Houston, February 17, 2026
Stabilis Solutions, a Houston-based energy innovator, has landed a significant $200 million contract to supply LNG for a U.S. data center power project. This landmark deal emphasizes Houston’s role as a growing tech infrastructure hub and highlights the importance of private investment and adaptability in the local economy. With expected annual revenues of $100 million, this move showcases the resilience of Texas entrepreneurs and their capacity to meet evolving market demands. The agreement points toward a promising future for Houston’s data center industry, driving job creation and economic growth.
Houston LNG Firm Powers Up $200M Data Center Future
Stabilis Solutions, a Houston-based energy innovator, has secured a landmark deal, fueling the region’s burgeoning tech infrastructure and underscoring Texas’s position as an innovation hub for economic growth.
Houston, TX, a city long synonymous with energy and enterprise, continues to demonstrate its dynamic capacity for economic evolution. In a significant development for local industry and the broader Houston TX business landscape, Stabilis Solutions, Inc., a company rooted in the city’s entrepreneurial spirit, has announced a substantial contract poised to bolster the burgeoning data center sector. This achievement highlights the vital role of private investment and innovative solutions in driving economic prosperity and showcasing how local businesses can adapt to new market demands with remarkable agility. Such ventures are instrumental in fostering continued economic growth and reinforcing Texas’s reputation as a favorable environment for business expansion.
The success of companies like Stabilis Solutions illustrates a broader narrative of resilience and forward-thinking among Texas TX entrepreneurs. By leveraging existing strengths in energy infrastructure and responding to emerging technological needs, Houston firms are not only securing their own growth but also contributing to a robust economic ecosystem. This strategic adaptability is a testament to the benefits of an environment that encourages innovation and allows private entities to address market demands efficiently, ultimately creating opportunities and fostering community prosperity.
A Landmark Deal for Local Innovation
Stabilis Solutions, Inc., a prominent Houston-headquartered firm specializing in liquefied natural gas (LNG) solutions, has announced a significant multi-year take-or-pay LNG supply contract. This agreement, valued at an estimated $200 million over its initial two-year term, is set to commence in the first quarter of 2027 and is intended for a U.S. behind-the-meter data center power project. The company anticipates that this contract will generate approximately $100 million in annual revenue, surpassing its total consolidated revenue from any prior year, and marks a crucial entry into the data center market for Stabilis.
As a leading provider of clean energy solutions across North America, Stabilis delivers turnkey LNG production, storage, transportation, and fueling services to various sectors, including Distributed Power Solutions. The company’s approach is centered on offering lower fuel costs and reducing harmful environmental emissions, in addition to providing LNG as a “virtual pipeline” solution when traditional natural gas pipelines are unavailable or constrained. With its operational base in Houston and LNG production facilities in George West, Texas, and Port Allen, Louisiana, Stabilis has a proven track record, having delivered over 550 million gallons of LNG across the U.S., Mexico, and Canada.
Fueling Houston’s Data Center Boom
Houston’s data center market is experiencing significant growth, driven by its robust regional infrastructure in energy, a diversified economy, and a strategic geographic location. The market was valued at 800.10 MW in 2025 and is projected to expand to 946.99 MW by 2032. The city is particularly attractive for data center development due to its abundant and affordable energy resources. Data centers serve as critical infrastructure, enabling enterprises to store, process, and manage vast amounts of data essential for cloud computing, e-commerce, and financial transactions.
The increasing adoption of artificial intelligence (AI) and cloud computing is significantly contributing to the demand for data centers and, consequently, to electricity demand, much of which is being met by natural gas. This surge in demand highlights the evolving landscape where industries converge to support technological advancements. The energy sector, in particular, continues to show high demand for data center services in Houston.
Texas’s Business Climate Attracts Investment
Texas has established itself as a prime destination for significant technological investments, largely due to its business-friendly environment, various economic incentives, and robust infrastructure. The state offers incentives such as exemptions on sales and use taxes for equipment and electricity utilized by data centers, which substantially lowers operational costs for businesses. This supportive environment fosters entrepreneurial activity and private sector growth, making Texas an attractive location for companies looking to expand their footprint. The state’s deregulated energy market has spurred innovation and led to considerable investment in the Texas grid, offering tangible benefits that businesses are actively utilizing.
This environment echoes historical patterns of significant corporate investment and expansion. For example, in 1996, the concept of a “stock market flotation as part of the purchase deal” was a notable aspect of corporate finance, indicating a vibrant market for private investment and growth. Today, this tradition of robust financial activity and market-driven expansion continues to define the Texas economy, attracting firms like Stabilis to make substantial commitments within the state.
