Data Center Developer Withdraws East Texas Project After Failing To Meet Abbott’s Standards

A proposed data center development near Cedar Creek Lake in East Texas has been withdrawn after Gov. Greg Abbott said the project failed to meet the state’s expectations for protecting local communities, natural resources, and the electric grid.

Abbott “Data centers that want to do business in Texas must meet a clear standard. This project did not,” Abbott said in a statement.

In a letter sent to Henderson County Judge Wade McKinney and county commissioners, Diode co-presidents Rachel Attebery and Josh Johnson said discussions with state officials, local leaders, and area residents led the company to conclude the proposed site near Cedar Creek Lake was unsuitable.

“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,” the letter states.

As a result, the company said it “will not pursue land development at this location” and instead will focus on future projects that better align with responsible development practices.

Diode also reaffirmed its support for water-efficient technologies, including closed-loop and air-cooled cooling systems, and pledged to engage communities early during future site evaluations.

Abbott Outlines New Expectations

The withdrawal Under the governor’s guidance, future data center projects

Texas has The proposed Henderson County facility had faced concerns from residents over its proximity to Cedar Creek Lake and surrounding neighborhoods.

Abbott “Governor Abbott will continue to advance policies that ensure data center growth does not come at the expense of Texas families or rural communities,” the governor’s office said.