Developer Withdraws Proposed Cedar Creek Lake Data Center

Overview

• Diode Ventures notified Henderson County on July 22–23 that it will not pursue the Key Ranch site near Cedar Creek Lake after evaluating the property and talking with residents and officials.
• Records show the company had sought permission to withdraw as much as 5 million gallons of water per day from the lake with the potential to scale up to 20 million gallons per day over time.
• Diode said site due diligence and community feedback drove the decision, and Governor Greg Abbott praised the withdrawal while citing his June directives that set new expectations for data-center power, water and community impacts.
• Local activists and the Henderson County Commissioners Court, which earlier passed a nonbinding resolution opposing high-water data centers, credited community mobilization for the outcome but warned other developers could try different sites.
• The cancellation highlights a policy gap: state officials are pushing new rules and reporting requirements but counties have limited legal power to block centers, leaving future siting disputes to regulators and the 2027 Legislature.