Data Center Water Demand Raises Rural Agriculture Concerns

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.

Cattle in drought conditions_photo by 169169 via Adobe Stock.png

A herd of cattle in drought conditions.

Photo by 169169 (Adobe Stock)

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
Related Stories
John and Savannah Scarborough have expanded their operation to include livestock, microgreens, and compost production.
Dr. Jeffrey Gold addressed growing concerns surrounding Lyme disease and other illnesses carried by ticks.
ASFMRA’s Troy Swee joins us to discuss farmland values, investor activity, rental market trends, and the factors shaping rural real estate markets in today’s agricultural economy.
Texas A&M economist David Anderson says sharp declines in lamb and mutton production are helping support higher prices.

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.

LATEST STORIES BY THIS AUTHOR:

Corn exports are strengthening the trade outlook, but lower soybean movement and weaker demand from China remain major concerns.
Higher domestic ethanol blending supports corn demand even as weekly production and export volumes decline.
Specialty crop growers should confirm eligible acreage and application access early to avoid missing available assistance.
China’s expanding farm assistance in Cuba bears watching as food trade becomes part of regional influence.
Wheat Harvest Begins As Drought Challenges Livestock Regions
Unlike facilities focused on merchant ammonia, Meadowlark would convert its on-site ammonia into UAN and sulfur-containing ATS fertilizers used by regional crop producers.
Agriculture Shows
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.
Tara Beaver Coronado (formerly known as Beaver Vineyards) is a farmer in Northern California. She raises grain crops with her dad. Tara planted her very first vineyard in 2018. Her channel is centered around her daily life on the farm, as well as promoting the diversity and scale of California agriculture.
A few years ago, the Stoney Ridge Farmer moved from a 1/3-acre lot in the city to a 150-acre farm nestled in the foothills of the Blue Ridge Mountains of North Carolina.
Cole Sonne is a fourth-generation farmer living in Southeastern South Dakota. His family farm raises Black Angus bulls and grows alfalfa, grass, hay, corn, and soybeans. Cole says, “I make these videos for your entertainment (and for my own, as well)!”