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
When you work on your estate plan, RFD-TV’s farm legal and tax expert Roger McEowen recommends preparing a vital list of information for whoever will need it.
In Texas, there are about 800 contract broiler and turkey farms. RFD NEWS Correspondent Tammi Arender had the chance to meet with Jerry Moody, who has been in the chicken business all of his life.
In today’s Firm to Farm blog post, RFD-TV ag law expert Roger McEowen briefly examines several of the issues that farmers and ranchers face.
When it comes to agricultural law and tax, educating yourself about potential issues and seeking legal and tax counsel is crucial for any agriculture business.
RFD-TV News contributor Roger McOwen covers important topics in ag law and taxation, including FBAR, Read Before Signing, Reporting 4-H Income, and Attorney-Client Privilege.
A five-year-old in Etheridge, Tennessee, lost his life in a grain auger. His mother shares her story to ensure that other farm families do not have to endure that pain. RFD-TV’s own Tammi Arender reports.

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:

Keir Albert of Albert Acres Cattle Company joined us on Monday’s Market Day Report to share his journey into raising Texas Longhorn cattle and the reason behind his trip to Kenya.
CLAAS is expanding its customer service offerings in Iowa, as well as breaking ground in Nebraska on a 44,000 square foot research and development facility that will focus on fieldwork in the region.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report with his insights on the incident and a deeper dive into the issues at hand.
As the Trump Administration seeks out new global trade partnerships, Congress is considering more support for farmers, which comes as the Federal Reserve warns that farmers need a safety net.
Ag Secretary Brooke Rollins will travel to Europe and Asia to seek new trade partnerships for U.S. crops after China reduced imports due to tariffs.
The Tennessee State Fair features a variety of attractions, including rides, tasty foods, and dozens of agricultural competitions to enter and win. But what goes into picking achievements in each category?
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.