Data Centers and Their Implications for Rural Communities

Data centers are expanding into rural regions of the United States, competing with existing agricultural operations for essential resources like land, water, and energy. Authors Kodjo Barnor, a Doctoral Student at Texas A&M University, and Chrystol Thomas, Assistant Professor & Extension Specialist at Texas A&M AgriLife Extension, highlight Texas and Virginia as prime locations for this development due to competitive electricity markets and available land. The article explains that hyperscale data centers, built by companies like Amazon, Google, and Microsoft, can span hundreds of acres and consume as much electricity as a small city. In Texas, ERCOT forecasts a significant increase in peak electricity demand by 2031, with data centers expected to be a major contributor, potentially leading to higher electricity rates and grid stress for irrigators and other large users. Additionally, many facilities use evaporative or hybrid cooling systems that require substantial water withdrawals, posing a concern for regions overlying stressed groundwater systems such as the Ogallala Aquifer. From a land use perspective, data centers convert agricultural land for long-term industrial use, rarely returning to farming. While they offer property tax revenue and construction jobs, operational employment is low. Communities are advised to carefully evaluate these tradeoffs, considering the strain on water aquifers, the need for transmission upgrades, and the overall economic benefits versus pressures on local infrastructure and resources before approving such projects. Texas groundwater law, following the rule of capture, also allows developers to withdraw significant groundwater, necessitating engagement with local groundwater conservation districts.