This Month's Latest Tech News in Midland, TX - Saturday May 31st 2025 Edition

Midland, TX stands at the crossroads of AI innovation and energy transformation as new developments reshape its economic landscape. Local startup A.I. Driller is reinventing the oil rig, empowering a single operator to monitor up to 20 rigs remotely with its all-in-one AI software - dramatically increasing efficiency while overcoming early skepticism from an industry known for tradition.

“Most companies don't have the resources to hyperfocus on a single rig. Our software lets them monitor 20 rigs from a single screen - what used to take 20 people can now be done by one,”

notes COO Richard Zamora (read more on A.I. Driller's rise in Midland, TX).

Meanwhile, the region prepares for a 250MW net-zero energy AI/HPC data center, spearheaded by New Era Helium and Sharon AI's joint venture, leveraging the Permian Basin's abundant power and carbon capture infrastructure.

These changes coincide with a notable slowdown in oil drilling permits as AI-driven forecasts highlight a drop from 2,304 permits in spring 2024 to just 1,790 expected in 2025, reflecting shifting market pressures (see the AI-based forecast for Permian Basin drilling permits).

As Midland accelerates tech and energy advances, industry leaders are encouraged to attend regional events like the SPE Permian Basin Energy Conference (Nov. 18–20, 2025), where stakeholders can network, share insights, and tackle these evolving challenges (discover details about the SPE Permian Basin Energy Conference).

Midland's oilfields are gaining national recognition as AI Driller's automation platform revolutionizes drilling efficiency throughout the Permian Basin. By centralizing real-time well data in the cloud and offering integrated solutions for directional planning, anti-collision risk detection, and mud motor management, AI Driller gives engineers and operators “all the information for my well in one place… hands down the most user friendly, time saving, and overall helpful tool in our toolbox,” according to drilling professionals.

The company's user-centered platform streamlines every stage from well planning to execution, allowing experts to compare performance across dozens of wells in minutes - a process that previously took days.

This surge in automation comes as industry giants like Halliburton and Nabors, leveraging advanced platforms such as LOGIX and SmartROS, deliver land-based closed-loop drilling with reduced well construction time and higher penetration rates, pushing boundaries in operational efficiency and safety (AI Driller's automation platform designed to boost drilling efficiencies; AI Driller's all-inclusive operations platform; Halliburton and Nabors bring drilling automation to the forefront in Midland, TX).

This growing convergence of AI, cloud analytics, and automation is solidifying Midland's role at the intersection of traditional energy production and cutting-edge technology.

The much-anticipated Texas Critical Data Centers (TCDC) project - a 250MW net-zero AI and high-performance computing campus - has officially launched its first phase in Ector County, marking a major leap for tech infrastructure in the Permian Basin.

Formed as a joint venture between natural gas and helium supplier New Era Helium and AI infrastructure developer Sharon AI, the project has expanded from 200 to 235 acres, sourced from regional partner Grow Odessa, with the land deal expected to close within 90 days.

TCDC will be powered by onsite reciprocating natural gas engines with integrated carbon capture technology, targeting initial online capacity of 100MW by December 2026 and full build-out shortly thereafter.

This initiative not only brings advanced data infrastructure to West Texas but also underlines a commitment to sustainability; the project aims to sequester about 250,000 metric tons of CO₂ annually using Carbon Capture, Utilization, and Storage (CCUS), and positions itself for future 45Q carbon tax credits.

Reflecting on the venture's strategic vision, New Era Helium CEO Will Gray noted,

“With the first phase of the data center development project now underway and a clear path to activation in 2026, we are taking significant steps toward building an energy-integrated platform that supports the future of AI, HPC, and semiconductor innovation.”

For deeper insight, explore the full project scope and corporate strategy in this Digital Infra Network breakdown of TCDC's launch, review the operational and technical details in Data Center Dynamics' coverage of the Ector County site expansion, and see industry background in Hart Energy's briefing on the joint venture's progress.

Feature	Details
Total Capacity	250 MW (AI/HPC)
Land Area	235 acres
Primary Power Source	Natural gas with carbon capture
CO₂ Sequestration Target	~250,000 metric tons/year
Phase 1 Go-Live	100 MW by Dec 2026
Partners	New Era Helium & Sharon AI

Texas has rapidly expanded its use of AI-powered surveillance under Governor Abbott's $11 billion Operation Lone Star, transforming the border into a proving ground for advanced monitoring tools - and raising new privacy and policy concerns.

