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
Surging energy markets are quickly becoming a cost story for U.S. agriculture as crude oil climbs on supply fears tied to the Middle East conflict.
Strike risk adds volatility to already tight markets.
Technology-driven lending decisions may shape the future availability of farm credit.
Logistics remain firm, but freight costs continue to rise.
The American Coalition for Ethanol reacts as the Farm Bill heads to a full House vote — while ethanol expansion, including year-round E15, is left out — as well as the USDA’s pursuit of global markets for ethanol.
Global food prices rose slightly in the latest FAO Food Price Index as vegetable oils, cereals, and meat increased, offsetting declines in dairy and sugar.

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:

Heavy cattle weights are cushioning beef supplies despite shrinking herd numbers.
Purdue University’s Dr. Michael Langemeier discusses the survey’s findings in February and broader signals in the months ahead.
Roger McEowen of Washburn University School of Law joined us to discuss key legal and tax issues ranchers should consider as they recover from recent prairie fires across the Southern Plains.
Texas lawmakers secure funding for sterile fly production as officials work to stop the New World screwworm from spreading into the U.S. cattle herd.
Pennsylvania Secretary of Agriculture Russell Redding discusses the recent surge in bird flu cases, the state’s expanded biosecurity response and efforts to support poultry producers.
Geopolitical risk is rapidly increasing fertilizer price volatility before planting.