AGP Executive Report

Industrial Chemicals: Covestro closed its acquisition of two former Vencorex HDI derivatives plants—one in Rayong, Thailand and one in Freeport, Texas—expanding capacity for polyurethane coatings, adhesives and sealants across Asia-Pacific and North America. AI & Power Policy: Gov. Greg Abbott is pushing new limits on Texas data centers, calling for bans in rural neighborhoods and urging operators to bring their own power and water or stay out. Energy Grid & Local Impact: Texas and regional utilities face mounting scrutiny as communities question major transmission and grid upgrades, including a southern Minnesota fight over a proposed 765-kV line. Agriculture Biosecurity: The U.S. opened a $50 million “screwworm fly factory” in Mexico to mass-breed sterile flies to suppress the New World screwworm spreading into Texas. Manufacturing & Workforce: Texas A&M highlighted a new NVIDIA supercomputing system (VISION) to speed research and training, while Texas State Technical College showcased construction training tied to local industry needs. Business Legal Watch: Texas Attorney General investigations into StubHub continue after World Cup ticket-cancellation complaints.

Data Centers vs. Rural Texas: Gov. Greg Abbott renewed his push to bar AI data centers from rural neighborhoods, arguing they should “bring their own” power and water and lose tax breaks—while regulators face mounting pressure as heat and grid strain grow. Power & Water Planning: Amarillo approved a second groundwater pipeline plan to reduce reliance on an aging, single-point Lake Meredith supply as demand rises across the Panhandle. Energy Markets: Oil prices were steady to slightly down as U.S.-Iran peace efforts kept Strait of Hormuz reopening hopes alive, easing the war premium. Texas Agriculture Biosecurity: Federal and state officials confirmed 31 New World screwworm infestations, including 30 in Texas, prompting renewed livestock wound-control warnings. Space & Manufacturing: Firefly Aerospace won a $144M NASA lunar lander contract from Cedar Park, while Siemens’ Plano software was selected by ORECA for advanced motorsport simulation. Local Culture: Fort Worth opened its African American Museum and Cultural Center, adding another anchor for North Texas heritage tourism.

Texas Water & Industry: McGregor is weighing new industrial growth as a report says SpaceX’s water use in the Waco area may exceed permitted groundwater pumping, raising fines and water-rights questions for the McGregor Industrial Park. Energy Infrastructure: Texas Gas Transmission’s Borealis Project would run a 42-inch, high-pressure natural gas pipeline across Ohio, Indiana and Kentucky, but Kentucky landowners are pushing back over safety and property-rights transparency. Capital Markets: The Texas Stock Exchange (Dallas) begins phased trading Monday, aiming to prove it can be a real alternative to Wall Street platforms. Semiconductors & Supply Chains: Taiwan will open a representative office in Phoenix to deepen U.S. tech and supply-chain ties as TSMC expands and more Taiwanese suppliers move in. AI Power Debate: Rural Texans are increasingly worried AI data centers will drive up electricity costs and strain local water and land, fueling calls for oversight. Texas Agriculture Biosecurity: New World screwworm detections in Texas and New Mexico are prompting stricter livestock import rules elsewhere, including New York. Tech/Robotics Consumer Launch: OlloBot is bringing plush IP blind boxes and an offline preview of its companion robot to a Houston pop-up this July.

Screwworm Alert: USDA says the New World screwworm has spread in Texas, with cases now in multiple domestic animals and new quarantines expanding across counties—raising stakes for ranchers and pet owners. Energy Security: A watchdog warns the U.S. Strategic Petroleum Reserve may struggle in future crises as aging infrastructure and low inventories cut effective withdrawal and refill capacity. Data Centers & Power: Texas continues to debate data-center growth as heat and grid strain push regulators and utilities to demand backup power planning and more transparency on water use. Manufacturing Workforce: Caterpillar announced a $5 million Texas investment aimed at strengthening the manufacturing talent pipeline through training partnerships. Aviation Safety: The FAA is investigating a United Express incident after a passenger tried to open a cabin door at about 400 feet, as unruly passenger reports top 830 nationwide this year. Local Governance & Infrastructure: Kerr County flood coverage revisits how fast-rising Guadalupe River water overwhelmed camps and homes, and what’s changed since the 2025 disaster.

