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.

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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.

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