'We're already in a drought': Locals sound alarm over data center planned near Henderson County wate

News Clip2:08KETK NBC·Henderson County, TX·5/22/2026

Residents in Henderson County, East Texas, are actively opposing a proposed AI data center by Diode Ventures, citing concerns over water scarcity from Cedar Creek Lake during an ongoing drought and potential strain on the local power grid. During a West Cedar Creek Municipal Utility District meeting, locals voiced strong opposition, demanding answers from the board.

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Gov: Henderson County, West Cedar Creek Municipal Utility District

People in Henderson County, Texas, gathered in force at a West Cedar Creek Municipal Utility District meeting to voice strong concerns over a proposed AI data center. Residents, many standing in the rain outside the packed meeting, pushed back against the project, arguing that profit should be secondary to the welfare of the people.

The primary worries centered on the massive amount of water the data center would require, which residents fear would deplete Cedar Creek Lake, a vital resource, especially during an existing Level 3 drought. Locals expressed apprehension that this could escalate to a Level 5 drought situation. Additionally, concerns were raised about the region's electricity grid, with residents recalling past power outages and questioning how the grid would support the data center's demands.

Diode Ventures, a Kansas-based company, has approached the district regarding the development of the data center in the Key Ranch Estates area. The Utility District's General Manager stated that no action would be taken until a feasibility study is completed, assuring residents that the project is "not even close to being a done deal."