
Plans scrapped for data center that would have pulled water from Tarrant-owned lake
Diode Ventures has abandoned plans for a data center in Henderson County, Texas, that would have drawn nearly 2 billion gallons of water annually from Cedar Creek Lake. The decision followed significant public outcry and a resolution from the Henderson County Commissioners Court opposing high-water-use data centers.
Diode Ventures has scrapped its plans to develop a data center near Tool, Texas, in Henderson County, after facing considerable public opposition over the project's proposed water consumption. The facility had sought to draw up to 5 million gallons of water daily, potentially increasing to 20 million gallons, from Cedar Creek Lake, a source owned by the Tarrant Regional Water District (TRWD).
Henderson County Commissioner Wendy Spivey confirmed Diode Ventures' decision, expressing satisfaction with the news. The advocacy group Save Cedar Creek Lake, founded by Dallas attorney Ashley Cook, celebrated the outcome, crediting community activism and the support of Henderson County Judge Wade McKinney and the Commissioners Court. Cook, however, cautioned that other developers might still consider the site.
In May, the Henderson County Commissioners Court adopted a resolution, introduced by Commissioner Spivey, opposing any data center development that would consume a high volume of water or lack adequate safeguards for county resources. While largely ceremonial due to state law limitations on county authority, the resolution urged the Texas Legislature to grant counties greater oversight regarding data center developments.