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
National FFA President Trey Myers shares the significance of Give FFA Day, its role in supporting student growth, and how communities can join the celebration to make a difference for future agricultural leaders.
The Ranger Road Fire is fully contained after burning nearly 300,000 acres. Ranchers face significant cattle and fence losses, with recovery efforts underway.
National FFA Organization CEO Scott Stump shares the importance of Give FFA Day, how contributions support students, and why today is an opportunity for everyone to help invest in the future of agriculture.
USDA Farmer Bridge Assistance payments could begin this weekend as producers face tight margins, shifting acreage expectations, cattle herd contraction, and growing pressure for a stronger farm safety net.
Strong export demand supports barge markets, but weather risks remain.
Policy awareness is becoming part of everyday risk management.

LATEST STORIES BY THIS AUTHOR:

Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
Canada’s new voluntary Grocery Sector Code of Conduct will take effect on Jan. 1, a goodwill effort to promote fairness and transparency between retailers and support farms that sell directly to stores.
With record grain harvests and rising global ethanol demand, leaders across the ag and energy sectors are pushing for year-round E15 sales to mitigate the strain on grain trade.
Pork producers warn that proposed definitions of “ultra-processed” food in guidelines from the “Make America Healthy Again” plan could negatively impact industry-standard bacon, sausage, and feed practices.
Concerns over Chronic Wasting Disease are fueling a long-standing legal battle between Minnesota regulators and deer farmers. The case could soon reach the state’s Supreme Court with broader implications for agriculture.
The National Cattlemen’s Beef Association (NCBA) and Public Lands Council (PLC) are praising the passage of a bill to delist gray wolves as an endangered species by the U.S. House last week.
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.