Data Center Pledge Targets Rural Electricity Cost Concerns

Evan Callicoat with the Ohio Farm Bureau discusses data center development in rural Ohio, the state’s wastewater permitting decision, and what it could mean for agricultural communities.

WASHINGTON, D.C. (RFD News) — A White House pledge aims to keep data-center electricity costs from landing on rural households, farms, and small businesses. President Trump is asking governors, utilities, cooperatives, developers, and power providers to make large users cover added demand.

The pledge requires data centers to fund new generation, transmission, substations, and other upgrades needed to serve their projects. Companies would also negotiate separate rates and keep paying for committed power and infrastructure when usage falls.

Supporters say the model can turn new electric load into lower bills, stronger grids, and local investment. Projects in Texas, Iowa, Mississippi, Louisiana, and Georgia are cited as examples where developers are covering connection costs or supporting customer savings.

The commitment is voluntary, and state utility commissions still decide how expenses are assigned. Rural communities also remain concerned about water use, land conversion, tax incentives, backup generation, and whether promised jobs and savings materialize.

Local leaders will need to examine each power contract and development agreement. The test is whether data centers strengthen rural economies without shifting financial or infrastructure risks onto existing customers.

Data center development continues to be a major topic of discussion in rural communities across the country, including in Ohio, where a recent permitting decision is drawing support from the agricultural community.

Evan Callicoat with the Ohio Farm Bureau joined us on Monday’s Market Day Report to discuss the growth of data centers in rural Ohio and what producers are seeing as more projects are proposed.

Callicoat also discussed the Ohio Environmental Protection Agency’s decision to maintain the existing individual permitting process for wastewater discharge. He explained the proposal that had been under consideration and what the decision means for Ohio’s agricultural community.

The conversation also explored how data centers can create both economic opportunities and resource pressures, and whether the permitting decision provides a framework for responsible economic development.

Farm-Level Takeaway: Rural communities need enforceable agreements ensuring data centers pay their own power and infrastructure costs.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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