Data centers moving to rural areas as AI drives demand for computing power

News Clip1:57KFYR+·ND·8/14/2026

AI is accelerating the demand for computing power, shifting data center development to rural areas in the U.S. This trend brings potential economic benefits but also concerns regarding high electricity and water consumption, noise, and the critical role of local zoning rules.

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The rise of artificial intelligence is dramatically increasing the demand for computing power, leading to a shift in where new data center facilities are being planned. KFYR+ reporter Tia Jorgensen explained that while 87% of existing U.S. data centers are in urban areas, 67% of future facilities are expected to be built in rural locations.

This move to rural areas offers communities potential upsides, including significant private investment, new jobs, and additional tax revenue. However, the video highlights that these large investments do not always translate into a high number of long-term jobs once construction is complete. Furthermore, data centers are resource-intensive; they accounted for about 4% of U.S. electricity use in 2023, a figure projected to rise to between 6% and 12% by 2028. They also require substantial water for cooling, with usage varying significantly by design and size. Other concerns include constant noise from fans, cooling equipment, and backup generators, emphasizing the critical role of local zoning rules in managing these impacts.