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
Wheat Harvest Expands As Drought Still Pressures Pastures
AgriSompo’s Brooks York discusses price protection levels, recent market declines, and risk management strategies for producers.
Rob and Emily Sharkey discuss new episodes, finding guests and what keeps the show going.
Riders will retrace more than 1,900 miles of the historic Pony Express route.

LATEST STORIES BY THIS AUTHOR:

North Dakota State University’s Dr. Shawn Arita joins us to break down new research on U.S. ag export losses tied to retaliatory tariffs and what they signal for trade moving forward.
Soybean oil is already feeling the pressure.
USDA Secretary Brooke Rollins visits Arizona cotton producers as rising fuel, fertilizer, and fuel and fertilizer costs continue to pressure farm margins.
Fred Nichols with Huma joins us to break down “just in time” fertilizer applications, a growing trend in modern nutrient management as input costs continue to pressure farmers.
RealAg Radio host Shaun Haney says producers should continue to watch tariff negotiations, market access, and the possibility of a more transactional trade relationship with China.
RFD News Farm Legal Expert Roger McEowen discussed red flags landowners should watch for during property transactions.
Agriculture Shows
As the trusted voice of the U.S. cattle and beef industry, the National Cattlemen Beef Association strives to share timely, relevant news. NCBA’s “Cattlemen to Cattlemen” is the leading TV show for beef producers to receive cattle industry news, education, and information.
America’s Heartland brings positive, heartfelt stories about American agriculture to viewers in both urban and rural areas.
Hosted by Pam Minick, “The American Rancher” focuses on the people and places that make ranching an American lifestyle. This half-hour magazine format series features livestock producers and their ranches, animals, and ranching practices.
For the latest information on how to take your operation from good to great, tune into Ag PhD. The program includes a wide range of agronomic information from how to maximize your fertilizer program & tiling to stopping those yield-robbing insects and crop diseases and more.