Wire · regulatory
Firm pulls data center plans in E. Texas
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Fusion42 · 25 July 2026 · Fusion42 review
Texas governor Greg Abbott's June directive requiring data centers to offset residential power costs, fund their own infrastructure, add net capacity, use water-efficient cooling, and respect community setbacks has prompted Diode to withdraw its planned facility near Cedar Creek Lake in Henderson County. Abbott signalled intent to codify these standards in legislation and review sales tax exemptions for data centers.
This Wire brief sits within Fusion42's coverage of Cloud Infrastructure, and 2 sources have reported it.
◆ ◆ The Wire takeaway
If you're building data centre infrastructure in Texas or selling to data centre operators, Abbott just raised the bar on interconnection cost allocation and net capacity addition—and Diode's withdrawal proves it sticks. The sales tax exemption you thought was locked in is now on the chopping block.
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2 sources · 25 Jul 2026
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