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.
Sen. Amy Klobuchar has four years remaining in her Senate term and could decide to continue serving in that role while campaigning for Governor of Minnesota.
January 29, 2026 11:51 AM
·
Reliable waterways lower costs, protect export demand, and support long-term farm profitability.
January 29, 2026 06:00 AM
·
Justin Wheeler with the American Society of Farm Managers & Rural Appraisers joined us with insight into current farmland values and what to watch in the year ahead.
January 28, 2026 02:42 PM
·
USDA Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg joined us with a recap of the Malaysia trade mission and a look at USDA’s broader trade strategy moving forward.
January 28, 2026 01:49 PM
·
Matt Brockman, Communications Director for the Fort Worth Stock Show and Rodeo, joined us with a look at how the legendary event is moving forward—weather and all.
January 28, 2026 12:27 PM
·
Strong White House backing supports ethanol demand, but timing now hinges on Congress resolving procedural — at the same time as they push toward a spending bill to avert another federal government shutdown.
January 28, 2026 11:35 AM
·
