The Future of Texas begins with innovation: Joe Lonsdale
This is a preview of our Texas 2036 newsletter launching our Future of Texas podcast with our first guest, Joe Lonsdale. To receive this weekly look at our work, sign up here.
Episode 1: The Future of Innovation
(Left to right) Host Brad Swail talks with Joe Lonsdale and SVP of Policy and Advocacy John Hryhorchuk in episode one of the “Future of Texas” series.
Innovation has always shaped the Texas story. But what happens when the pace accelerates?
When billions flow into semiconductors, AI infrastructure, robotics and advanced manufacturing across the state, what will keep Texas competitive in the future?
As Texas moves toward its bicentennial in 2036, the next decade will help determine what the next century looks like.
The Future of Texas series kicks off with the future of innovation in Texas.
This Week’s Podcast Guest: Joe Lonsdale
Few investors have a clearer view of where innovation is headed than Joe Lonsdale — entrepreneur, venture capitalist and co-founder of Palantir Technologies.
In this first conversation, Lonsdale joins Texas 2036’s John Hryhorchuk to discuss why Texas is emerging as one of the most important innovation hubs in America.
“Our investments follow the talent,” Lonsdale wrote in a Wall Street Journal op-ed in 2020. “We’re betting that the future of America is going to be built in the middle of the country, in places with good government and a reasonable cost of living. In other words, places like Texas.”
📺 Watch the full episode on YouTube.
Innovation Is Accelerating in Texas
The numbers tell a striking story.
- Tech employment in Texas grew 32.6% from 2019 to 2025, more than double the national growth rate of 14.2%, according to CompTIA’s State of the Tech Workforce 2025 report.
- In Austin alone, startups raised $7.8 billion in venture capital in 2025, up 116% over 2024. Austin ranked fifth among U.S. cities for total venture capital investment.
- The financial sector is also recognizing Texas as a place to think outside the box, with big firms and financial exchanges like the Texas Stock Exchange, NYSE Texas and Nasdaq Texas setting up shop.
Four Factors Powering Texas Innovation
What is powering this surge in Texas-rooted innovation? Here are four factors:
1. A pro-growth, business friendly environment
With no state income tax and a reasonable and predictable regulatory environment, including the new Texas Business Court, tech entrepreneurs find it easy to set up shop here.
2. Energy production and markets no other tech hub can match
Texas produces more energy than any other state. Its electric grid and competitive power markets also allow new generation to be added as demand grows, helping support the state’s expanding economy.
3. A semiconductor boom reshaping global supply chains
The next generation of semiconductor chips and wafers are being fabricated here in Texas and will help fuel the next generation of AI-fueled economic growth.
Texas Instruments’ semiconductor facility under construction in Sherman.
4. A massive talent pipeline from Texas universities and colleges
Texas leads the nation in the number of top-tier research universities, with 16. These schools, along with the state’s 50 public community college districts and technical college system, will help produce the workforce needed to support the next cohort of tech companies.
Where Tech Is Investing in Texas
Here are a few examples of where investors are directing resources in Texas:
Did you know? Texas is on track to become the world’s largest data center market by 2030, overtaking Virginia for the top spot. About 6.5 GW of data center capacity is currently under construction in Texas.
- AI job growth in Texas is projected at 27% over the next decade (ranking fourth nationally for AI postings).
- Semiconductors and robotics facilities could triple U.S. fabrication capacity, with Texas central as a driving force in defense tech, autonomous systems and supply-chain resilience.
Three Big Questions For Our Growing Economy
The tech sector has helped fuel Texas’ tremendous economic growth, serving as a magnet for highly-skilled workers from across the globe and as a source of capital and good-paying jobs.
To continue that growth, Texas must confront head-on the following challenges:
1. Talent: Can we build and retain the adaptive workforce for AI-driven change?
A Google office building at the company’s Midlothian data center in Midlothian, Texas. (Source: Google)
The skills needed by the tech workforce are evolving quickly. Even knowing what skills will be needed in the next couple of years is becoming a challenge, due to the advancements of artificial intelligence, global market shifts and rapid industry changes.
Texas schools, colleges, universities and workforce development programs must work in tandem to ensure Texas workers are equipped with the flexible skills that will allow them to adapt to the needs of this new workforce.
2. Infrastructure: Can we scale power, water and transport without breaking?
Like other industries, the tech sector needs reliable access to water and electricity. And its workers need affordable housing and good highways to get them to and from work.
In recent years, Texas has made great strides through smart investments in its infrastructure. The state must expand on those efforts to ensure Texas can compete for future industries.
3. Competition: Can Texas seize the crown from California and beyond?
Lonsdale thinks so.
In his WSJ op-ed, he wrote, “We invest in technologies and people who will transform major industries and improve the lives of millions. It’s tragic that California is no longer hospitable to that mission, but beautiful that Texas is. Our job as entrepreneurs and investors is to build the future, and I know of no better place to do so than Texas.”
Texas 2036: Alert To The Economic Opportunity
Texas 2036 is paying close attention to the decisions being made now that will continue Texas’ 14-year streak as the top state for business relocations and expansions.
That’s why Texas 2036 is focused on fostering the talent, infrastructure and the regulatory environment that innovators need to build the next generation of companies here as well as the policies that will shape the future, such as:
- equipping students to choose career pathways tied to real opportunity.
- producing a workforce with the flexible skill sets to thrive in a rapidly evolving jobs market.
- empowering policymakers to invest in what works and exploring AI policies that support innovation while safeguarding against risks.
- safeguarding taxpayer dollars and promoting more regular reviews across agencies to improve regulatory clarity.
- maintaining a reasonable and predictable regulatory environment to encourage further innovation that benefits every corner of Texas.
How Will Innovation Impact Your Future?
You heard from us, but now we want to hear from you.
Did we miss anything? What questions do you think matter most for the next decade in innovation? Tell us your thoughts.