AI data centers are rapidly expanding into rural America, raising significant concerns among farmers and ranchers about the depletion of local resources, particularly water and agricultural land. A significant portion of planned data centers, 67%, are slated for rural communities, and 39% are in counties without existing facilities, according to an April Pew Research Center analysis. This shift is problematic for rural areas, which often lack the financial resources and specialized expertise to effectively negotiate with large tech companies.
Water consumption is a major flashpoint. For example, in Montana, a utility company purchased 6,000 acres of cattle-grazing land near Clint McRae's ranch, leading to speculation that an AI data center is planned. McRae, whose herd has shrunk due to chronic droughts, fears the project will divert essential water needed for his livestock and crops. Ranchers are worried about a permanent decline in their herds and revenue if water is reallocated to data centers, while data center operators could face higher water tariffs or regulatory fines.
Rural residents are also concerned about rising electricity costs and the overall impact on their quality of life. A survey conducted in February by the University of Illinois and Purdue University found that rural residents expressed the highest level of concern regarding potential increases in electricity costs, followed by the use of agricultural land and water overuse. Politicians, such as Texas Governor Greg Abbott, are responding to these concerns by proposing stricter regulations, including requiring data centers to be self-sufficient in power and water, prohibiting them from rural neighborhoods, and eliminating tax breaks.
More than 1,500 data centers are in development nationwide. Virginia is a leader with 398 operating and 287 planned facilities, while Illinois tops the Midwest with 139 operating and 123 planned. The Midwest alone is expected to see a 64% increase in data centers, with 419 planned facilities in addition to its 655 existing ones. The energy demands for data centers are projected to more than double in Illinois and triple in Indiana, Michigan, Minnesota, and Wisconsin by 2030, intensifying the conflict between tech growth and agricultural sustainability.
