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
Students say the program builds confidence, teamwork and a sense of purpose.
Roger McEowen breaks down the EPA’s updated dicamba regulations and shares what farmers need to do to remain compliant under the new rules this growing season.
Jarrod Hardke with the University of Arkansas break down extreme drought conditions, shifting planting decisions, and the impact of rising input costs on Arkansas agriculture this season.
Louisiana farmers say high water levels routinely threaten crops, highlighting the need for critical infrastructure and sustainability efforts in the Bayou.
The Farm Monitor says Georgia farmers highlighted profitability and labor challenges during a Farm Bureau event with USDA Deputy Secretary Stephen Vaden.
Effort aims to reduce wildfire risk in Western Colorado communities

LATEST STORIES BY THIS AUTHOR:

Lewie Pugh, with the Owner-Operator Independent Drivers Association, discusses EPA DEF system changes and what they mean for the supply chain and fuel costs.
JBS says the plant is now operating at full capacity as plant workers return to work.
Rising costs and prices are shifting acreage toward soybeans. Most fertilizer prices are up double digits from this time last year, with Urea seeing the largest gains.
A Nebraska rancher says his land may not support cattle this year after 2,000 acres were burned in recent devastating wildfires across the state.
Brandy Carroll with the Arkansas Farm Bureau shares an update on planting conditions and what producers are facing this season.
Aris Georgiadis with Dairy Management Inc. joined us to discuss the “Dairy Does More” campaign and how it is working to boost demand for dairy.
Agriculture Shows
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.
RFD Network is always creating new ways for rural America to educate and to be educated. RURAL AMERICA LIVE, the network’s longest-running self-produced program, is certainly no exception.