A major data center project in East Texas near Cedar Creek Reservoir has been scrapped after Diode Ventures couldn’t meet Governor Greg Abbott’s new development standards. The proposed facility, which would have consumed five million gallons of lake water daily and disrupted a residential area, sparked fierce local opposition. Community groups rallied, petitions were signed, and officials pushed back — all contributing to the company’s decision to walk away. While Diode Ventures remains committed to responsible development, the withdrawal signals a growing trend: Texas is tightening the reins on rural data center projects, empowering local communities to protect their water and land. The fight isn’t over — landowners are still eyeing the site, and another company might step in — but this episode underscores a statewide shift toward accountability and community-first development.
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