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
Farm CPA Paul Neiffer discusses the status of USDA disaster aid, including delays to Stage 2 of the SDRP program, and what farmers should watch for as lawmakers negotiate an end to the government shutdown.
Taryn Fischels, Product Marketing Manager for Precision Upgrades at John Deere, joins us to share a sneak peek of her chat with FarmHER’s Kirbe Schnoor on the Dirt Diaries podcast.
U.S. Senator Deb Fischer (R-NE) discusses the USDA’s new cattle plan, ethanol policy, and the broader challenges ahead for rural America.
Australia’s expanding harvest and global oversupply are keeping wheat and barley prices capped, though canola markets may hold firmer on shifting oilseed demand.
Expanding bioethanol use strengthens rural economies, supports farm markets, and positions U.S. agriculture at the center of global low-carbon trade.
Elizabeth Strom with the American Society of Farm Managers & Rural Appraisers (ASFMRA) joined us to share the latest on harvest progress and market activity in her area.
Brooks York with Agri-Sompo joined us to discuss this year’s harvest price calculations and what they could mean for producers nationwide.

LATEST STORIES BY THIS AUTHOR:

Longtime MLF pro angler Fred “Boom Boom” Roumbanis shares how he and Jeff Sprague of Team YETI are preparing for the Team Series Summit Cup.
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
U.S. Trade officials announced new deals with El Salvador, Guatemala, Ecuador, and Argentina, as well as a steep reduction in tariffs on Swiss imports.
China’s cost advantage with Brazilian soybeans and vague public messaging leave U.S. export prospects uncertain heading into winter.
Expanded aerial capacity strengthens the U.S.–Mexico buffer against screwworm, providing cattle producers with stronger protection heading into winter and reducing risk to herds along the southern tier.
AFBF economist Faith Parum breaks down the potential impact of the proposed policy change to allow year-round sales of E15 biofuel.
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.