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
Corn export demand remains supportive, but weak pork and rice sales show uneven global demand trends.
Rising poultry supply is pressuring prices despite steady demand.
Kansas row crop farmer Brad Keeler joins us to discuss drought conditions, planting decisions, input costs, and overall farmer sentiment in his region.
AFBF Economist Danny Munch joined us to discuss snowpack levels in the Colorado River Basin, water supply concerns, and the potential impact on agricultural production.
Congressman Gary Palmer of Alabama joined us to discuss federal overreach, transparency efforts, and legislative solutions impacting agriculture on this week’s Champions of Rural America.
Donald Chase of Chase Farms joined us to discuss drought conditions, planting progress, input costs, and the outlook for Georgia agriculture.

LATEST STORIES BY THIS AUTHOR:

The massive Morill wildfire left Nebraska ranchers facing major losses, as relief funds and federal aid step in to support recovery efforts.
Led by Sen. Rand Paul, lawmakers aim to prevent a November federal hemp ban, advocating for state control as farmers face planting uncertainties.
U.S. Rep. Dusty Johnson of South Dakota joined us to discuss rising input costs, fertilizer transparency efforts, and the role of trade in supporting farmer profitability.
U.S. Secretary of Agriculture Brooke Rollins joined us to discuss fertilizer markets, domestic supply efforts, trade priorities, and ongoing policy work aimed at stabilizing costs for U.S. farmers.
Louisiana State University Professor Shelly Pate Kerns says a late freeze forced widespread replanting of some crops across the state.
Strong demand for U.S. beef in Mexico is boosting exports, with buyers seeking both variety meats and high-quality cuts like Prime and Choice ribeye.
Agriculture Shows
RFD-TV has partnered with a handful of agricultural social media influencers whom we have dubbed The New Crop. These folks have taken to the internet to tell their stories and to raise awareness of where our food comes from and all that goes into feeding the world population.
The goal of “Where the Food Comes From” is as simple as its name implies — host Chip Carter takes you along on the journey of where our food comes from — and we don’t just mean to the supermarket (though that’s part of the big picture!). But beyond where it comes from, how it gets there, and all the links in the chain that make that happen.
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.
Tara Beaver Coronado (formerly known as Beaver Vineyards) is a farmer in Northern California. She raises grain crops with her dad. Tara planted her very first vineyard in 2018. Her channel is centered around her daily life on the farm, as well as promoting the diversity and scale of California agriculture.