Data Centers vs. Rural Texas: Gov. Greg Abbott renewed calls to bar AI data centers from rural neighborhoods, arguing they should bring their own power and water and avoid shifting costs to residents. Grid Reliability in the Real World: SWEPCO launched a Marshall grid enhancement project backed by a Texas PUC grant, aiming to replace aging lines and harden infrastructure against severe weather for nearly 193,000 customers. Energy Prices Watch: Oil slid for a third straight day as U.S.-Iran talks eased Strait of Hormuz supply fears, with Brent and West Texas Intermediate both down. Helium Crunch Hits Texas: Southwest Gases says helium allocations were cut nationwide, leaving Texas labs and small businesses on waitlists and facing steep spot price jumps. Texas Industry Finance: Ring Energy announced $66M debt paydown and a reaffirmed $585M borrowing base after liquidity improved. M&A & Deal Activity: The M&A Source honored Transworld’s Austin Zhao and Bobbi Coffey with an Executive Club Award for major 2025 transactions. Local Business Tech: Bay Leaf Digital earned a HubSpot Software Industry Specialist badge, signaling deeper software-focused marketing expertise.

Workforce & Training: Gov. Abbott and the Texas Workforce Commission announced $206,178 in Skills Development Fund grants for Alamo Colleges District, targeting 158 workers for welding, robotics, and advanced manufacturing roles. Energy & Industry Policy: Abbott again pushed to block AI data centers in rural Texas neighborhoods, saying they should bring their own power and water and face limits on tax breaks. Data Center Accountability: Texas regulators are trying a second time to collect water-and-electricity use data from data centers after a weak response rate, as grid and water concerns grow. Trade & Supply Chains: The U.S. decided not to renew USMCA in its current form, setting up annual reviews until the deal expires in 2036—raising stakes for Texas exporters and manufacturers. Oil & Shipping: Oil prices slid as optimism around U.S.-Iran talks eased supply worries, while technical talks in Qatar focused on Strait of Hormuz shipping. Local Business: H-E-B is planning store upgrades under its Fresh Initiative, including a Fort Worth-area remodel. Agriculture Risk: New World screwworm remains a Texas concern, with USDA reporting nearly all cases in Texas and officials urging continued livestock vigilance.

Workforce & Skills: Texas State Technical College students brought home SkillsUSA medals, including a silver in TeamWorks and national wins in telecommunications cabling—another sign the state’s career pipeline is getting sharper. Semiconductor Supply Chain: Gov. Abbott extended a $3.9M Texas Semiconductor Innovation Fund grant to Schunk Xycarb in Georgetown, backing SiC-related components and adding 25 jobs. Water & Local Governance: A McGregor resident is pushing a mayor recall over water management and transparency, while East Texas counties move to form a regional groundwater district to curb high-capacity pumping. Agriculture Biosecurity: New World screwworm keeps spreading, with Texas quarantines expanding and new cases reported as ranchers and pet owners brace for more. Restaurant Compliance: A new state law requires restaurants to disclose automatic tips and mandatory service or operations charges before diners order. Energy & Grid Resilience: SWEPCO is advancing Texas Energy Fund-supported grid reliability work in Marshall as utilities plan for tougher wildfire and storm conditions. Defense Manufacturing: Reuters reports defense startups are borrowing production methods from auto and fracking supply chains to speed missile output.

Antitrust & Food Supply: DOJ and 17 state AGs sued major egg producers over alleged price-fixing tied to Urner Barry egg price quotes, and a related settlement secured tens of millions of eggs for food banks nationwide, including millions for Wisconsin. Ag & Biosecurity: Arizona received a $3.74M USDA grant to boost early warning and response to the New World screwworm threat, with Texas cases continuing to climb and ranchers bracing for impacts. Energy & Grid: SWEPCO began grid upgrades in Marshall with Texas Energy Fund support, while Texas storms are highlighted as a reminder that backup power can be a life-or-death issue. Construction & Permitting: Tomball crews halted work after workers found possible historic cemetery headstones, triggering a preservation review. Business & Capital Markets: Austin-based Nutrabolt picked banks for a potential IPO, and Diamondback/Viper scheduled earnings calls for early August. Workforce & Agriculture Policy: Edge Dairy Farmer Cooperative backed the Securing Agriculture’s Workforce Act to expand H-2A access for dairy farms. Tech & Real Estate: Houston’s East End district is exploring reopening an abandoned underpass for pedestrian and bike connectivity.

