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
U.S. soybean farmers are growing increasingly frustrated by Argentina’s gains in Chinese grain contracts and Trump’s pledge of economic support for the South American ally.
Farm legal and taxation expert Roger McEowen explains the IRS’s shift to electronic payments and disbursements, and what it means for upcoming tax filings.
Estate tax relief reduces pressure, but succession planning remains the critical challenge for farm families.
Midwest corn and soy producers are monitoring for disease and lower yields due to the ongoing drought over the last 30 days.
Farm work is hard work, and as the harvest season brings heavier workloads, experts are urging producers to pay closer attention to joint pain and ways to prevent it.
Fewer placements and historically low marketings point to tighter cattle supplies ahead, with Nebraska and Kansas gaining ground as Texas feedlots face supply pressure and the threat of New World Screwworm.

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:

FarmHER Katey Jo Evans of The Frozen Farmer joins us for a sneak peek of the latest episode of Dirt Diaries: The FarmHER + RanchHER Podcast.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
House lawmakers are expected to vote late this afternoon to end the longest government shutdown in U.S. history. The bill they are voting on includes some big priorities for Rural America.
Kubota President Alex Woods discusses the “Geared to Give” program, the company’s commitment to those who served, and how the initiative continues to grow and impact veterans.
Tyson expects another year of beef-segment losses due to tight cattle supplies, even as chicken, pork, and prepared foods strengthen overall margins.
Team Kubota’s Nick Hatfield joins us to talk about the Summit Cup — the fourth and final event in Major League Fishing’s Fishing Clash Team Series presented by Bass Pro Shops.
Agriculture Shows
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.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.