensions. Grid Reliability: DOE issued an emergency order for 17 states, including Texas, to reduce blackout risk during extreme heat. THC Crackdown: Texas began enforcing bans on many hemp-derived THC products (including delta-8/delta-10), while delta-9 remains legal under limits. Border Land Fight: Texas Land Commissioner Buckingham sent a cease-and-desist to CBP and a contractor over alleged unauthorized clearing of state land near the Rio Grande. Houston Incident: A fire on the roof of Houston Methodist’s Centennial Tower was extinguished; officials say it was tied to equipment and didn’t spread to lower floors. Food Safety: Texas and New Mexico consumers are adjusting grocery lists after egg-related salmonella recalls, with some farms offering alternatives.

Energy & Markets: Exxon and Chevron posted major spring profit gains as U.S.-Iran fighting disrupted shipments through the Strait of Hormuz, pushing Brent from about $70 to above $100 (and briefly $126) and lifting refining margins. AI Data Centers & Power: Xcel Energy says it’s positioning wind, solar, and storage to serve data-center load—reporting 1GW operating/under construction, 1GW under signed agreements, and targeting more capacity by 2027—while AZIO AI signed an AT&T master services agreement for enterprise fiber to support its initial 500MW Texas AI campus. Workforce & Training: UT Dallas is partnering with the FAA to test VR/AR tools for aerospace workforce training, and the Rio-South Texas Education & Community Development Foundation awarded $2.2M (with potential $4.4M matching) for construction, HVAC, electrical, STEM, and other job pathways. Agriculture: USDA’s July cattle inventory shows 94.2M head as of July 1, with mixed herd signals, while lawmakers push H-2A administrative fixes and USDA plans a phased reopening of the Arizona cattle border Aug. 24 tied to screwworm control. Texas Policy & Compliance: Texas Land Commissioner Buckingham issued a cease-and-desist after a federal contractor allegedly cleared state land without permission. Healthcare & Biotech: St. Raphael Health acquired the former First Baptist Medical Center in Dallas, and Moleculin’s MIRACLE trial reported preliminary blinded CR of 24% and CRc of 37% in relapsed/refractory AML.