Developer withdraws plans for East Texas data center due to Gov. Greg Abbott’s directives
Diode Ventures has withdrawn its plans for a data center project in Henderson County, Texas, near Cedar Creek Lake. The developer cited Governor Greg Abbott's recent executive directives on data center regulations as the primary reason for the retraction. Local community opposition also played a significant role in the project's halt.
Henderson County, Texas, witnessed the withdrawal of a proposed data center project by Diode Ventures, a Kansas-based land-use developer. The company cited Governor Greg Abbott's recent executive directives on data center regulations as the reason for retracting its proposal near Cedar Creek Lake. Governor Abbott, on June 10, issued three directives to the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT), emphasizing that data centers in Texas must meet high standards for resource management and community impact.
The project, intended as a large-scale computing and cooling facility, would have utilized Cedar Creek Lake water and was planned within a developed residential subdivision, raising significant local concerns. Diode Ventures co-presidents Rachel Attebery and Josh Johnson stated that the site's proximity to the Cedar Creek Lake community did not align with their belief in higher standards for data center development. They affirmed their commitment to meeting state and local standards and expressed a desire to focus on responsible development opportunities elsewhere in Texas.
Local opposition, spearheaded by the "Save Cedar Creek Lake" coalition formed in early 2026, played a crucial role. Thousands of residents signed a petition against the project, prompting Commissioner Wendy Spivey to acknowledge the community's fight. The coalition had planned to advocate in Austin just days after Diode's withdrawal, indicating strong public sentiment against the development. Governor Abbott has also pledged further legislative action in January 2027 to enshrine PUCT's actions into law, require water-efficient technologies, mandate usage reporting, repeal sales tax exemptions, and implement best practices like noise reduction and setbacks for data centers.