Inside Ag: What data centers could mean for farmers

Farmers in Bingham County, Idaho, are raising concerns about the growing demand for electricity and water from new data centers, fearing increased operational costs. Adam Young, a farmer who irrigates 2,600 acres, highlighted that electricity is one of his top three expenses, amounting to nearly $200,000 annually, with costs increasing by 45% in the last five years. The farmers' primary worry is that the infrastructure investments required to support large power users, such as data centers, will be passed on to existing ratepayers. Young cited a recent case involving Micron and the Idaho Public Utilities Commission (PUC). Micron sought to fast-track its electricity rate contract with Idaho Power, but the Idaho Irrigation Pumpers Association intervened, providing evidence that millions of dollars in costs could be shifted to current customers. The PUC subsequently paused the fast-track approval, calling for a full technical hearing. Beyond electricity, farmers are also apprehensive about data centers' water consumption, questioning the volume needed, recycling practices, and potential impacts on local water resources. In response to these growing concerns and potential cost increases, Young's farm has installed solar trackers to generate 90% of its electricity needs, aiming to offset 60% of its power costs and protect against future price hikes.