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
Tariff refunds are underway, potentially returning billions to importers, as agriculture groups push for a larger role in trade policy and investigations.
Patrick De Haan with GasBuddy joined us to discuss diesel price volatility and what farmers can expect as geopolitical tensions continue to impact energy markets.
Hemp growth is driven by floral demand, with mixed returns elsewhere.
Farm programs remain small but politically easier to expand.
Export funding aims to strengthen global demand for U.S. commodities.
Dairy markets are improving, but large supplies still cap the upside.

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:

Rising global supplies may cap soybean price strength, while sorghum prices hinge heavily on China’s export demand.
AFBF Economist Dr. Faith Parum break down new survey findings on fertilizer affordability and producer sentiment heading into the 2026 growing season.
Sen. Roger Marshall joined us to discuss rising input costs, farm support efforts, and legislation aimed at strengthening domestic fertilizer supply.
Charly Cummings with Superior Livestock Auction joined us to discuss today’s cattle offering, market demand, and what producers should watch as they plan upcoming sales.
David Fisher with the American Lamb Board joined us to discuss a new sustainability program designed to boost producer profitability while supporting stewardship practices.
David Gruchot with USDA APHIS joined us to discuss the growing threat of invasive pests and the steps individuals can take to help protect U.S. agriculture.
Agriculture Shows
RFD-TV has partnered with a handful of agricultural social media influencers whom we have dubbed The New Crop. These folks have taken to the internet to tell their stories and to raise awareness of where our food comes from and all that goes into feeding the world population.
The goal of “Where the Food Comes From” is as simple as its name implies — host Chip Carter takes you along on the journey of where our food comes from — and we don’t just mean to the supermarket (though that’s part of the big picture!). But beyond where it comes from, how it gets there, and all the links in the chain that make that happen.
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.
Tara Beaver Coronado (formerly known as Beaver Vineyards) is a farmer in Northern California. She raises grain crops with her dad. Tara planted her very first vineyard in 2018. Her channel is centered around her daily life on the farm, as well as promoting the diversity and scale of California agriculture.