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
RFD News Farm Legal Expert Roger McEowen shares the major role of timing clauses in farmland sales, leases, and succession planning.
At the center of the announcement is the Blue Point Project in Louisiana, a $3.7 billion ammonia facility, USDA says, that will become the world’s largest ammonia plant once completed.
Southern Plains wheat shippers face higher rail fuel surcharges as hard red winter wheat production falls toward a nearly 70-year low.
Ag Commissioner Sid Miller and Rep. Henry Cuellar say rising costs and generational shifts are making it harder to keep young producers in the industry.

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:

Ethanol plants kept production steady, but softer gasoline demand and lower exports may limit near-term momentum.
Aimee Bissell discusses Iowa planting progress, weather conditions, fertilizer costs, and concerns over early crop development.
Farm CPA Paul Neiffer discusses SDRP payment limits and offers advice for those seeking higher limits.
Farmers are closely watching upcoming U.S.-China trade talks as rising fertilizer and diesel costs continue to pressure exports, margins, and rural economies.
Dr. David Anderson says lean beef demand and lighter cow culling are still giving cull cow prices room to push higher.
Stronger overseas demand for both fuel ethanol and feed co-products continues to reinforce corn use beyond the domestic market.
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.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.