A proposed data center facility in East Texas has submitted an application to draw significant amounts of water from the Cedar Creek Reservoir, a source that provides the majority of raw water for Fort Worth and surrounding communities. The project, led by Diode Ventures, requires permits from the Tarrant Regional Water District and the East Texas Rural Water Utility District No. 1.
The Tarrant Regional Water District supplies between 80% and 85% of its raw water to customers in Fort Worth, Arlington, and 68 other North Texas cities from two East Texas lakes: Cedar Creek and Richland Chambers Reservoir. The district currently pulls up to 170 million gallons daily from Cedar Creek and 150 million gallons from Richland Chambers. In Fort Worth, residents and businesses consume an average of 216 million gallons per day.
Diode Ventures project development manager Khalid Jbara stated in December 2025 that the facility would require between 1 million and 5 million gallons of water per day. However, a spokesperson for the company noted that the upper limit of that range does not guarantee actual usage. Records indicate that meeting these demands would at least double the capacity of the local East Texas utility district, which projected pumping just under 1.5 million gallons daily in 2025 to serve approximately 22,400 residents and commercial users.
The East Texas Rural Water Utility District No. 1 has not issued a contract because Diode’s application remains incomplete. Utility records show that the district lacks the current capacity to meet the facility’s water cooling needs without expanding or upgrading pump stations. In July 2025, general manager Kenneth Malin expressed concern to Diode regarding the financial benefits for the district, noting that a pipeline transmitting only raw water for a single development might not be appealing compared to projects providing treated potable water.
The proposal has drawn attention from residents near Cedar Creek Lake, where drought conditions have led to moderate water shortages and lower water levels. Tool resident Casey Watson reported that many boats are dry-docked this year. Cook, another local resident, criticized the prioritization of industrial facilities over citizens, stating that taxpayers should be concerned about the resource demands.