The Department of Public Safety's arsenal now includes technologies like Tangles, an AI platform capable of scraping the open, deep, and dark web and tracking cell phones without a warrant, thanks to multimillion-dollar contracts that rival federal spending and enable broad, sometimes warrantless, surveillance of Texans.

These tools, alongside facial recognition software from Clearview AI, mobile phone forensics from Cellebrite, and a sprawling network of over 9,000 wildlife cameras, are funded through state legislation with minimal oversight and scant restrictions, prompting warnings from advocates and legislators alike.

Current legislative efforts such as House Bill 149 and Senate Bill 1964 offer only limited transparency and oversight, leading civil liberties organizations like the ACLU to argue that such “wartime technologies…are now in the hands of local cops” and risk normalizing mass surveillance.

As the expansion proceeds, experts warn, “Many of these technologies are eroding that reasonable expectation of privacy that people have, and [are] kind of leading to this police surveillance state.”

“Our founding fathers did not actually want a police state... The most dangerous part of all of this is the ability for government to have their hands on this and use it against us.” - Rep. Giovanni Capriglione

Funding and contracts are summarized below:

Session	Purpose	Amount
Last biennial budget	Threat detection software, intelligence tech, Drawbridge cameras	$22.2M, $6M+, $17M
Current session draft	Investigative services, Drawbridge expansion	$10M, $10M
2025–2029 Tangles Contract	AI-powered surveillance	$5.3M

Learn more from the Texas Observer's in-depth report on AI border surveillance, see details on Texas' legislative response and oversight challenges, or read about the privacy implications of Tangles in the Business & Human Rights Resource Centre analysis.

Texas is on the verge of passing one of the most comprehensive state-level AI regulatory bills in the nation after the Texas Responsible AI Governance Act (HB 149, or TRAIGA) cleared the Senate in a unanimous 31-0 vote on May 23, 2025.

Set for the governor's signature and an effective date of January 1, 2026, HB 149 tackles issues such as biometric data privacy, anti-discrimination, and government transparency by prohibiting social credit scores and requiring disclosure of government AI use.

It establishes civil penalties for violations and empowers the Attorney General as the sole enforcement authority, with no private right of action, while carving out exceptions for hospital districts and higher education.

Significant investments - over $25 million initially, plus $10 million annually - will fund staffing, new oversight councils, and a regulatory sandbox program, though concerns remain over compliance burdens for small businesses and open-source developers.

Proponents argue the bill “provides a responsible, light touch framework that grants businesses clear rules of the road, paving the path for Texas to lead the charge in American dominance in this essential space”

“HB 149 positions Texas at the forefront of the dawning Golden Age of American Innovation. Our state will continue to provide a regulatory environment where AI can flourish while protecting the vulnerable from demonstrable harms.”

For details on transparency provisions and privacy safeguards, see the Texas Tribune's detailed breakdown on the bill's approach to AI oversight.

The evolving legislative text and milestones are tracked at Texas Bill Tracking for HB 149, while an in-depth discussion of costs and compliance challenges is available at Texas Policy Research's analysis of HB 149 compliance and costs.

Key HB 149 Provisions	Details
Government Use Disclosure	Requires agencies to disclose AI use to the public
Biometric Data Protections	Tightens rules for collection/retention, bars unauthorized use
Civil Penalties	$10,000–$200,000 per violation
Exemptions	Hospital districts, higher education, insurers, and federally insured banks
Oversight	Texas Artificial Intelligence Council (advisory), Attorney General enforcement
Fiscal Impact	$25M biennial cost, $10M annually thereafter

Chevron is leading a wave of efficiency in the Permian Basin through the rollout of its AI-driven triple-frac technology, which is set to be adopted in over half of its wells by 2025.

This innovative strategy - supported by advanced sensors, real-time data analytics, and remote operations - not only slashes drilling costs by 12% but also accelerates oil output to help Chevron approach its ambitious goal of producing 1 million barrels of oil-equivalent per day in the region as reported by Yahoo Finance.

Between 2012 and 2024, Permian oil production surged from 1 million to more than 6 million barrels per day, and Chevron's AI enhancements have driven productivity and improved execution performance by over 80% since 2019.

The company continues to emphasize capital discipline and lower emissions, with AI contributing to a 60% reduction in methane intensity and a focus on environmental stewardship as detailed in Chevron's news release.

Investments approaching $9 billion in U.S. energy projects this year will further stimulate job creation, with the Permian Basin alone supporting more than 630,000 jobs in Texas and over 850,000 nationwide.

