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
Pennsylvania Secretary of Agriculture Russell Redding discusses the recent surge in bird flu cases, the state’s expanded biosecurity response and efforts to support poultry producers.
Jennifer Tirey of the Illinois Pork Producers Association joined us to discuss efforts to bring pork back into Chicago Public Schools, the nutritional benefits for students, and what the decision could mean for pork producers across the state.
Farmer and retired colonial Joe Ricker joined us to highlight Ag Safety Awareness Program Week, share his work supporting veterans and farmers, and offer guidance on making safety a year-round priority on the farm.
Dry conditions may tighten hay supplies before summer growth. John Mays of Central Life Sciences joined us to discuss the risks of extended grain storage, how quality can be affected over time, and what growers can do to protect their grain while waiting for market opportunities.
Strong land values contrast with mounting credit pressure.
Agriculture Freedom Zones reflect rising concern that data center growth must not strain rural grids or displace productive farmland.

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:

Vive’s Art Graves shared insights on the new Phobos FC 360 foliar fungicide, its advantages for Canadian growers, early performance results, and the company’s ongoing commitment to advanced crop protection solutions.
Kentucky Firefighters Jonathan and Lonny Epley and Extension Agent Leann Martin tell us about a new portable grain bin rescue tool, and its potential to enhance safety for farmers and first responders nationwide.
Tennessee Ag in focus: Commissioner Holt shares his farm economy outlook, the TNFB honors a cotton legacy, and TN 4-H and FFA leaders discuss support for the next generation of agriculture in Tennessee.
F-10 Wound Spray can now be used for livestock and other animals as officials monitor the ongoing New World Screwworm outbreak in Mexico.
China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
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.