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
The agricultural installment land contract remains a sophisticated tool for transitioning farm assets, but its success depends entirely on the technical integrity of the written agreement.
Higher machinery costs are raising per-acre production expenses.
ASFMRA’s Tony Toso joins us with an update on California farmland values, ongoing market uncertainty, and key discussions shaping agriculture in the Golden State.
EPA Administrator Lee Zeldin, in consultation with the U.S. Department of Energy and under the Clean Air Act, approved the temporary measure to help stabilize fuel supplies and reduce costs for consumers.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
Lower costs improve competitiveness, but demand remains uncertain.

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:

Tight red meat supplies continue supporting livestock markets.
Policy clarity will determine the trajectory of soybean crush demand, but producers in Kansas have shown that expanding local crush capacity strengthens basis and marketing options.
Corn and soybean shipments continue to move at a steady pace as spring trade flows develop.
Growing milk supply may pressure prices ahead.
Bigger flocks are rebuilding egg and poultry supply.
Tight supplies are driving stronger early-year cattle prices.
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.