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
“She has a plan and that plan is to support our farmers.”
“It’s a falsehood to call beef from another country ‘Product of the USA.’”
“When you’re a small family farm, security is often an afterthought, if a thought at all.”
“I don’t think we’re going to see cattle coming across the border at all because of that increase in their cases in Mexico.”

LATEST STORIES BY THIS AUTHOR:

Let’s meet an inspiring young farmer leading the Tennessee FFA this year, but now has his sights set on the National stage.
Cindy Kovar with AgriSafe joined us on Monday’s Market Day Report to talk about road safety and agriculture as we age.
USMEF CEO Dan Halstrom joined us on Monday’s Market Day Report for his analysis on the U.S.-Taiwan trade agreement, which includes big bucks for U.S. Beef.
Record U.S. sorghum crop faces weak demand as China slashes imports, while corn farmers warn of rising costs, shrinking margins, and global market pressures.
Fewer cattle on feed suggest smaller slaughter numbers this winter, which could support strong prices if beef demand holds firm.