South Texas Weighs AI Data Center Growth Against Agricultural Land Concerns

As AI-driven data centers expand in rural South Texas, local officials and economists debate water use, farmland impacts, and the balance between technology growth and agriculture preservation.

WILLACY COUNTY, TEXAS (RFD NEWS) — Artificial intelligence is increasingly shaping the future of emergency services and digital infrastructure, but its expansion into rural Texas is raising questions about farmland use and long-term impacts on agriculture.

In Willacy County, a new data center project known as Project Kati is part of a broader push to build large-scale computing facilities in rural regions. Local EMS officials say the technology driving these facilities is already becoming essential.

“As you see, everywhere they have artificial intelligence, and so artificial intelligence requires data centers to be able to operate and to be able to answer those questions,” said Gilbert Torres, Assistant Director of Willacy County EMS.

Supporters of development say these projects bring innovation and economic opportunity, even in agricultural areas.

Members of the ag community here in South Texas recognize that these data centers are very important for the community and very important for the future, so giving up this land is not the worst thing ever,” said RFD-TV Correspondent Frank McCaffrey.

However, concerns over farmland loss and resource use have drawn attention from state agriculture leaders. Texas Agriculture Commissioner Sid Miller has warned that rapid data center expansion could threaten prime agricultural land and food production.

“The unchecked spread of data centers onto prime farm and ranchland is a real and growing threat to our food supply,” Miller said, calling for agricultural freedom zones to guide development through targeted incentives.

Water usage is also a major concern in regions already facing agricultural stress. Texas A&M AgriLife Extension economist Manuel Garcia says the impact depends heavily on infrastructure and resource management.

“the indirect impact that they can have, like the use of water. If you don’t use a good system for, I mean, the cooling system and you’re using a significant amount of water, it can create actually impact indirectly a lot of the farmland that depends on the water for the use. So indirectly, it can affect the farmland,” Garcia said.

Despite these concerns, some experts say the land impact may be limited compared to overall available acreage in rural counties.

“I know there are concerns that they are trying to address the data centers as well as the elected officials to ensure, one, that it doesn’t take over all of their acreage,” Torres said.

“In terms of the size of the facility, sometimes they require a few hundred, maybe a thousand acres, which for some of those counties, farmland, we have more than 200,000 acres,” Garcia added.

As data center development continues to expand across Texas, communities are left weighing the benefits of technological growth against the preservation of farmland and agricultural resources.

Frank McCaffrey reporting for RFD News.

READ MORE: Data Center Boom in Rural Texas Sparks Debate Over Agricultural Land Use

Related Stories
William Clark Green joins us to discuss Cotton Fest, the High Cotton Relief Fund, and the role of music and community in supporting Texas agricultural producers.
Corey Geiger joined us to discuss his career in the dairy industry, receiving the Holstein Association USA Distinguished Leadership Award, priorities for young producers, and major takeaways from the National Holstein Convention.
Whether you’re wrapping up a day in the field or simply enjoying a summer evening on the porch, tonight’s Strawberry Moon offers a beautiful reminder of the changing seasons.
State President Riley Farris reflects on a year of service as thousands of members prepare to gather in Fort Worth.

RFD NEWS Correspondent Frank McCaffrey covers news from Texas, in the US-Mexico border region. He has provided in-depth coverage of immigration, the 2021 Texas freeze, the arrival of the New World screwworm, and Mexico’s water debt owed under a 1944 treaty.

LATEST STORIES BY THIS AUTHOR:

RanchHER Caroline George Larson joins us to discuss her journey into ranching and publishing, storytelling in agriculture, and her upcoming chat on Dirt Diaries: The FarmHER + RanchHER podcast.
National Farmers Union President Rob Larew and National Potato Council CEO Kam Quarles discuss the Senate Farm Bill, farm safety-net priorities, supplemental aid, year-round E15, support for specialty crops, and federal agricultural policy.
Rep. Monica De La Cruz says she’s working to make Mexico’s water obligations part of USMCA negotiations.
The grants are designed to expand processing capacity, strengthen rural supply chains and improve access for livestock producers.
Animal health experts say every livestock operation should have a strong biosecurity plan in place regardless of its location.
National Pork Producers Council’s Trish Cook joins us to discuss Farm Bill differences between chambers, Prop 12 concerns, and pork industry priorities moving forward.
Agriculture Shows
Agriculture is the most important industry in the world, and Ag PhD Daily brings you the information you need to best manage your business only on RFD-TV and RFD+
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.