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
Colin Reilly with Connected Nation joined RFD-TV News to explain how the tool works and why it’s an important step in bridging the digital divide.
Jeremy Kelly explains how Darling Ingredients’ mission aligns with FFA’s values and why investing in future ag leaders is so important.
Farmers are in the midst of harvest as the government descends into a shutdown and the Farm Bill expires. Key federal departments, crop reporting, and aid programs important to the agricultural sector are now on hold.
Together, these markets highlight the diverse forces shaping industrial inputs and safe-haven assets.
Farmers face tighter barge capacity and higher freight costs during peak harvest.
Jeramy Stephens, with National Land Realty, says that despite today’s economic headwinds, farmland remains a resilient asset — and understanding local conditions is key to making sound decisions.

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:

“Those could’ve easily been our beans going over there. It goes to show that if that opportunity is there, China would be willing to buy.”
We caught up with Karen Braun, Chief Market Analyst at Zaner Ag Hedge, at the Women in Agribusiness to discuss the data behind commodity trading.
Weston Brown joined us on Monday in the RFD-TV Studios in Nashville to share how he is preparing for the upcoming National FFA Convention & Expo.
Missouri Director of Agriculture Chris Chinn joined us Monday to share highlights from Secretary Brooke Rollins’ visit and her perspective on USDA’s new initiatives.
RFD-TV Farm Legal and Taxation expert, Roger McEowen, with the Washburn School of Law, joined us Monday to break down the changes and explain what producers should know.
North Dakota Farmers Union (NDFU) President Mark Watne joined us Monday to share his perspective on the America First Trade Promotion Program and potential implications for producers.