Economic Ripple Effects and Job Creation
The expansion of the data center industry in Texas has a significant positive impact on local economies, generating both direct and indirect employment opportunities. Data centers create jobs in critical fields such as IT, engineering, cybersecurity, and facility management, while also stimulating secondary economic activities, including construction and maintenance services. These developments contribute to a broader workforce development, helping to cultivate a highly specialized talent pool. The Texas data center industry supported 47,604 jobs and $1.9 billion in wages during the third quarter of 2024. Furthermore, when considering both direct and indirect contributions, data centers in Texas supported over 485,000 jobs and $35 billion in labor income in 2023.
Beyond employment, these facilities contribute substantially to local tax revenues through real and personal property taxes on equipment and infrastructure. This revenue provides essential funding for community services such as schools, emergency response, and infrastructure improvements. The growth of data centers also helps foster innovation and the development of technological clusters, thereby strengthening regional economies and driving further economic development for Houston small business and larger enterprises alike.
The Future of Energy and Data in Texas
The rapidly increasing power demands of modern data centers, particularly those supporting artificial intelligence, present both a challenge and an opportunity for energy companies in Texas. The state’s grid operator forecasts that statewide power demand could nearly double within five years, primarily due to AI data centers. Companies like Stabilis Solutions are at the forefront of addressing these demands by providing innovative LNG-based energy solutions, which offer reliable and cost-effective power alternatives.
A growing trend in Texas involves data centers building their own dedicated gas power plants to ensure a stable and scalable energy supply, bypassing some of the complexities of grid interconnections. For example, NRG Energy, a Houston-based power generation company, plans to construct new natural gas power plants specifically to serve data centers in Texas and other regions. This strategic move by both energy providers and data center operators underscores Texas’s continued leadership in energy innovation and its ability to adapt to the evolving needs of high-tech industries, ensuring consistent economic growth.
The integration of advanced energy solutions with critical digital infrastructure showcases the ingenuity of Texas TX entrepreneurs in meeting the demands of a data-driven world. These collaborations ensure that Texas maintains its competitive edge, providing the necessary infrastructure for technological advancement and job creation.
Charting Houston’s Economic Course
The recent $200 million contract secured by Houston’s Stabilis Solutions is more than just a business deal; it is a clear indicator of Houston’s and Texas’s forward momentum in the critical sectors of energy and technology. This achievement highlights the innovative spirit of local companies and the supportive environment that allows Houston TX business to thrive, attracting significant private investment and creating a ripple effect of job opportunities and economic benefits across the state. As Houston continues to grow as a hub for both energy innovation and digital infrastructure, the strategic decisions made by its entrepreneurs and the supportive policies of the state will be crucial in shaping a prosperous future. We encourage our readers to support local businesses and stay engaged in understanding the dynamics of Houston’s economic future, ensuring that the spirit of innovation continues to drive our community forward.
Frequently Asked Questions
Q: What is the value and duration of the Stabilis Solutions data center deal?
A: The multi-year take-or-pay LNG supply contract is valued at an estimated $200 million over its initial two-year term, starting in the first quarter of 2027.
Q: What is Stabilis Solutions’ role in this deal?
A: Stabilis Solutions, Inc., a Houston-headquartered company, will provide LNG supply for a U.S. behind-the-meter data center power project.
Q: How will this deal impact Stabilis Solutions’ revenue?
A: Management expects this agreement to generate about $100 million in annual revenue, which is more than its total consolidated revenue in any prior year.
Q: Where are Stabilis Solutions’ main operations located?
A: Stabilis Solutions is headquartered in Houston, TX, with LNG production facilities in George West, TX, and Port Allen, LA.
Q: What factors are driving the growth of the data center market in Houston?
A: The Houston data center market is experiencing fast growth due to its regional infrastructure in energy, a diversified economy, an excellent geographic location, and abundant, affordable energy resources.
Q: What is the economic impact of data centers in Texas?
A: Data centers play a crucial role in local economic growth, stimulating secondary economic activity, and creating direct employment in IT, engineering, cybersecurity, and facility management. The Texas data center industry supported 47,604 jobs and $1.9 billion in wages during the third quarter of 2024. In 2023, data centers in Texas supported over 485,000 jobs and $35 billion in labor income, considering both direct and indirect contributions.
Key Features of the Stabilis-Data Center Deal
| Company | Stabilis Solutions, Inc. |
| Headquarters | Houston, TX |
| Deal Type | Multi-year take-or-pay LNG supply contract |
| Contract Value | Estimated $200 million over initial two-year term |
| Commencement | First quarter of 2027 |
| Annual Revenue Expectation | Approximately $100 million |
| Beneficiary | U.S. behind-the-meter data center power project |
| Stabilis’s Role | Provider of clean energy solutions (LNG) and virtual pipeline services |
| Geographic Scope of Stabilis Operations | North America (U.S., Mexico, Canada) |
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Author: STAFF HERE HOUSTON TX WRITER
The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
