AI is causing a supply-demand imbalance in the energy sector

Rural America’s broadband use is surging as more precision ag tools come online, but that digital growth has a price. Data centers are moving into small towns and energy supplies are feeling the strain.

“If you look at some of the studies that have been done and the estimates around energy consumption, we are headed for a supply-demand imbalance in the energy complex because of AI in the not-too-distant future,” said Jeff Johnston, lead economist for digital infrastructure, CoBank.

Johnston says while there might be a lot of challenges ahead, he calls the whole process a big opportunity for rural America.

Related Stories
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.
Texas Commissioner of Agriculture Sid Miller joined us to discuss data center expansion, farmland preservation, rural economic impacts, and imminent cattle biosecurity concerns affecting agriculture today.
The Pennsylvania Farm Show continues through Saturday, wrapping up another successful year of celebrating agriculture in the Commonwealth.
Shaun Haney joined us to discuss Canada’s new trade agreement with China, the potential impact on farmers and exporters, and what it could mean for U.S.–Canada trade relations going forward.
The proposal signals a renewed push to offset tariff-driven losses, stabilize nutrition programs, and broaden eligibility for farm aid, though its path forward will depend on congressional negotiations.
The application deadline is March 8, 2026. The 1890 National Scholars Program aims to encourage students at 1890 land-grant universities to pursue careers in food, agriculture, and natural resource sciences.

LATEST STORIES BY THIS AUTHOR:

Rep. Erin Houchin of Indiana discusses how the Affordable Homes Act will benefit rural communities, and her broader efforts to improve access to affordable housing.
Iowa Secretary of Agriculture Mike Naig discusses market conditions, policy priorities, and his outlook for agriculture moving forward.
NEFB President Mark McHargue recaps the Farm Bureau’s Annual Convention, producer sentiment in Nebraska, and discusses key issues facing agriculture.
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
House Agriculture Committee Democrats are calling for action on the Farm and Family Relief Act, warning that proposed SNAP cost shifts to states could reduce food assistance for low-income families amid ongoing tariffs and trade disruptions that continue to strain U.S. farmers.
Expanded school access to whole milk provides modest but reliable demand support for U.S. dairy producers.