Firm pulls data center plans in E. Texas
Diode has withdrawn its plans for a data center near Cedar Creek Lake in Henderson County, Texas. The company determined the project did not meet Governor Greg Abbott's directives or community expectations regarding environmental impact, power grid strain, and water usage. Governor Abbott praised the decision and announced intentions to pursue legislation codifying these standards for all data centers in the state.
Diode has decided to withdraw its proposed data center project near Cedar Creek Lake in Henderson County, Texas. The company notified Henderson County officials, stating that the project did not align with Governor Greg Abbott's directives or meet community expectations.
Governor Abbott commended Diode's decision, emphasizing that data centers operating in Texas must prioritize communities, protect natural resources and the power grid, and respect residents' quality of life. He reiterated his expectation for other data center developers to follow suit if their projects fail to meet these standards.
Abbott's directives, issued on June 10 to the Public Utilities Commission (PUC) and the Electric Reliability Council Of Texas (ERCOT), mandate that data centers ensure reduced residential electrical bills, cover all their electrical infrastructure costs, add to Texas' electric capacity, and utilize water-efficient technologies like closed-loop cooling systems. Additionally, they must implement best practices such as setbacks and noise-reduction technology to mitigate community impacts. The Governor announced plans to seek legislation to codify these expectations and require large data centers to annually report electricity and water usage data to the PUC. Future legislative activity may also include repealing sales tax exemptions and other incentives for data centers.