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
In a statement provided to RFD-TV News, a USDA spokesperson reiterated President Trump and the USDA’s commitment to farmers in difficult economic times.
Dr. Jeffrey Gold, President of the University of Nebraska, notes that many heart-related conditions can be prevented through lifestyle changes.
Support policies that keep U.S. biofuels at the table—marine demand could materially lift corn grind, crush margins, and rural jobs.
China is not one of our top suppliers of cooking oil, according to USDA ERS data, but does export a lot of used cooking oil to the U.S. for biofuel production.
Industry leaders say $11 billion in new investments could turn the tide as dairy producers face shrinking margins and growing uncertainty.
Alan Bjerga with the National Milk Producers Federation joins us to discuss the idea behind the campaign and why accurate labeling on plant-based beverages matters to both consumers and dairy producers.

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:

U.S. Senator Joni Ernst (R-IA) joined us on Wednesday’s Market Day Report to share why Ames is uniquely positioned to support expanded USDA operations.
Iowa land values dropped 3% year-over-year. Sen. Chuck Grassley said this discomforting pattern is a harbinger of crisis for farmers, as seen in the 1980s.
Prepare for tighter cash flow, delayed capital buys, and policy-driven risk management this fall.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
Delaware FarmHER Katie Evans turns “ugly” produce into delicious treats through her nationally recognized brand, The Frozen Farmer