Lake Grab, Massive Data Center Plan Targets Fort Worth's Drinking Water
A proposed hyperscale data center near Cedar Creek Lake, a primary water source for Fort Worth, is seeking to withdraw millions of gallons of water daily, raising concerns about strain on the critical water supply. Local officials and residents are opposing the plan, leading to a temporary pause on new high-intensity water commitments and calls for comprehensive environmental reviews. The project is being advanced by Diode Ventures, an entitlement developer.
A significant hyperscale data center project proposed near Cedar Creek Lake, a crucial raw-water source for Fort Worth, is seeking permits to withdraw millions of gallons of water daily. This application, filed through the West Cedar Creek Municipal Utility District, has alarmed water managers and local residents who are concerned about the strain on the region's water supply.
The initial application requested up to 5 million gallons per day, a figure that has drawn pushback. While later responses from engineering firms suggested that dry-cooling technology could reduce water demand, the uncertainty prompted the local MUD board to temporarily pause new high-intensity water commitments. The Tarrant Regional Water District (TRWD), which manages the North Texas water system, is the ultimate authority for any long-term surface-water contract and has stated it requires detailed hydrologic, engineering, and environmental analyses.
The project is being advanced by Diode Ventures, an entitlement and site-development firm affiliated with Black & Veatch, which typically secures land, power, and water access before selling entitled campuses to major data center operators. This approach means communities are often negotiating with intermediaries rather than the eventual operators.
Further complicating the proposal, state water-quality records show Cedar Creek and its tributaries are listed as impaired, necessitating extra scrutiny for new discharges and withdrawals. County commissioners have passed a resolution opposing high-volume data center water use, and a regional groundwater district has enacted temporary restrictions on new industrial wells, citing a precedent from Hill County where a data center moratorium was rescinded after a developer filed a lawsuit. The data center proposal remains under tight scrutiny as studies and public discussions continue.