A data center developer looking to pull millions of gallons of water daily from Cedar Creek Lake \u2014 one of two reservoirs that supply most of Fort Worth\u2019s water \u2014 has announced it is no longer considering the Henderson County site.\u00a0<\/p>\n
Henderson County commissioner Wendy Spivey took to social media Wednesday, where she\u00a0posted a letter from Diode Ventures.\u00a0<\/p>\n
Sent to Henderson County Judge Wade McKinney and county commissioners, the letter said that the site \u201cdoes not meet the higher standard we believe should guide data center development.\u201d<\/p>\n
The letter acknowledged that Gov. Greg Abbott ordered Texas data centers to be \u201cresponsible stewards\u201d of the natural resources, power infrastructure and communities.\u00a0<\/p>\n
\u201cDiode shares that expectation and is committed to meet or exceed state and local standards in our projects,\u201d the company wrote. \u201cThe 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\u201d doesn\u2019t meet the company\u2019s standard.<\/p>\n
According to email communication records obtained by the Fort Worth Report, the company \u2014 beginning in April 2025 \u2014 consulted with the West Cedar Creek Municipal Utility District about whether the agency could support Diode\u2019s water needs for the facility. Planned for a spot between the small towns of Trinidad and Tool on the west side of Cedar Creek Lake, the data center would have needed up to 5 million gallons of raw water a day, said Khalid Jbara, Diode Ventures project development manager\u00a0<\/p>\n
Records show the water utility pumped just under 1.5 million gallons of treated water a day in 2025 to serve 22,400 residents and commercial users.\u00a0<\/p>\n
The Tarrant Regional Water District, the entity that owns Cedar Creek Lake, pulls up to 170 million gallons of water a day from the reservoir to store in North Texas lakes and disperse across 70 cities.\u00a0<\/p>\n
Diode will explore opportunities to support Texas\u2019 growing infrastructure needs, the company wrote.\u00a0<\/p>\n
The letter said the company supports “responsible data center development,\u201d including water-efficient technologies, closed-loop cooling and air-cooled systems, and engagement with residents.<\/p>\n
\u201cData centers that want to do business in Texas must meet a clear standard,\u201d Abbott said in a July 23 news release<\/a>. \u201cThis project did not.\u201d<\/p>\n In June, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to enforce several standards including:<\/p>\n Requiring data centers to pay for all of their electric infrastructure costs to prevent financial impacts on residents. Abbott plans on seeking state law to formally implement these expectations, the news release stated.<\/p>\n \u201cAs with all sites we explore, Diode Ventures conducted due diligence on a potential data center development site in Henderson County,\u201d a company spokesperson said. \u201cDiode remains committed to responsible development, ensuring careful assessment of each site and moving forward with only those that align with infrastructure availability, community priorities and long-term project viability.\u201d<\/p>\n For months, Henderson County residents packed public meetings and formed an advocacy group to air their concerns about the company\u2019s potential water usage and lack of transparency regarding the project\u2019s details.\u00a0<\/p>\n Kenneth Malin, West Cedar Creek Municipal Utility District general manager, told Jbara that the agency would not support the company\u2019s project, after being asked to sign a non-disclosure agreement. Jbara also asked Malin if the utility\u2019s board directors would be willing to meet with the company before a scheduled public meeting.\u00a0<\/p>\n \u201cWe will not break the rules for any development to meet behind closed doors,\u201d Malin said.<\/p>\n Stacey Farmer, who lives next to the lake, said she took a few moments to celebrate Diode\u2019s canceled plans but cautioned there could be other data centers interested in the area.<\/p>\n \u201cIt is just one battle that we have won,\u201d Farmer said.\u00a0<\/p>\n Ashley Cook, an attorney and Henderson County property owner, said the number of data centers interested in developing along waterways is worrying.\u00a0<\/p>\n \u201cWe need to be watchful because there will continue to be projects and data centers, if not in the Henderson, Kaufman County area, certainly in Tarrant County,\u201d Cook said.\u201d<\/p>\n Cook said she and other residents will continue to advocate for the protection and stewardship of Cedar Creek Lake. That involves demanding lawmakers to enact legislation protecting landowners and natural resources throughout the state.\u00a0<\/p>\n Nicole Lopez is the environment reporter for the Fort Worth Report. Contact her at nicole.lopez@fortworthreport.org<\/a>.<\/p>\n The Report\u2019s environment coverage is supported by the Marilyn Brachman Hoffman Foundation.<\/p>\n
\nEnsuring that data centers build on the basis of the state\u2019s electric capacity, not just its demands.
\nRequiring all new data centers to use water-efficient technology such as closed-loop cooling systems.<\/p>\n