The moment of the explosion was caught on video by a doorbell surveillance camera, which shows a bright ball of fire light up the sky.
Houston Police say that the debris field is about half a mile.
Details about the cause of the blast were not immediately known, and there was confusion among residents.
ABC's local affiliate KTRK said residents had reported broken windows and doors from the blast and said at least one person had been seen with injuries. One woman told a local news station that her roof collapsed and she needed to be rescued by neighbours.
One resident told KPRC that the explosion was so strong that it "knocked us all out of our bed".
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"He said, 'I can hear a very loud hissing sound, '" Bobbie said. The owner of the company said the explosion originated from a tank holding extremely flammable gas, which is used to make plastic products.
"It busted out every window in our house". In the meantime, investigators planned to survey the blast zone with drones, and Acevedo asked people as far as a mile (1.6 km) away to search their yards and neighborhoods for evidence. A hazardous materials team monitored air quality, Pena said.
Fire department inspectors are gathering information about the business's full chemical inventory, and the company's owner has been cooperating with the investigation, officials said. "It busted everybody's garage door in around here... and closer toward the explosion over here, it busted people's roofs in and walls in".
Photos showed damage to windows. A massive explosion early Friday leveled a warehouse and damaged nearby buildings and homes, rousing frightened people from their sleep miles away.
Following the explosion, temporary shelters were set up at 4703 Shadowdale Drive.
Flames no longer were visible by daylight, but firefighters hadn't explored the blast site because an unspecified gas was flowing in the damaged business, and crews were trying to shut it off, Houston fire Chief Samuel Pena said.