Data Center Boom in Rural Texas Sparks Debate Over Agricultural Land Use

As data centers expand across Texas, experts and officials weigh economic benefits against concerns over farmland loss, water use, and impacts on agricultural land and rural communities.

WILLACY COUNTY, TEXAS (RFD NEWS) — Texas is quickly becoming a major hub for data center development, with large facilities expanding into rural, agriculture-heavy regions. While the projects bring technological and economic growth, they are also raising concerns about the long-term impact on farmland and rural communities.

A new wind-powered data center campus under construction in Willacy County highlights the trend. Though still years from completion, the project reflects growing demand for large-scale digital infrastructure in rural areas.

Gilbert Torres, Assistant Director with Willacy County EMS, explained the basic function of these facilities: “It is a station or a facility that is set up to be able to handle processing for data networks. So it is able to answer those questions that we ask on the internet and promptly answer them,” Torres said.

He added that increasing use of artificial intelligence and cloud computing is driving rapid expansion.

“The more questions we ask, the more computer systems that have to be set up, and the larger the facilities are. You’re starting to see them expand across the country for that reason,” he said.

However, the expansion often requires large amounts of land, leading to competition with agriculture in rural regions — particularly in West Texas. According to a new study by JLL, Texas could overtake Virginia as the largest global data center market by 2030 due to plentiful land and energy.

“That’s correct. And the reason for that is that they need large open spaces and the capability to expand their locations. They need to set up the networks connected to each other. And so they need to have large amounts of acreage available to do that for the expansion,” Torres said.

The growth of these facilities has prompted questions about their impact on agriculture and natural resources. RFD-TV Correspondent Frank McCaffrey noted the tension between technological expansion and farmland preservation.

Texas A&M AgriLife Extension economist Manuel Garcia says the issue is not simple, and outcomes depend on how resources are managed.

“The answer depends on where the data centers are located, how they use their resources, the water, ag, electricity. And I think as economists, we always look this trade-off, the benefit and cost. And if the benefits overweigh the cost, probably something good,” Garcia said.

He also noted that limited research and information can lead to uncertainty and public concern.

“But I think there’s always not a lot of information, a lot of studies on those topics, which can create uncertainty. And the lack of knowledge can create fear in the adoption or the implementation of this facility, like the data centers,” he said.

As Texas continues to attract large-scale tech infrastructure, communities across rural areas are left weighing economic opportunity against the preservation of agricultural land and resources.

Frank McCaffrey reporting for RFD News.

Related Stories
Chris Bliley with Growth Energy discusses ongoing concerns about U.S. ethanol exports and the expansion of market access promised under the Phase One deal between the U.S. and China.
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
Dr. Ashley Johnson, with the National Pork Producers Council (NPPC), joins us to share the sector’s perspective on new FDA initiatives targeting ultra-processed foods.
While there has been an increase in outbreaks of Highly Pathogenic Avian Influenza (HPAI) this migration season, the CDC says the public health risk is low.
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.

RFD NEWS Correspondent Frank McCaffrey covers news from Texas, in the US-Mexico border region. He has provided in-depth coverage of immigration, the 2021 Texas freeze, the arrival of the New World screwworm, and Mexico’s water debt owed under a 1944 treaty.

LATEST STORIES BY THIS AUTHOR:

With China halting U.S. soybean purchases and talks tied to broader strategic issues, growers face renewed export uncertainty.
Soybean farmer and Arkansas Lt. Gov. Leslie Rutledge highlights why the U.S. trade standoff with China is especially critical for Arkansas producers.
NEFB President Mark McHargue provides an update from the Husker State, where farmers are working hard to bring in one of the largest harvests in recent years.
Todd Miller, CEO of Head Honchos, shares about his business offering to ease agricultural labor shortages.
Having a good read on fuel prices is a must during harvest, but one analyst says grain farmers should also be watching the crude oil markets.
National Farmers Union (NFU) President Rob Larew discusses the urgent need for aid as farm families face mounting input costs and long-term market uncertainty.