East Texas data center project pulled after backlash
A data center project near Cedar Creek Lake in Henderson County, Texas, has been withdrawn by the developer following growing bipartisan backlash and a directive from Governor Greg Abbott for higher development standards. The directive requires data center developers to pay for their own power and reduce water use to avoid passing utility costs to customers. Governor Abbott praised the decision and plans to work with the Texas Legislature on future regulations.
A proposed data center development near Cedar Creek Lake in Henderson County, Texas, has been withdrawn by its developer. The company cited growing bipartisan backlash against such projects and a directive from Governor Greg Abbott, which calls for higher standards for data center development in rural areas.
According to company officials, their plans did not meet the community's expectations or the governor's directive. Governor Abbott's mandate, along with actions by the Public Utility Commission, is set to implement new rules requiring data center developers to fund their own power infrastructure and reduce water consumption, preventing increased utility costs for other consumers.
Governor Abbott lauded the developer's decision to abandon the project, emphasizing that they "did the right thing." He further stated that he expects other data center developments to meet these elevated standards or follow suit and withdraw their proposals. The governor also announced plans to collaborate with the Texas Legislature during the 2027 legislative session to establish potential regulations for future data center projects.