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A proposed data center in Henderson County, Texas, has withdrawn its plans to acquire land for its development.
On Thursday, Diode, a global semiconductor company, notified Henderson County officials that it will no longer pursue the land development near Cedar Creek Lake.
“Instead, we will focus on opportunities where we can support Texas’ growing infrastructure needs. We support practices that allow for responsible data center development, including the use of advanced water efficient technologies, like closed-loop and air-cooled systems, while engaging openly with communities from the beginning of the site exploration process,” the company’s notice states.
Diode officials said the decision came after recent conversations with Gov. Greg Abbott’s staff, state Rep. Cody Harris, Henderson County Commissioner Wendy Spivey, and other county officials. They also said local residents raised concerns about the proposed data center being located near the rural residential communities surrounding Cedar Creek Lake.
Earlier this month, Abbott directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to ensure that data centers’ interconnections reduce residential electricity costs, require developers to pay for all electric infrastructure without passing costs on to residential ratepayers, and have both the Public Utility Commission of Texas and the Electric Reliability Council of Texas review their existing authorities to identify additional actions that could protect Texas residents.
Abbott said Diode made the right decision by withdrawing the proposal.
“Data centers that want to do business in Texas must meet a clear standard. This project did not,” Abbott said.
“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.”
Spivey, the Henderson County Precinct 1 commissioner, also welcomed the decision in a Facebook post.
“I want to thank every resident who attended meetings, asked questions, researched the facts, signed petitions, wrote letters, sent emails, made phone calls, and spoke with courtesy and conviction. Your participation mattered,” said Spivey.
“I also appreciate Diode Ventures for taking the time to listen to our community’s concerns and for making the decision that this location was not the right fit for a large-scale data center.”
“From the very beginning, my position has been consistent: while Texas will continue to need infrastructure to support growth, this proposed location—surrounded by homes, families, and the Cedar Creek Lake community—was not an appropriate place for a project of this scale,” Spivey added.
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[ H/T The Daily Signal ]
