Data Centers Expand into Rural Areas Competing with Agriculture

Data centers may compete with farms for key resources.

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.

Related Stories
The changing political climate in America is leading to a drop in migrant crossings near the U.S.-Mexico border, where ranchers like Dr. Mike Vickers say they witnessed horrors from death to child trafficking.
Brent Graves of StockShowAuctions.com takes us to Grayson County to see the damage from a historic winter ice storm and what it will take to rebuild.
Strong blending demand continues to support ethanol use even as production and exports fluctuate.
Todd Janzen with Janzen Schroeder Ag Law explains the updated ag data use agreement model and what it means for farmers and companies alike.
UT Extension also offers tips to help consumers stretch their grocery budgets, including meal planning, sticking to a shopping list, and choosing store or generic brands.

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:

Corn export pace remains the bright spot, but stable ethanol export demand remains a critical support for corn markets.
Rail consolidation could affect grain basis, freight rates, and service reliability across major producing regions.
For communities that depend on agriculture as their primary economic engine, the recession is not defined by headlines on Wall Street. It is defined by the quiet disappearance of the businesses that once processed, serviced, and supported the crop.
It’s National FFA Week, and today we’re celebrating Alumni Day by highlighting some inspiring former FFA members making an impact in agriculture and beyond.
Alan Bjerga of the National Milk Producers Federation discusses the Dairy Margin Coverage program, recent improvements, and what producers need to know ahead of this week’s enrollment deadline.
William Lee Golden joined us to talk about his farming roots, his storied career with the Oak Ridge Boys, and how his new book and music continue to reflect the values that have guided him throughout his life and career.