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
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.
For producers, the issue is diesel, freight, irrigation fuel, and input delivery.
Ohio Farm Bureau’s Evan Callicoat discusses data center expansion in the state, producers’ land and resource concerns, and debates over tax exemptions and rural development.
Mike Stranz joins us to discuss farm safety net reforms, NFU’s proposed IMSET program, and the challenges facing family farmers nationwide.

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:

Drought remains a major risk, with the ERS reporting that 98 percent of the U.S. cotton production area was affected by drought in early May.
Higher placements lifted feedlot inventories, but slower marketings point to continued tightness in finished cattle movement.
China remains critical to U.S. farm exports, but Brazil’s growing market share keeps pressure on U.S. soybean demand.
Tight cattle supplies should keep beef prices supported, while dairy, pork, and poultry are poised for greater production growth.
Early wheat harvest is moving, but rain, drought stress, and disease pressure will determine yield and quality.
China’s pledge is supportive, but producers need confirmed sales and shipments before counting it as stronger export 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.
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.