Proposed East Texas Data Center Project Ends, Doesn't Meet New State Standards

Gov. Abbott announced Thursday that Diode, a data center company, will no longer pursue a project near Cedar Creek Lake in Henderson County.

Why does this matter?

Residents of the community surrounding Cedar Creek Lake expressed concerns over the project, which would be near the reservoir that feeds Tarrant County.

What are people saying?

• Diode: "Diode will not pursue land development at this location. Instead, we will focus on opportunities where we can support Texas' growing infrastructure needs. "
• Gov. Abbott: “Data centers that want to do business in Texas must meet a clear standard. This project did not.”

On June 10, Gov. Abbott set expectations for data centers to prevent the exploitation of Texas' resources.

The expectations include bringing their own power, reusing their own water, reducing electricity costs for Texans and other standards.

“Texas requires companies to put communities first, protect our natural resources and power grid, and respect the quality of life of our residents," wrote Gov. Abbott in a press release. "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.”

The proposed data center project in Henderson County did not meet those standards.

"The perspectives shared by residents, local leaders and stakeholders led us to conclude that the site under evaluation, in particular its close proximity to the rural residential community of Cedar Creek Lake, does not meet the higher standard we believe should guide data center development," data center company Diode wrote Henderson County officials.

Data center development across the country is receiving backlash due to concerns over water and power use. This project is one of the first in the state to fall out due to the new expectations and many are expected to follow.