LUBBOCK, TEXAS (RFD NEWS) — Texas farmers and ranchers may face growing competition for local water supplies as artificial intelligence data centers expand in rural areas. John Duff with Sero Ag Strategies says the key agricultural concern is water use, especially where groundwater is already declining.
A typical data center may use about 300,000 gallons of water daily for cooling, while a large hyperscale facility can consume as much as 5 million gallons per day. Texas already has hundreds of data centers operating or under development.
Agriculture uses far more water statewide, particularly for irrigated crops. But a large industrial user placed near farms, ranches, or small towns can create serious local pressure where wells and aquifers are already limited.
Duff says closed-loop cooling systems can sharply reduce water consumption, giving rural communities leverage through permitting, disclosure requirements, and local groundwater policy. Producers may also need to watch electricity costs as new facilities add demand to the grid.
Data centers will continue expanding, but local decisions will determine whether that growth protects agricultural water access or adds stress to already vulnerable production regions.
Farm-Level Takeaway: Farmers and ranchers should engage in local water policy before new data centers secure access to limited rural supplies.
Tony St. James, RFD News Markets Specialist
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