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
AFBF Economist Danny Munch breaks down a new Farm Bureau analysis showing that producers now earn less than 6 cents of every food dollar, as farm input costs continue to squeeze margins.
Houston competitor Ainslea Hayes shares what it takes to compete in the ring and carry on a family legacy
Productivity gains are supporting supply despite limited herd expansion.
Elena Chavez with Halter provided insight into the company’s virtual fencing technology, its adoption in the U.S., and the impact of recent funding on ranching operations.
Young exhibitors balance school and months of preparation as they compete at one of Texas’s largest livestock events.
Brooks York with AgriSompo addresses how current market conditions and risk management are impacted by volatility in the Middle East, and considerations for farmers in the spring planting season.

LATEST STORIES BY THIS AUTHOR:

Roger McEowen with the Washburn School of Law reviews key highlights from the House Agriculture Committee’s latest farm bill proposal.
Ethanol output is improving, but weak domestic demand and export headwinds temper optimism about corn demand. Renewable Fuels Association President & CEO Geoff Cooper discusses the latest developments on Federal approval of year-round E15.
The National Farm Machinery Show is underway in Louisville, Kentucky, bringing together the latest in agricultural equipment, technology, and innovation. Here are some highlights from the trade show floor so far!
Ag Committee Chairman Rep. Glenn “GT” Thompson has referred to the proposal as “Farm Bill 2.0.”
RealAg Radio host Shaun Haney talks about the U.S. House’s latest vote to roll back tariffs on Canada and the ongoing discussions surrounding North American trade.
Farm legal expert Roger McEowen discusses the EPA’s rescission of the 2009 endangerment finding on greenhouse gases and what it could mean for agriculture and rural America.
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.