Diode Ventures scraps data center plans in Henderson County, Texas
Diode Ventures has announced it is no longer pursuing plans for a data center in Henderson County, Texas, that would have drawn millions of gallons of water daily from Cedar Creek Lake. This decision follows significant community opposition and a directive from Gov. Greg Abbott for data centers to be responsible stewards of natural resources.
Diode Ventures has decided to abandon its plans for a data center project in Henderson County, Texas, which had faced strong local opposition due to concerns over its proposed water usage. The planned facility, located between Trinidad and Tool on the west side of Cedar Creek Lake, a primary water source for Fort Worth, would have required up to 5 million gallons of raw water daily, significantly more than the local West Cedar Creek Municipal Utility District's current capacity.
Henderson County Commissioner Wendy Spivey shared a letter from Diode Ventures stating the site "does not meet the higher standard we believe should guide data center development." This move aligns with a recent directive from Gov. Greg Abbott, who ordered Texas data centers to be "responsible stewards" of natural resources, power infrastructure, and communities. Abbott also announced plans to seek state law to formally implement new standards for data centers.
Residents of Henderson County had actively opposed the project for months, forming advocacy groups and packing public meetings to voice concerns about water consumption and a perceived lack of transparency from the company. Kenneth Malin, General Manager of the West Cedar Creek Municipal Utility District, confirmed his agency would not support the project. While residents like Stacey Farmer celebrate this victory, they remain vigilant, with attorney Ashley Cook noting that the interest in developing data centers along waterways persists across Texas, including potential future projects in Kaufman and Tarrant Counties.