The integration of triple-frac AI, coupled with continuous environmental and economic innovation, reinforces Chevron's role in powering both Midland's and the nation's energy future according to Chevron's 2025 operations report.

New Era Helium is rapidly positioning Midland, TX, as a national hub for AI infrastructure through its ambitious partnership with Sharon AI, forming the Texas Critical Data Centers (TCDC) joint venture.

Together, they're advancing a 250MW net-zero energy data center project in Ector County, anchored by a 235-acre campus powered by behind-the-meter natural gas from New Era's substantial reserves - over 1.5 billion cubic feet of proved and probable helium, spanning 137,000+ acres.

Phase one (100MW) is scheduled to be operational by December 2026, with advanced carbon capture technology aiming to sequester 250,000 metric tons of CO₂ annually.

This project is also notable for its integration of helium, a critical element for semiconductor manufacturing, AI hardware cooling, and quantum computing, supporting the broader U.S. CHIPS Act push for domestic production.

The table below highlights key project details:

Attribute	Detail
Data Center Capacity	250MW (100MW Phase 1 by Dec 2026; 250MW mid-2027)
Site Size	235 acres (expansion from 200 acres)
Power Source	Natural gas with Carbon Capture, Utilization, and Storage (CCUS)
Helium Reserves	1.5+ billion cubic feet
CO₂ Sequestration	~250,000 metric tons/year

“With the first phase of the data center development project now underway and a clear path to activation in 2026, we are taking significant steps toward building an energy-integrated platform that supports the future of AI, HPC, and semiconductor innovation,” said E. Will Gray II, CEO of New Era Helium, Inc.

For a deeper dive on the project's sustainability strategy and execution milestones, visit Powering AI in the Permian: Texas Critical Data Centers' Sustainable Energy Play.

The evolution, land acquisition, and technical plans behind this initiative are tracked in New Era Helium Initiates Phase 1 of 250MW Data Center Project, while broader business and financial context is provided by New Era Helium's strategic overview.

Nvidia reported a record-shattering $44.1 billion in revenue for Q1 FY2026, marking a 69% year-over-year surge, with data center revenue alone jumping 73% to $39.1 billion - a testament to the insatiable global demand for AI infrastructure.

Despite a $4.5 billion charge and an additional $2.5 billion in lost sales due to new U.S. export controls on H20 chips bound for China, the company's core earnings and margins held strong, underscoring Nvidia's dominant position in the AI chip market.

CEO Jensen Huang emphasized,

“Sovereign AI is a new growth engine for Nvidia,”

signaling the company's pivot toward helping nations worldwide develop independent AI infrastructure as a way to offset Chinese market restrictions.

Investor confidence remains robust, with Nvidia's shares rising sharply after earnings; the company expects Q2 revenue of $45 billion despite anticipating an $8 billion loss related to export bans.

The broader impact of these export restrictions is illustrated below:

Q1 FY2026	Q/Q Change	Y/Y Change	Data Center Revenue	Export Restriction Impact
$44.1B	+12%	+69%	$39.1B	-$4.5B (charge), -$2.5B (missed sales)

For more on Nvidia's financial results and export challenges, see the official NVIDIA Q1 2026 results, insights on Nvidia's data center dominance and global market performance, and detailed analysis on the H20 chip export restrictions and future outlook.

Visa is ushering in a new era for fintech and digital commerce in West Texas with the rollout of its “Intelligent Commerce” platform, a suite of integrated APIs that enable AI-powered shopping agents to search, recommend, and securely complete purchases on behalf of users.

Major partnerships with companies such as OpenAI, Anthropic, Microsoft, and Stripe position Visa's system at the core of a fast-growing agentic commerce landscape, where users simply upload their card details once - tokenized for security - and set personalized spending limits for autonomous agents to transact safely and efficiently through the Visa network.

As Visa collaborates with global AI and technology leaders, this shift means Midland's fintech developers can leverage robust authentication, tokenization, and real-time fraud prevention to build new commerce experiences while offering West Texans personalized, frictionless checkouts.

West Texas merchants and consumers alike stand to benefit: businesses gain reduced fraud and higher conversion rates, while individuals maintain granular control and protection even as AI performs the heavy lifting of booking travel, restocking pantries, or tracking target prices.

As Jack Forestell, Visa's Chief Product and Strategy Officer, noted,

“Transformational, on the order of magnitude of the advent of e-commerce itself.”

For more on the AI-driven evolution and what it means for everyday spending, see coverage on Visa enabling AI agents to make purchases with your credit card.

