Pushing Back at Data Centers While America Seeks More Power

In the years ahead, America will need far more power generated than we currently produce. Our ever-increasing hunger for technology – and the power that it takes to operate that technology – demand it. Wind, solar, natural gas, coal and nuclear could be all among the options to produce some of that additional capacity.

Data centers could be an integral part of the nation’s economy for the infrastructure to provide the storage, processing, internet, and distribution system to meet people’s technological needs and expectations.

But some people in rural areas are pushing back at the idea of converting farmland into the space needed to house those data centers.

Texas Town Fights Data Center Project

Residents hope a growing petition can convince leaders in the rural town of Lacy Lakeview north of Waco, Texas, to drop plans for a proposed $10 billion data center on a 520-acre site.

Opponents of the data center have a website that offers yard signs and fliers for people to publicly demonstrate their opposition and warn that data centers will provide relatively few permanent jobs for a community compared to many other developments.

But Infrakey, the company developing the data center project, told Governing.com that the community of 7,000 would benefit with an additional $50 million in local revenue, a substantial sum for a town of that size.

Ohio Communities Pass Moratorium on Data Center Projects

While state leaders in Ohio have offered incentives for data center development, they are also watching at least 18 communities that have passed a moratorium on data center projects, according to The Ohio Newsroom.

Neighbors are concerned about the loss of farmland and the strain on water and electricity.

Michigan Lawmakers Look at Plan to Limit Data Centers

There’s also a bipartisan push from lawmakers in Michigan to stop data centers, despite support for the industry from Governor Gretchen Whitmer, a Democrat and possible 2028 presidential candidate.

State Rep. Jennifer Wortz (R-Quincy) told the Michigan Advance, “Between the land being cleared for development, the demand for energy they will add to the grid, and the tremendous water usage, these projects could cost communities more than they are worth.”

She added, “I grew up on a farm, I own a farm, I’m a conservationist, and I understand the importance of proper land management. We can’t continue to allow our farm ground and natural resources to be mindlessly destroyed.” 

RELATED: Central Pennsylvania farmer Mervin Raudabaugh, Junior, turned down a $15 million offer for his land from developers of a data center. American Farmland Owner talked with the leader of an organization that helped Raudabaugh, 86, ensure that his land would remain for agriculture for years to come.  

Dr. Dave Muth, Director of Capital Markets for Peoples Company, told American Farmland Owner about the competing forces of the need for electricity, the potential of renewable energy like wind to produce some of that power, and the opposition by some community members and politicians to what could be needed to power data centers.  

“I think there's also some sorting out on how this ultimately all ties into the whole data center, sort of, ‘AI world’”, Muth said.

“It’s a little bit speculative on my part. But generally speaking, there seems to be a real momentum around leadership in the U.S. saying, ‘hey, we've got to lead on AI,’” Muth said. “’And that means that we're going to have to have massive data center development.’”

Muth is bullish on the potential for renewable energy to produce some of the electricity that data centers will need, current opposition in some communities notwithstanding. “We’re going to need a lot more energy.”

RELATED: Dr. Dave Muth explained to American Farmland Owner the factors farmland owners need to consider as they look at additional income potential from renewable energy at a time when data center developers are searching for more power.