Business Opportunities in Texas Infrastructure
Texas has experienced robust economic and population growth in recent years, driven by its central location, pro-business regulatory environment, and an increasing number of corporate relocations—particularly from California. Remarkably, approximately 1,500 new residents move to Texas each day. This rapid expansion is placing significant strain on the state’s infrastructure, including water supply, energy systems, education, and healthcare. In response, Texas 2036, a public policy research and advocacy organization, is actively working to influence legislation aimed at proactively addressing these emerging challenges. The goal is to attract investment and create business opportunities that support sustainable infrastructure development.
Water Infrastructure
The growing population and economic activity are driving up demand for water. This is particularly concerning as the state’s water supply is projected to decline by 18% by 2070, while demand is expected to rise by 9%. By 2050, 187 of Texas' 254 counties are projected to experience increased water demand. According to Texas 2036, at least $154 billion in water infrastructure investments will be required over the next 50 years. In response, the Texas Legislature is advancing a $2.5 billion Texas Water Fund, with plans to allocate an additional $1 billion annually to support water development and infrastructure projects.
Energy Infrastructure
Population growth also translates into increased demand for electricity. Although Texas has a long-standing reputation as a leader in fossil fuels, the state has become a powerhouse in renewable energy. Wind and solar now account for approximately one-third of Texas’ electricity generation, with the state producing more wind energy than any other U.S. state for the past 17 years—generating 120,000 MWh in 2024.
However, renewable energy policy has become politically contentious. While federal support through the Inflation Reduction Act continues to offer a 30% Investment Tax Credit through 2032, Texas has begun phasing out local tax incentives for renewable energy projects. Some House Republicans are pushing to reduce or eliminate these federal incentives starting in 2029. Despite this, large-scale developments—including AI-driven data centers like the $100 billion Stargate Project by OpenAI, SoftBank, and Oracle—are contributing to surging electricity demand, underscoring the need for investment in both traditional and renewable energy infrastructure. 2
Affordable Housing
Affordable housing has been a key factor in attracting families and businesses to Texas, where home prices have traditionally been about half those in California. However, this affordability is now under threat. Rising demand, restrictive zoning policies, and limited land availability in urban areas are driving up housing costs. In many cities, the shift toward vertical development is replacing horizontal expansion due to land scarcity.
Many affordable housing units, initially built with government subsidies, are reaching the end of their regulated rent periods, allowing owners to raise rents to market rates. This is displacing lower-income families and pushing them farther from employment centers, exacerbating traffic congestion and workforce accessibility challenges.
The availability of affordable housing is increasingly affecting the labor market. There is a growing need—and opportunity—for innovative, energy-efficient, and cost-effective housing solutions. Revising municipal requirements for minimum house sizes (currently often set between 1,500–2,000 sq. ft or 140–186 m²) could open the door for the development of smaller, more affordable single-family homes.
Strategic Timing and International Collaboration
These are long-term opportunities that require forward-thinking investment and early engagement. Now is the time to act, identify strategic partners, and secure a foothold in Texas’ evolving infrastructure landscape. Importantly, investors and innovators should leverage the 2022 Statement of Mutual Cooperation (MoU) between Texas and Finland, which highlights areas such as energy, energy-efficient materials, and building technologies as some of the key focal points for bilateral collaboration.
Vesa Jaamuru
Vice-Chair, Finnish American Business Guild
Vice-Chair of the Finnish American Business Guild Vesa Jaamuru