Diode Ventures Data Center, Trinidad, Texas

Diode Ventures withdrew its plan for a data center near Trinidad in Henderson County, Texas, on July 22, 2026, after months of opposition from lake residents and pressure from Governor Greg Abbott. The company told the Texas Tribune it had decided not to advance the site beyond preliminary planning. Henderson County Commissioner Wendy Spivey said the site sat in the middle of a developed subdivision with hundreds of homes around it.

The Fort Worth Star-Telegram reported the site was expected to take 12 years to build out and use 5 million gallons of lake water a day by its fifth year. Cedar Creek Lake supplies water to the Fort Worth area, and lake levels had been low this year with little rain. Save Cedar Creek Lake, a volunteer coalition formed in early 2026, gathered thousands of signatures demanding the project be dropped and stronger state rules for data centers.

"I'm pro technology, but not at the expense of we, the people," resident Stacy Farmer said after the withdrawal. Governor Abbott said in a statement: "Data centers that want to do business in Texas must meet a clear standard. This project did not." Spivey said she did not think the fight was over, since the landowners were still looking for ways to sell or use the land.

"There's not much the county can do," Spivey said. "We don't have zoning rules and regulations." Henderson County has signed a resolution asking state lawmakers for authority to regulate data centers, and Abbott has recommended the 2027 Legislature require closed loop water systems, make data centers pay their own grid costs, and end their tax breaks.