Houston Manufacturer Expanding for AI Growth, Market briefs

In Houston, CBRE has secured construction financing for the development of a 144,000-SF manufacturing facility in Houston for Electronic Power Design, a Houston-based manufacturer that produces electrical equipment to support growth in AI and data center development.

Unprecedented Surge in AI and data center development

“The unprecedented surge in AI and data center development has created massive and sustained demand for high-capacity electrical equipment, leading to significant strain and extended lead times across the power infrastructure supply chain,” said Justin Rowden, President of EPD. “We look forward to serving our clients more efficiently with the addition of our new space.”

The new plant will be located in North Houston near Interstate 45 and Bush Airport at 430 Lockhaven Drive. The site is adjacent to EPD’s existing 241,481-SF facility. This new building will enhance the company’s production capacity, provide space for continued innovation and position EPD for long-term success.

John Fenoglio

CBRE Capital Markets’ Debt & Structured Finance team, represented by John Fenoglio and Brock Hudson in Houston secured the 85% loan-to-cost construction financing for EPD in addition to a working credit facility

“This new facility is a strategic investment in EPD’s future,” said Hudson, vice president at CBRE. “Building on decades of blue-chip stability, EPD is now experiencing massive, accelerated growth as a key supplier powering the AI and data center boom. CBRE is proud to support EPD’s expansion and looks forward to watching the company cement its position as key supplier for the next generation of global infrastructure.”

EPD is a leading manufacturer of low-voltage electrical distribution equipment, delivering power solutions for some of the world’s most complex and demanding infrastructure. The new project represents a significant expansion for EPD, reinforcing their commitment to meeting market demand and providing superior outcomes to their customers.

Construction on the facility has already started. EE Reed is the general contractor.

Houston: a Hotbed of Manufacturing Space for Tech

Industrial real estate in Houston has been a strong sector and construction has been robust. New industrial property deliveries spiked to their highest level since 2023 with 9.6 million SF of new completions. as stated by a third quarter report by CBRE.

Earlier this year, Apple reported it will open a 250,000-SF manufacturing facility in Houston in 2026. The Apple plant will produce servers that will play a key role in powering Apple Intelligence.

In 2025, Taiwan-based Foxconn Corp., a manufacturing partner for chip maker Nvidia, purchased the four-building, 1 million-SF Fairbanks Logistics Park in northwest Houston from Dalfen Industrial for $142 million. The 86.3-acre industrial park, is in the 8700 block of Fairbanks North Houston Road.