Midland's ambitions to become a major hub for data and AI infrastructure now face serious headwinds from newly imposed tariffs and the urgent need for power grid upgrades.

With baseline tariffs at 10% for most imports and up to 54% on Chinese goods, the data center sector is experiencing sharp increases in construction material costs (such as steel and aluminum, now subject to 25% tariffs), delayed project timelines, and growing uncertainty over long-term capital planning.

As detailed by Data Center Frontier's report on tariffs and supply chain shifts, operators must contend with higher prices for critical hardware like semiconductors, networking equipment, and especially large power transformers - over 80% of which are imported and now face 18–24 month lead times.

The challenges are compounded by Texas's grid congestion and labor shortages, raising real concerns for new AI data center builds in the region. According to the Dallas Federal Reserve's latest survey, 67% of Texas firms report increased input costs and 40% expect to cut capital spending due to tariffs, while 59% already feel negative impacts.

These pressures ripple through supply chains, as highlighted by S&P Global, where Q1 2025 imports for data center construction goods jumped 79.6% year-over-year in a race to preempt further duties but failed to stop price forecasts from rising up to 5.6% on networking cables and 4.5% on power transformers.

The sector's uncertainty is summed up in a recent industry quote:

“We need to make decisions, but the ball is constantly moving.”

For a detailed breakdown of tariff impacts, see the summary table below.

To adapt, companies must diversify suppliers, invest in local resources, and brace for a period of cost volatility - check the full S&P Global Market Intelligence analysis for actionable data.

Tariff/Product	2025 Rate	Key Impact
Baseline import tariff	10%	Universal, raises all imported equipment/materials costs
Chinese imports (general)	Up to 54%	Severe price hikes, supply volatility
Steel (structural, transformers)	25%	Construction delays, material shortages
Transformer imports	>80% imported	18–24 months lead time, grid expansion bottlenecks
Networking cables, power supplies (YoY price forecast for 2026 Q1)	+5.6% (cables), +4.5% (transformers)	Persistent inflation in capital equipment

Midland and the broader Texas labor market are feeling the sharp effects of nationwide AI-driven automation and economic restructuring, as mass layoffs sweep across industries from energy to tech.

Chevron is set to lay off over 200 employees in Midland County by mid-July 2025 as part of a sweeping global reduction of up to 9,000 jobs, with automation and efficiency cited as key rationales - a trend echoed by hundreds of firms across Texas and the nation.

This local cut fits into a larger state and federal context: Texas Instruments recently announced 3,400 layoffs, while federal workforce reductions of over 60,000 are disrupting key agencies and energy infrastructure.

Recent reporting highlights the impact on various sectors and communities, including not just oil and tech, but healthcare, transportation, and manufacturing, with ripple effects like delayed projects, increased unemployment, and straining of social support systems.

As summarized by Fox Business on Chevron Texas layoffs,

"Chevron is taking action to simplify our operating model, execute work faster and more effectively."

For a state-wide perspective, OpenTools' analysis of 2025 layoffs details losses at Texas Instruments, Dickies Workwear, and major healthcare providers, underscoring the scale and urgency of workforce adaptation needs (Texas mass layoffs analysis).

Meanwhile, the federal downsizing is also forcing a reckoning for energy resilience and rural support, slowing clean energy projects and testing local communities' economic stability (impact assessment of federal workforce cuts).

As Midland faces the coming months, the challenge will be to balance short-term shock with long-term opportunities in workforce retraining and diversification.

As Midland advances at the intersection of energy and artificial intelligence, the community faces both unprecedented opportunity and profound disruption. Recent data reveals that AI-driven shifts are triggering significant workforce reductions - Chevron alone will lay off over 200 local employees this July as part of a global restructuring strategy aimed at increasing organizational efficiency and long-term competitiveness (Chevron layoffs in Texas).

Across the tech sector, over 76,000 jobs have already been lost to AI in 2025, with entry-level and mid-skill roles most vulnerable, as automation reshapes job functions faster than ever before - underscored by the fact that an estimated 513 jobs are being automated away daily this year (AI's impact on 2025 job market).

Meanwhile, Texas lawmakers are pushing sweeping new AI regulations intended to protect consumers but also raising concerns about overregulation and long-term costs for innovators and taxpayers (Texas AI regulatory debate).

As the landscape rapidly changes, the imperative for reskilling - through local programs and accessible bootcamps - has never been clearer for Midland's workforce, reinforcing that the community's resilience will hinge on deliberate steps to balance technological progress with the preservation of opportunity and core regional values.