CoBank: Why the AI Data Center Boom Could Help Rural Communities Thrive

Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.

DENVER, Colo. (RFD-TV) — Rapid growth in Artificial Intelligence (AI) is fueling a surge in data center investment, driving increased demand for land, power, and infrastructure. Rural America is emerging as an attractive destination for these projects, offering available space, access to energy, and the potential for significant economic benefits.

Jeff Johnston, digital infrastructure economist with CoBank’s Knowledge Exchange, joined us on Friday’s Market Day Report to discuss why data center developers are increasingly looking to rural communities and what that trend could mean for local economies.

In an interview with RFD-TV News, Johnston explained the factors driving data center operators to rural areas, including lower land costs, proximity to energy resources, and fewer congestion challenges than in urban markets. He also highlighted findings from a recent CoBank report that outlines the scale of economic opportunity data centers can bring to rural regions, from construction activity to long-term tax revenue and infrastructure investment. He also addressed concerns raised in some communities where proposed data center projects have faced resistance. He discussed potential risks rural areas should consider, including power demand, water use, and community fit, emphasizing the importance of careful planning and local engagement.

Finally, Johnson shared his perspective on whether rural residents should be cautious about hosting data centers. He noted that while skepticism is natural, well-structured projects can provide meaningful benefits when aligned with local priorities.

Related Stories
Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
With record grain harvests and rising global ethanol demand, leaders across the ag and energy sectors are pushing for year-round E15 sales to mitigate the strain on grain trade.
Small, locally focused wineries are finding resilience through direct sales and regional loyalty rather than scale alone.
Concerns over Chronic Wasting Disease are fueling a long-standing legal battle between Minnesota regulators and deer farmers. The case could soon reach the state’s Supreme Court with broader implications for agriculture.
The National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) are praising the passage of a bill to delist gray wolves as an endangered species by the U.S. House last week.
Recent USDA export sales data show China has been active in the U.S. market, but analysts tell RFD-TV News that the timing is a key clue.

LATEST STORIES BY THIS AUTHOR:

Global trade teams and summit discussions highlight expanding opportunities for U.S. corn and ethanol exports as nations explore renewable fuel options and reduced-carbon energy pathways.
The Louisiana cotton crop is the smallest on record, but strong yields are a silver lining. LSU AgCenter’s Craig Gautreaux reports from northeast Louisiana.
Soybean farmer and Arkansas Lt. Gov. Leslie Rutledge highlights why the U.S. trade standoff with China is especially critical for Arkansas producers.
NEFB President Mark McHargue provides an update from the Husker State, where farmers are working hard to bring in one of the largest harvests in recent years.
Todd Miller, CEO of Head Honchos, shares about his business offering to ease agricultural labor shortages.
The National FFA Organization hosts the Washington Leadership Conference, where thousands of FFA members gather to learn how to be change makers in their communities.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.