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As bipartisan backlash grows, developer cancels planned data center project in East Texas
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Fusion42 · 25 July 2026 · Fusion42 review
Texas developer Diode has withdrawn plans for a data center near Cedar Creek Lake in Henderson County following bipartisan backlash and Governor Abbott's directive requiring data centre operators to pay for their own power infrastructure and reduce water consumption.
This Wire brief sits within Fusion42's coverage of Cloud Infrastructure, and 2 sources have reported it.
◆ ◆ The Wire takeaway
If you're building a data centre in Texas, the cost structure just changed — you now pay for your own power grid upgrades and water management instead of shifting those costs to local utilities. One project already died on those terms; expect lenders and customers to demand the same terms elsewhere.
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2 sources · 25 Jul 2026
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