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
ARC/PLC, marketing loans, and crop insurance each matter at different points in the price cycle — and the new Farm Bill strengthens the balance among them.
Kate Walker has the story, highlighting how students are learning to protect and preserve natural resources while gaining valuable technical and teamwork skills.
The Summit Cup is the fourth and final event in the Major League Fishing Team Series. Catch the action live on RFD-TV, starting on Sunday, November 16.
Experts highlight the importance of monitoring insecticide resistance in crops and improving disease traceability at livestock shows through RFID technology.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.

LATEST STORIES BY THIS AUTHOR:

California rancher and former NCBA President Kevin Kester joined House Republicans on Tuesday to tout provisions in the Big, Beautiful Bill that support family ranches.
The EPA proposal laid out two options: fully reallocate all exempted volumes to the 2026–2027 standards, or reallocate half.
The Fertilizer Research Act, reintroduced by Sens. Grassley, Ernst, and Baldwin, would direct the USDA to study and publish public reports on competition and pricing trends in the fertilizer market.
Allowing year-round sales of E15 nationally could deliver billions in economic gains, according to a new study from the Renewable Fuels Association and National Corn Growers Association.
U.S. aquaculture may gain competitive ground as harmful subsidies are phased out abroad, but producers should monitor shifts in import supply chains and trade enforcement closely.
Producers may need to prepare for margin pressure in livestock feeding, while dairy farmers could benefit from stronger product demand.
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.