LUBBOCK, TEXAS (RFD NEWS) — Data centers are rapidly expanding into rural areas, raising new concerns about competition for land, water, and electricity with agricultural operations. Texas A&M AgriLife economists say the impact will depend on how these facilities use local resources and how communities manage development.
Texas is emerging as a major hub, with about four gigawatts of data center capacity already in place and nearly eight gigawatts under construction. Large-scale facilities can span hundreds of acres and operate continuously, consuming as much electricity as a small city.
Farm-Level Takeaway: Data centers may compete with farms for key resources.
Tony St. James, RFD NEWS Markets Specialist
That demand could strain rural power systems. Year-round electricity use may drive higher rates and increase grid pressure, especially during peak summer irrigation periods. Water use is also significant, with some facilities requiring more than a million gallons per day, adding pressure on groundwater resources in key aquifers.
Land use is another concern. Once converted, these sites rarely return to agriculture. While data centers can generate tax revenue, they create relatively few long-term jobs.
More than 100 pork producers traveled to Washington to meet with lawmakers and underscore the threat to small family farms.
September 19, 2025 12:04 PM
·
According to the National Council of Farmers Cooperatives (NCFC), President and CEO Chuck Conner says, there is only one other option besides addressing ag labor shortages.
September 18, 2025 01:10 PM
·
For rural communities, this shift could mean new housing options for farmworkers and young families priced out of metro markets.
September 18, 2025 11:37 AM
·
Sen. Roger Marshall, a founding member and chairman of the Make America Healthy Again caucus, joined us with his thoughts on the commission’s latest report and the key ag-related issues.
September 17, 2025 04:36 PM
·
Grain shippers face lower freight values thanks to weak soybean exports and strong rail service, but barge traffic and forward Gulf loadings suggest continued uncertainty as harvest ramps up.
September 17, 2025 04:01 PM
·
The EPA proposal laid out two options: fully reallocate all exempted volumes to the 2026–2027 standards, or reallocate half.
September 17, 2025 12:04 PM
·
