AI-Driven Data Center Growth Sparks Debate Across Rural America on Risk vs. Reward

CoBank Knowledge Exchange’s Jeff Johnston shares the group’s positive perspective on expanding data centers into rural areas and weighs the risks and rewards for those communities.

DENVER, Colo. (RFD NEWS) — Artificial intelligence is driving a surge in data center expansion, creating increased demand for land and power. Many developers are now looking to rural America as an ideal location, citing available space and access to energy. While some view this trend as an economic opportunity for rural communities, others have raised concerns about its potential impact on farmland and ranchland.

CoBank digital infrastructure economist Jeff Johnston joined RFD NEWS to discuss how this issue is being viewed in rural communities.

In the interview, Johnston addressed potential negatives being raised by rural residents, including concerns that data center development could threaten agricultural land and change long-standing land use in farming and ranching areas. He also discussed whether data center developers are beginning to respond to community concerns and if those efforts could give rural communities added bargaining power as discussions move forward.

Johnston outlined some of the optimism coming from rural communities that see data centers as a way to support schools, towns, and local economies. The conversation also included reports circulating on social media suggesting data centers may be offering higher per-acre payments for farmland than solar and wind projects. Johnston shared insight into what is generally being offered.

To close, Johnston provided his outlook as discussions around data center development continue to evolve in the year ahead.

Related Stories
Here are the top agriculture news headlines from RFD-TV News today (Thursday, Feb. 27, 2025) and the top trending stories on RFD-TV News.
RFD-TV Ag Law & Tax Expert Roger McEowen outlines the top ten agricultural law and taxation topics from 2024 that will impact farmers and ranchers the most in 2025.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

The Interior Department is proposing to repeal the Bureau of Land Management’s Public Lands Rule. This move would make huge strides to empower local decision-making and restore balance between conservation and protecting rural livelihoods tied to these public lands.
Mother-daughter RanchHER duo, Lyn and Sherrie Ray, joined us on Wednesday’s Market Day Report for a sneak peek at tonight’s brand new episode of FarmHER + RanchHER.
With new renewable volume obligations announced this year, the Iowa Soybean Association says they’ll be vital to a farmer’s bottom line.
The 2022 Census of Agriculture revealed a more than 30% decrease in U.S. dairy farms since 2017. The shrinking industry is now uniting to advocate for itself while also adopting technology to reduce operational strain.
The September WASDE report comes out on Friday at Noon ET. As always, we’ll bring you those numbers right here on Market Day Report along with our expert
Heritage Cup Begins Sunday, September 14th at 10 AM ET
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.