A proposed data center development near Cedar Creek Lake in East Texas has been withdrawn after Gov.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’s Standards

“Texas requires companies to put communities first, protect our natural resources and power grid, and respect the quality of life of our residents. 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,” said Gov. Abbott.

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.

Future Plans

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 also said he plans to seek legislation requiring large data centers to report annual electricity and water usage to the PUC and repeal sales tax exemptions and other incentives he described as outdated or unnecessary.

Original reporting: WBAP News/Talk (Dallas-Fort Worth) — read the source article.