A proposed data center planned for Henderson County will not be pursued by developers after the project was assessed as failing to meet expectations set by Gov. Greg Abbott for similar projects.
The developers cited “perspectives shared by residents, local leaders and stakeholders” as reasons for the project cancellation, among others.
Diode Ventures stated its vision “is to become trusted development partners … with innovative solutions in sustainable and critical infrastructure fields.”
The company was expected to build out the data facility over 12 years near Cedar Creek Lake, about 90 miles southeast of Fort Worth, according to the Fort Worth Star-Telegram.
Additionally, the plant was expected to use 1.5 million gallons of lake water per day, increasing to as much as 20 million gallons per day in the future. That usage is equivalent to nearly 10 percent of the water consumed by the city of Fort Worth per day in 2025.
The project cancellation was announced to Henderson County Judge Wade McKinney and county commissioners yesterday.
Rachel Attebery and Josh Johnson, co-presidents of Diode Ventures, stated that “Governor Greg Abbott has made clear that data centers seeking to do business in Texas must be responsible stewards of the state’s natural resources, power infrastructure, and most importantly, the communities in which they operate. Diode shares that expectation …”
“We support practices that allow for responsible data center development, including the use of advanced water efficient technologies, like closed-loop and air-cooled systems, while engaging openly with communities from the beginning of the site exploration process,” added Attebery and Johnson.
This comes as Abbott, along with 22 other governors across the nation, recently signed a Ratepayer Protection Pledge advanced by President Donald Trump.
The signatories pledged “to protect American consumers from price hikes due to data center energy and infrastructure requirements, and lower electricity costs for consumers in the long term while developing the infrastructure needed to maintain America’s economic and technological leadership.”
In mid-June, Abbott directed the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to place stricter requirements on data centers, including requiring “that all new data centers be built with water-efficient technologies …” and ensuring “data centers add to Texas’ electrical capacity, not just its electric demand.”
“Data centers that want to do business in Texas must meet a clear standard. This project did not,” said Abbott in his announcement of the Diode project cancellation.
“Diode did the right thing by withdrawing their project. If other data center developments refuse to meet these standards, I expect them to do the same.”
