Texas Governor Greg Abbott Blocks Diode Data Center Near Cedar Creek Lake

Governor Greg Abbott said the proposed Diode data center near Cedar Creek Lake in Henderson County, Texas, failed to meet state standards for protecting local communities, natural resources and the power grid. The semiconductor firm Diode withdrew its plans after discussions with the governor’s office, state legislators and county officials.

Abbott highlighted new expectations for data centers, including reducing residential electricity costs, funding their own electric infrastructure, adding generation capacity, using water‑efficient cooling, and limiting noise and other impacts on nearby neighborhoods. He praised Diode’s decision and signaled plans for legislation requiring large data centers to report annual electricity and water usage and to remove certain tax exemptions. Local officials, including Henderson County Precinct 1 Commissioner Wendy Spivey, thanked residents for their opposition that helped halt the project.