Solar Supply Chain: Waaree Solar Americas says its Brookshire, Texas plant will ship 236.22 MW of N-type modules for a Kentucky utility-scale project, underscoring continued U.S. demand for domestically made solar gear. EHS & Compliance Tech: Houston-based EHS Insight launched an MCP integration so safety and compliance teams can ask questions in plain language and get answers from live, permissioned EHS data. Cyber & Small Business Risk: Charter Capital warns AI-powered online theft is rising fast, with faster attacks and more malware-free threats hitting small and mid-sized firms. Agriculture Biosecurity: Texas screwworm cases are up to 26, with quarantines and sterile-fly releases ramping up to protect the state’s $41B cattle industry. Local Governance vs Data Centers: San Marcos became the first Texas city to ban data centers within city limits, citing water and energy strain concerns. Industrial Growth: Field Fastener announced a near-$3M Tyler expansion, adding 10 jobs, as East Texas manufacturing investment continues.

Data Centers vs. Local Power: Victoria County residents and officials sparred at Commissioners Court over a proposed $3B data center phase, weighing tax-abatement hopes against grid, land-use, and water concerns. Workplace Safety: OSHA proposed $3.5M in fines after a sulfuric acid spill in the Houston Ship Channel area, citing dangerous response and worker protection failures. Healthcare Fraud Settlement: Texas announced nearly $34M from AstraZeneca to resolve Medicaid kickback allegations tied to provider “nursing services” and prescription influence. AI + Construction Reality Check: Applied Digital CEO warned AI data-center builds could face “pretty significant delays” through 2026-27 as labor constraints bite. Energy Reliability Funding: Gov. Abbott announced nearly $30M in TxEF grants for Rita Blanca Electric Cooperative upgrades in the Panhandle. Tech for Travel: Arrow Analytics says it’s testing AI camera systems to count carry-ons and improve boarding efficiency. Local Infrastructure: Corpus Christi reopened Timbergate Drive after a $4.7M Bond 2022 rebuild. Business & Talent: SMU’s SW Graduate School of Banking wrapped up with 82 graduates, including Texas Farm Credit leadership. Sports Economy Note: World Cup hosting is boosting U.S. leisure and hospitality jobs and visitor spending, with a public-diplomacy lift.

Coastal Construction & Flood Compliance: Austin’s Seven Custom Homes says Port Aransas builds on Mustang Island demand higher engineering standards, including FEMA Zone AE/VE elevation rules and velocity-zone piling design, plus local freeboard and windstorm requirements. Geopolitics & Energy Markets: Reports that the U.S. and Iran will pause hostilities and let commercial vessels transit the Strait of Hormuz helped lift oil and steadied stocks, though traders warn the “all-clear” isn’t permanent. Defense Industrial Base: Lockheed Martin (Dallas) won a $35.3B THAAD interceptor production deal, underscoring Texas’s role in missile defense manufacturing. M&A in Texas Logistics: FTAI Infrastructure completed its acquisition of Tidewater Logistics, adding barge and rail transloading capacity in Ohio, West Virginia, and Texas. AI, Power, and Texas Data Centers: New reporting highlights how AI-driven demand is colliding with grid constraints and community pushback, while Texas data-center water-use transparency remains a flashpoint. Construction Safety: A worker died after being struck by a work vehicle in a Gulf Freeway construction zone near Dixie Farm Road.

Energy & Shipping: Oil prices ticked up after renewed US-Iran strikes raised fears for the Strait of Hormuz, slowing energy shipping and rattling markets. Grid & Power Reliability: Texas data-center growth is colliding with public concerns over water use and power demand, with regulators and local officials pushing for more transparency. Agriculture Biosecurity: The New World screwworm outbreak keeps expanding in Texas; USDA is ramping sterile fly production in Mexico to help stop spread back into the US and protect cattle and wildlife. Ports & Logistics: Brownsville’s ship channel is deeper after a completed improvement project, boosting deep-draft access and setting up more landside investment. Manufacturing & Tech: Constellation Energy and Walmart announced a long-term nuclear power purchase agreement, signaling continued momentum for large-scale clean power demand. Public Safety & Consumer Impact: A recall was issued for certain Amana through-the-wall units due to fire and burn risks tied to electrical noncompliance. Trade & Security: CBP seized more than $70M in meth across two major border crossings, underscoring ongoing cross-border trafficking pressure.

