Bipartisan Push to Study Impact of Data Centers on Rural U.S.

Few topics in rural America can be as divisive as addressing the construction of data centers for artificial intelligence platforms. Critics claim they overload energy infrastructure, use too much water, and cause dangerous increases in traffic; supporters say that they can be an economic boon through tax revenue and employment in the trades. Two U.S. representatives are now hoping to sort through the noise and understand the real impact these data centers can have.

Democrat Jim Costa from California and Republican Blake Moore from Utah have introduced H.R. 5227, the Unleashing Low-Cost Rural AI Act, which would require the U.S. Departments of Energy, Interior, and Agriculture to study the impact of AI data center expansions in rural America.

“AI Data Centers are expanding rapidly and using more energy and water than entire cities. That energy demand is driving up utility costs for consumers,” Costa explained. “My legislation ensures we take a hard look at how this growth impacts rural communities that are powering the AI industry, and make sure families aren’t left paying the price. But at the same time, it’s important that rural communities are not left behind in the new opportunities that AI data centers will provide for agricultural sciences and an improved ability to compete in this modern era.”

In a recent article for AGDAILY, Jonathan Lawler with the Rural Strategies Group made the case for data centers — when they’re thoughtfully included in rural planning. He said:

“The truth is, these new data centers don’t take up nearly as much farmland as big box distribution warehouses, sprawling factories, and, my least favorite, subdivisions. These data centers typically get developed on a few hundred acres, not thousands (with the exception of some hyperscale projects), and they’re not belching smoke or filling up the roads with tractor-trailers all day.

“As I looked at many of the headlines and stories being shared, it became clear that there were certainly issues rising around a few notable developments around the country, but not all data centers have those issues. Indeed, not all data centers are equal, and many are continually retrofitting to become increasingly sustainable.”

Data centers to promote artificial intelligence are increasingly being built in rural areas to power the burgeoning AI industry. This surge has led to increased energy demand and higher utility costs for consumers. PJM, the world’s largest energy market that covers 13 U.S. states from Illinois to Washington, D.C., estimates that data centers are responsible for an added $9.3 billion in costs for ratepayers.

This House Resolution would push federal agencies to find ways to upgrade existing energy infrastructure so AI and data centers can be built alongside power facilities. It will review not just nuclear and geothermal energy, but also hydroelectric dams, solar, wind, battery storage, and carbon capture.

“As a leader in both tech and energy innovation, Utah is a prime location for data centers and AI infrastructure. Cementing our role as an innovation hub will require identifying rural areas ready for data expansion, streamlining permitting for new energy projects, and promoting the co-location of data centers with energy facilities,” Moore said. “These efforts will power our growing digital demands without passing costs on to families. I’m grateful to partner with Representative Costa to introduce the Unleashing Low-Cost Rural AI Act to identify other areas of the country, like Utah, that will advance solutions to meet our energy needs.”

Lawler added in his piece, “Rural America has always been the bedrock of this nation’s strength. Today, it can be the foundation of its future. … And here’s my two cents for any developer or company thinking about building in rural America: Don’t come in just asking for handouts. Show up ready to pay your fair share, just like the rest of us. We know that their ‘fair share’ can be a healthy chunk of revenue that helps fund our schools, our fire departments, and our community services.”