Proposed Texas data center plans scrapped for not meeting Gov. Abbott’s standards

AUSTIN (KVIA) -- Thursday, Texas Governor Greg Abbott announced a proposed data center in Texas withdrew its plans after failing to meet the governor's directives or community expectations.

Diode Ventures, the developer for a proposed data center originally planned for Henderson County, sent a notice to county officials saying it didn't meet expectations. The county is southeast of the Dallas-Fort Worth area.

Gov. Abbott set expectations in a June 10 directive to the Public Utilities Commission and the Electric Reliability Council of Texas. He said:

• Data centers' interconnections should result in reduced electric bills for residents.
• Data centers should pay for their electric costs so residents don't have to.
• Data centers should contribute to Texas' electric capacity, not just its demand.
• Data centers should have water-efficient technology so they don't drain local water resources.
• Data centers should reduce impact on local communities by using best practices like noise reduction.

The governor said he will seek legislation to codify his expectations.

"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," the governor said ina statement.

Additionally, Gov. Abbott said he aims to require data centers to report its annual electricity and water usage to the PUC. He also wants to repeal sales tax exemptions and other outdated or unnecessary incentives for data centers.

Diode is a Kansas-based developer. It proposed a data center near Cedar Creek Reservoir, according to Gov. Abbott.