URBANA, Ill. (RFD News) — Rural residents are showing concern about data center growth as artificial intelligence (AI) drives new demand for electricity, water, and farmland.
University of Illinois farmdoc researchers say data centers provide the physical infrastructure behind artificial intelligence, cloud computing, and digital services. Many large facilities require significant electrical capacity, water for cooling, and hundreds of acres of developable land.
The Gardner Food and Agricultural Policy Survey asked U.S. consumers about possible effects from data centers and artificial intelligence. Concerns were above the midpoint for electricity costs, water overuse, and the use of agricultural land for development.
Rural respondents were more concerned than urban and suburban residents about electricity costs and farmland use. More than half of rural respondents were considered very worried about data centers affecting electricity costs.
Researchers say rural leaders must weigh tax revenue and economic development against infrastructure needs, utility costs, water demand, zoning, and long-term land-use tradeoffs.
The growth of data centers and other alternative land uses is creating new opportunities — and new questions — for rural landowners.
Howard Halderman with the American Society of Farm Managers & Rural Appraisers (ASFMRA) joined us on Wednesday’s Market Day Report to discuss what farmers and ranchers should consider as they receive offers to sell or lease property for projects like data centers, solar developments, wind energy and other uses.
In his interview with RFD News, Halderman said landowners have the right to consider alternative uses for their property, especially as they look for additional income opportunities during challenging financial times. He noted that projects, like data centers, solar leases, wind leases and cell towers, could create significant financial opportunities for some operations.
He also discussed the potential benefits these projects can bring to rural communities, explaining that a successful development can create advantages for the landowner, the developer and the community. Halderman said communities can establish guidelines around issues such as setbacks, buffers, water use and other concerns while negotiating potential community benefits agreements.
Halderman emphasized the importance of protecting private property rights throughout the process, encouraging landowners to work with experienced attorneys when negotiating contracts involving alternative land uses.
He said demand for data and electricity continues to increase, meaning more communities will likely face decisions about these projects in the future.
