Proposed Texas data center plans scrapped for not meeting Gov. Abbott's standards

News Clip0:46KVIA ABC-7·TX·7/26/2026

A proposed data center project in Henderson County, Texas, developed by Diode Ventures, has withdrawn its plans. This action follows the project's failure to meet expectations set by Governor Greg Abbott regarding data center operations in the state, particularly concerning electricity and grid reliability. Governor Abbott has stated he will seek legislation to formalize these expectations.

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Gov: Texas Governor Greg Abbott, Public Utilities Commission, Electric Reliability Council of Texas, Henderson County Officials

Texas Governor Greg Abbott announced that a proposed data center in Texas has withdrawn its plans after failing to meet the Governor's expectations. Diode Ventures, the developer for the proposed data center originally planned for Henderson County, sent a notice to county officials indicating the project did not meet these standards.

Henderson County is located southeast of the Dallas-Fort Worth area. Governor Abbott had outlined his expectations in a June 10th directive issued to the Public Utilities Commission and the Electric Reliability Council of Texas, aiming to ensure grid reliability and efficiency. The Governor further stated his intention to seek legislation to codify these expectations into law.