LUBBOCK, Texas (RFD NEWS) — Data center growth is accelerating in rural America, bringing new tax revenue and infrastructure investment while also putting more pressure on farmland, water, and electricity. For agriculture, the issue is not just development. The question is whether rural communities can add digital infrastructure without undercutting long-term farm and ranch productivity.
The American Farm Bureau Federation (AFBF) says thousands of data centers are now active or under construction across the country. The group says those projects are increasingly moving into rural areas because land is available, transmission access is stronger, and local zoning can be more flexible.
That creates direct competition for core farm resources. The report says farmland conversion is often permanent, while large facilities can also place added demands on power grids and local water supplies.
Texas and Virginia remain the leading states for data center development. AFBF says that growth can raise speculative land values and, in some areas, make it harder for active farmers to buy or rent ground at agricultural prices.
The group says balanced policy, careful siting, and early local engagement will be critical. It argues rural communities can support both agriculture and responsible data center growth if land and resource decisions are made with long-term productivity in mind.
Farm-Level Takeaway: Data center growth can create opportunities, but competition for land, water, and power will be more pronounced in rural areas.
Tony St. James, RFD News Markets Specialist
With new renewable volume obligations announced this year, the Iowa Soybean Association says they’ll be vital to a farmer’s bottom line.
September 10, 2025 01:19 PM
·
The 2022 Census of Agriculture revealed a more than 30% decrease in U.S. dairy farms since 2017. The shrinking industry is now uniting to advocate for itself while also adopting technology to reduce operational strain.
September 10, 2025 12:55 PM
·
The Supplemental Nutrition Assistance Program (SNAP) was once again on the national stage, front and center this week before the House Agriculture Committee.
September 10, 2025 11:10 AM
·
Labor is an ongoing crisis in the ag sector. One industry group outlines three vital reforms to the H-2A visa program that farmers need to secure an affordable, stable workforce.
September 09, 2025 12:22 PM
·
Pressure to lower gas prices across the Golden State could be the saving grace of this year’s corn harvest. California may soon be the final U.S. state to approve E-15 sales.
September 09, 2025 11:12 AM
·
Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s
Market Day Report for a further look at the drop in replacement heifers and the trend’s longterm impact on dairy producers and cattle prices.
September 05, 2025 12:40 PM
·
