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
Dr. Jeffrey Gold, President of the University of Nebraska, joined RFD-TV to discuss how seasonal stress and mental health concerns can make it more challenging to get a restful night’s sleep
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
FarmHER Erin Cumings shares how Nationwide’s “Every STEP Counts” helps farm and agribusiness owners prioritize safety.
Shaun Haney, Host of RealAg Radio, discusses President Trump’s move to halt trade talks with Canada and Mexico over a commercial about tariffs launched by the Government of Ontario.
The President’s trip to Asia this week follows a trade mission by the Iowa Soybean Association. Farmers say they were reminded that U.S. soybeans have an international reputation that can be easy to take for granted here at home.
The U.S.-Japan tech pact signals long-term investment in bio-innovation, connectivity, and secure supply chains — all of which can strengthen rural manufacturing, ag exports, and digital infrastructure critical to the next generation of farm productivity.
She saw him play besides greats like Dolly Parton, Bob Dylan, Conway Twitty, and more.
Harvest Marches on as River Logistics And Inputs Steer Bids

LATEST STORIES BY THIS AUTHOR:

China still has a long way to go before it meets its commitment to buy 12 million metric tons of U.S. soybeans this year.
The new WOTUS proposal narrows federal jurisdiction, restores key agricultural exclusions, and gives farmers clearer permitting rules after years of regulatory uncertainty.
UMN Extension’s Emily Krekelberg outlines today’s top farm stressors, key signs of mental health distress in rural communities, and the resources available for support.
National Pork Board Chief Sustainability Officer Jamie Burr shares a closer look at the Pork Checkoff’s Pork Cares Farm Impact Report, a research program to increase trust in the pork supply chain.
Brooks York with Agrisompo joined us on Monday’s Market Day Report with some guidance on how producers can navigate their crop insurance claims for unsold grain crops.
For many farm businesses, property taxes on business assets have become a significant and highly visible expense, threatening liquidity, discouraging investment, and creating a disproportionate burden when compared to other industries.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.