(The Center Square) – It’s not just west Texas that’s experiencing an AI boom, Houston is also becoming a major hub for new artificial intelligence (AI) data centers and production.
Apple has begun shipping American-made servers from its new AI plant in Houston well ahead of schedule, Apple Chief Operating Officer Sabih Khan told Fox News Digital. “Our teams have done an incredible job accelerating work to get the new Houston factory up and running ahead of schedule. We plan to continue expanding the facility to increase production next year.”
Earlier this year, Apple began constructing its new factory to support production of advanced Apple servers. In July, it produced its first test unit. Although the 250,000-square-foot server manufacturing facility was slated to begin mass production in 2026, it is well ahead of schedule.
“Previously manufactured outside the U.S., the servers from Houston will play a key role in powering Apple Intelligence, and are the foundation of Private Cloud Compute, which combines powerful AI processing with the most advanced security architecture ever deployed at scale for AI cloud computing. The servers bring together years of R&D by Apple engineers, and deliver the industry-leading security and performance of Apple silicon to the data center,” The Center Square reported. Apple Intelligence is the system used for iPhone features like proofreading, live translation, Genmoji and Siri.
Apple is also collaborating with Houston City College, a community college system, to recruit and hire students. Apple’s partnership with HCC dates to 2017, when they began a joint effort to teach iOS coding for app development through a new HCC iOS Coding and Design School. HCC is “one of a select group” of institutions nationwide selected by Apple to teach App development with Swift curriculum, it says.
Apple and HCC have partnered on several projects, including providing educational opportunities for those on probation “to train for in-demand careers and reduce recidivism.” HCC has also received funds through Apple, “Racial Equity and Justice Initiative,” created “to help students, innovators and trail-blazing organizations create a more inclusive and just society.”
Earlier this year, semiconductor manufacturer Nvidia announced it was building two supercomputer manufacturing plants in Texas: one built with Foxconn in Houston, the other with Wistron in Dallas.
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” Nvidia CEO Jensen Huang said. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”
Nvidia has also been partnering with HCC, which launched a new two-year AI program in 2020 to train students to become skilled workers in the growing AI field.
Taiwan-based Foxconn, which manufactures hardware for Apple and Nvidia, is also expanding its workforce in Houston. More than 2,000 employees already work for the company in the Houston area. The Greater Houston Partnership has estimated that Foxconn’s stated $450 million investment in Houston could generate 600 AI-related jobs at the new factories in Houston.
But it’s not just AI jobs, Taiwanese-based Hon Hai has chosen Houston as a major logistics, supply chain and manufacturing hub.
In March, Ingrasys Technology USA Inc., a subsidiary of Hon Hai, which is the parent company of Foxconn, acquired 86.34 acres of land and a one million square meter building in an industrial park in north Houston for $142 million. In September, Hon Hai Precision Industry’s subsidiary, Q-Edge Corporation, acquired factory rights in Houston for 656,658 square feet, with a nearly $35 million contract rent and management fee.
The company is expected to bolster U.S. manufacturing of AI server and other technology and offset dependence on China and other foreign supply chains.
With these moves, “Houston is emerging as the next frontier for high-tech manufacturing. Its port facilities, energy sector synergies, and low labor costs make it an ideal hub for reshored production. Amazon’s expansion in the region and the presence of established logistics firms like UPS are no accident—this is where the future of just-in-time delivery and advanced manufacturing intersects,” AI Invest says.