Biotech Breakthrough: Texas A&M researchers unveiled a laser-based method (TRIP) that can “listen” to proteins by measuring tiny molecular forces, aiming to speed earlier drug-candidate screening for diseases like cancer and Alzheimer’s. Animal Health & Agriculture: Florida moved to emergency screwworm rules after Texas detections, tightening warm-blooded animal movement, inspections, and quarantines at the border. Texas Energy & Industry: A Dallas Fed survey found oil-and-gas activity in Texas and nearby states jumped to the strongest pace since 2022, with executives citing oil-price swings tied to the Iran situation. Data Centers & Water: Texas lawmakers pressed developers for water and power details, but fewer than one-third of contacted companies responded—leaving “bad data” for policy decisions as the data-center pipeline grows. Aerospace/Logistics: Qatar Airways clarified a viral low-pass video in Central Texas, saying the aircraft was leased and not operated by its crew during pre-delivery testing. Community & Events: Corpus Christi wrapped up a major Texas Democratic convention as the party looks toward 2026, while East Texas is gearing up for a Longview benefit concert featuring ’90s country hit-makers.

Power Reliability Watch: Houston again topped the U.S. for outages in May, with some neighborhoods hitting nearly 9x the national interruption rate, raising fresh questions about grid hardening and heat resilience. Antitrust Procedure: FTC Chair Andrew Ferguson urged faster antitrust timelines so dominant firms don’t gain years of advantage while cases drag. Ag Biosecurity: Texas expanded New World screwworm quarantines after new detections, while Missouri updated livestock movement rules for animals entering from infested zones. Energy & Industry: XCF Global advanced commissioning at its New Rise Renewables Reno site toward initial renewable fuel production. Texas Tech & Legal AI: Scale Law Firm AI named Tima Mousavi to lead practical AI training for lawyers across the U.S. and Canada. Aviation Safety: Qatar Airways clarified a viral low-pass video over a Texas airfield involved a non-Qatar pre-delivery aircraft. Logistics & Infrastructure: Verizon said a major wireless outage was resolved and offered affected customers a $20 credit. Renewables & Materials: Mexico and the U.S. inaugurated a sterile fly plant in Chiapas to ramp screwworm suppression across borders.

Livestock Biosecurity: Texas officials are on alert after the New World screwworm was confirmed in Zavala County, with agencies urging ranchers and pet owners to start checking animals early and report cases fast as the pest spreads beyond the initial zone. Statewide Animal Health Response: A Texas cattle-focused roundup in Hallettsville drew more than 1,200 producers as federal and state leaders laid out containment steps while confirmed cases climbed to 20 across multiple counties. Agriculture & Trade Risk: The screwworm return is being framed as a major threat to the $113B U.S. cattle industry, with officials racing to eradicate the flesh-eating parasite before it takes hold again. Energy & Markets: Oil prices swung sharply as Strait of Hormuz shipping picked up, with Brent down more than 4% and WTI near $69, while Wall Street digested tech jitters and stronger U.S. jobs data. Texas Business & Industry: Dell shareholders approved moving the company’s legal home to Texas, adding to the state’s growing pull for corporate operations. Aviation Connectivity: Southwest began rolling out Starlink-equipped aircraft for faster inflight WiFi, signaling more tech upgrades across Texas-linked travel.

Data Centers & Water/Power: Texas lawmakers grilled data-center operators over water-use reporting and grid strain, with only about 17% submitting required water surveys, while researchers warn bigger facilities also raise fire risk. AI Power Deal: Microsoft and Chevron signed a 20-year power purchase for a 2.67-GW West Texas gas plant to feed Microsoft’s AI buildout, aiming for first power in 2028. Local Incentives for Industry: Cedar Park approved a $13.8M incentive package for Texas Materials’ HQ move, and Bryan OK’d a tax abatement for a data center on the RELLIS campus. Energy Markets: Oil slid as more tankers moved through the Strait of Hormuz, easing supply fears. Agriculture Watch: New World screwworm cases climbed to 25 nationwide, with Texas adding multiple detections and expanding quarantine zones. Workforce/Tech Growth: BlueForge Alliance is scouting Texas sites for shipbuilding rejuvenation, while Cirrus opened a Duluth talent center to expand aerospace hiring and training.