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
Illinois Pork Producers Association’s Jennifer Tirey recaps the World Pork Expo, key issues facing pork producers, and efforts to restore pork options in Chicago Public Schools.
OOIDA’s Lewie Pugh discusses a new bipartisan surface transportation bill, industry efforts to address regulatory concerns, investments in truck parking and freight infrastructure, and the outlook for transportation policy.
USDA confirmed the latest cases involve a calf in La Salle County and a dog in Andrews County
Texas Tech’s Dr. Jennifer Koziol discusses the latest New World screwworm cases in Texas, ongoing response efforts, and how livestock biosecurity can prevent the pest’s spread.
Corn ethanol demand and stronger oilseed processing continue supporting domestic markets for crop producers.
The Washington State Tree Fruit Association says crop quality looks promising despite ongoing drought conditions.

LATEST STORIES BY THIS AUTHOR:

Allendale analysts say lower hog production has yet to generate the typical seasonal price movement.
Lewis Williamson with HTS Commodities discusses late-season planting progress, market fundamentals heading into summer, and the influence of biofuel policy on grain demand.
New livestock pest research in Texas could strengthen tools protecting cattle health, movement, and ranch profitability.
Avocado growers and buyers face sharp price swings when Mexican supply changes faster than alternative sources can respond.
Corn farmers and ethanol groups are urging Senate action on E-15 legislation while grain basis values strengthen in eastern states.