Data center, now on hold, sought up to 2 billion gallons from Tarrant-owned lake
Plans for a data center in Henderson County, Texas, developed by Diode Ventures, are on hold due to the developer's failure to justify its request for up to 2 billion gallons of water annually from Cedar Creek Lake. Local residents and a county resolution oppose data centers with high water consumption and inadequate safeguards. Despite the delay, an opposition group believes the project may still be moving forward.
A proposed data center project by Diode Ventures in Henderson County, Texas, near Tool, has been put on hold as the developer has not provided adequate justification for its request to draw a substantial amount of water, up to nearly 2 billion gallons annually, from Cedar Creek Lake. The Tarrant Regional Water District (TRWD), which owns the lake, stated it has not received sufficient information to complete a technical evaluation and has not entered into new contracts for data center water.
Local opposition to the project is strong, with residents expressing concerns about water consumption, noise, vibrations, emissions from a proposed natural gas power plant, and increased traffic. Ashley Cook, who founded "Save Cedar Creek Lake" to stop the development, has observed engineering company trucks surveying Diode-owned property, leading her to believe the project may still proceed despite public resistance and water access hurdles. Henderson County Commissioner Wendy Spivey introduced a resolution, which the commissioners court adopted, opposing data centers that consume high water volumes or lack safeguards, though its power to halt developments is limited by state law. The resolution urged the Legislature to grant counties more oversight. The Fort Worth City Council also requested a moratorium on new data centers, indicating broader regional concerns.
Diode Ventures had initially approached the West Cedar Creek Municipal Utility District for water, but talks stalled, leading them to TRWD. Emails obtained by attorney Ashley Cook show a TRWD representative questioned the large water volume requested by Diode, asking for proof that data centers are not wasteful. Diode's spokesperson declined to comment directly on the project's status, stating the company conducts due diligence on site considerations and seeks community benefits. Diode's website does not list the Henderson County project but mentions other Texas developments, including a technology park in Red Oak, and previously sold a hyperscale data center in Kansas to Meta.