Data Centers Drive Long-Term Energy Demand Growth Outlook

Shifts in energy demand will influence fuel, fertilizer, and input costs.

Aerial drone shot of distribution warehouses and data center logistics hub with truck cargo shipping import and export in Biggleswade England UK_Liam Carter via AdobeStock_1573070273.jpg

Aerial drone shot of distribution warehouses and data center logistics hub with truck cargo shipping import and export in Biggleswade, England, United Kingdom.

Photo by Liam Carter via Adobe Stock

LUBBOCK, TEXAS (RFD NEWS) — Rising electricity demand tied to data centers is emerging as a major driver of long-term energy markets, with implications for agriculture through increased demand for fuel, fertilizer, and biofuels.

According to the U.S. Energy Information Administration’s Annual Energy Outlook 2026, overall U.S. energy consumption is expected to remain flat or decline slightly through 2050 due to efficiency gains, even as the economy grows. However, electricity demand is projected to increase steadily, largely driven by the expansion of data center infrastructure.

To meet that demand, generating capacity is expected to rise 50-90 percent by 2050. Natural gas, wind, and solar are projected to supply the majority of that growth, while coal continues to decline under most policy scenarios. Natural gas production is expected to increase significantly, supporting both domestic use and exports.

For agriculture, energy trends remain closely tied to input costs. Higher demand for electricity and natural gas can influence fertilizer production costs, while stable oil production may help moderate diesel prices over time.

Ethanol and other biofuels remain part of the broader energy mix, particularly as policy and technology evolve.

Farm-Level Takeaway: Shifts in energy demand will influence fuel, fertilizer, and input costs.
Tony St. James, RFD News Markets Specialist
Related Stories
Higher energy activity likely keeps fuel and fertilizer costs elevated.
Lower shipping costs alone will not restore export competitiveness.
Rising fuel costs will soon increase grain transportation expenses.
At the White House’s “Celebration of Agriculture,” the Trump Administration announced a slate of policies to support farmers and ranchers, including biofuel mandates, SBA loan programs, and new labeling policies to boost domestic markets for ag products.
This week on Champions of Rural America, Congressman Nick Begich discusses the lease sale, its economic impact, and what it could mean for future energy production in Alaska.
SoilView’s Chris Nelson explains why soil testing is essential, how it enhances nutrient management, and why growers should focus on data-driven strategies to guide planting and fertilization this year.

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:

Exports depend more on demand than currency shifts.
Spring Fieldwork Advances As Weather Patterns Shift Nationwide
Corn and soybean exports continue supporting demand levels.
manage risk as milk price volatility increases.
Strong beef demand is offsetting weaker cash cattle.
Brazil logistics issues may support U.S. soybean demand.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.