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
AEM’s Kip Eideberg joins us to discuss tariff policy changes, their potential impact on agricultural equipment costs, and the outlook for the farm machinery sector.
Texas A&M economist David Anderson says sharp declines in lamb and mutton production are helping support higher prices.
USDA Undersecretary for Trade Luke Lindberg says expanding export demand is creating new opportunities for U.S. ethanol producers.
More than 500 U.S. counties currently face shortages of large animal veterinarians, according to USDA.
The update comes as congressional leaders continue working toward passage of a new Farm Bill.
Cover crops may improve soil and reduce input needs over time, but producers should budget carefully before expanding acreage.

LATEST STORIES BY THIS AUTHOR:

USDA Secretary Brooke Rollins visits Arizona cotton producers as rising fuel, fertilizer, and fuel and fertilizer costs continue to pressure farm margins.
Fred Nichols with Huma joins us to break down “just in time” fertilizer applications, a growing trend in modern nutrient management as input costs continue to pressure farmers.
RealAg Radio host Shaun Haney says producers should continue to watch tariff negotiations, market access, and the possibility of a more transactional trade relationship with China.
RFD News Farm Legal Expert Roger McEowen discussed red flags landowners should watch for during property transactions.
ASFMRA’s Howard Halderman says several economic and policy issues are continuing to influence the farmland market.