Jim Wood, CEO, SEG Solar

In an interview with Invest:, Jim Wood, president and CEO of SEG Solar, discussed Houston’s role in the growing solar manufacturing sector, the company’s expansion plans, and the rising demand from AI data centers. “It’s mostly data centers and AI that are really driving the demand for solar,” Wood said.

How would you describe the solar industry in the United States, especially in Texas and Houston?

Houston is generally recognized as the energy capital of the world. Historically, most global energy companies have had headquarters, offices, or a significant presence here. Many of our customers are global power producers, including companies such as ENGIE, Iberdrola, TotalEnergies, and Repsol.

Texas is now the largest solar market in the United States, having overtaken California, and that is where much of the industry’s growth is occurring. When we decided to build here years ago, we wanted a location with a strong port, transportation infrastructure, a low cost of labor, a low cost of land, and a large, skilled workforce. Houston checked all those boxes.

Now, with AI, we are seeing data centers and hyperscalers being built across Texas. As a solar panel manufacturer, we are supplying many of those projects because solar can be deployed much faster than other forms of generation. Nuclear and natural gas projects require much longer development and permitting timelines, while a solar power plant can often be permitted and built in about two years.

When combined with battery technology, solar has become an important part of powering these facilities. It’s mostly data centers and AI that are really driving the demand for solar.

SEG Solar has continued to expand its U.S. manufacturing footprint. What has given you the confidence to keep investing in Houston?

Our second plant, with 4 gigawatts of annual capacity, opens in August. Commercial production will begin shortly afterward, and by the fourth quarter, we expect to be fully operational.

We are hiring about 400 employees for that facility and are working with local community colleges and workforce development organizations to build that workforce. Our facilities are state of the art and highly automated. AI plays a major role in our quality assurance and manufacturing processes, and we have even hired machine-learning specialists whose full-time responsibility is training those systems.

We’re seeing a convergence in Texas where AI supports manufacturing while solar powers AI infrastructure. It is creating jobs and strengthening advanced manufacturing in the region.

How do you view the long-term competitiveness of U.S. solar manufacturing?

Globally, there are essentially two markets: the United States and the rest of the world. U.S. tariffs and domestic manufacturing incentives have created an environment that supports American manufacturers.

As a 100% U.S.-owned company, we have benefited from those policies. Regardless of political party, there has been bipartisan support for strengthening domestic manufacturing. Those incentive structures have allowed companies like ours to continue expanding.

We began as a 2-gigawatt manufacturer in Houston. Our second and third factories will increase our capacity to 10.6 gigawatts. Each of those facilities represents roughly a $200 million investment, all funded internally.

Since launching U.S. manufacturing in 2021, we have doubled in size every year. We expect to surpass $1 billion in revenue next year while continuing to grow profitably and achieve greater scale.

What innovations do you expect to have the greatest impact on solar manufacturing over the next few years?

One of the things I am most proud of is how we have embraced AI. While some industries have reduced staff because of AI, we have not laid off a single employee. Instead, we have moved people into new roles while continuing to grow.

AI allows each employee to accomplish much more. Years ago, we might have needed three times as many people to achieve the same output. That improves scalability and helps control costs.

Our production lines are fully automated, with little manual handling. We expect automation and robotics to continue advancing, and Houston is becoming an attractive location for technology investment because of its workforce, infrastructure, ports, and energy resources.

What has been your experience recruiting and retaining talent in Houston?

We are hiring across the board. We need attorneys, accountants, engineers, forklift drivers, truck drivers, and manufacturing employees.

The market is competitive, so we continually work to improve benefits and create a workplace where people want to stay. Many members of our core team have been with us from the beginning.

Manufacturing presents additional challenges because more solar manufacturers are opening in Texas and competing for the same skilled workers. Solar manufacturing is still a relatively new industry in the United States, so there are not yet enough experienced workers.

We are hiring 400 people now and expect to hire another 400 to 500 toward the end of the year. We focus on training, health insurance, retirement benefits, career development, and workplace culture. Our facilities are fully air-conditioned, which is something many manufacturing employees appreciate when they join us from other industries.

How are rising electricity needs and data centers changing customer expectations?

Customers today place much greater emphasis on quality. Data center developers often have their own engineering, verification, and quality-control teams working alongside us while their products are being manufactured.

Because labor is more expensive in the United States, we rely heavily on automation. That allows us to produce a higher-quality product while maintaining consistency.

Although our first factory has only been operating for about two years, we have already upgraded the equipment twice. As AI becomes more capable in manufacturing, we continue investing in new equipment that improves quality, lowers costs, and increases productivity.

What are SEG Solar’s top priorities over the next three to five years?

The United States needs more generating capacity. Electrification, AI, and data centers are driving electricity demand, while permitting timelines for nuclear and natural gas remain lengthy.

We expect solar to continue expanding, particularly as battery technology improves. Although future policy will influence the pace of growth, we believe demand for solar will continue well beyond 2030.

Our scale positions us well because large AI data centers require manufacturers capable of supplying large volumes. Many smaller manufacturers simply cannot meet those requirements.

Is there anything else you would like to highlight?

Beyond our three Houston-area factories, our next priority is bringing more of our supply chain to the United States. We would like to manufacture glass domestically, either independently or through a partnership, and eventually produce solar cells here as well.

Today, our solar cells are manufactured in Indonesia and the Philippines. Building those capabilities in the United States would require investments measured in billions of dollars rather than hundreds of millions.

We hope those future investments can be made in Texas, although the final decision will depend on incentives and support from state and local governments. We are evaluating what our expansion beyond 2030 could look like as we continue strengthening our U.S. manufacturing footprint.