From university professors and school students to software engineers, farmers, financial analysts, and homemakers, people across the globe—whether in bustling urban centers or tranquil rural towns—are increasingly turning to AI platforms such as Google, ChatGPT, and Grok.
While the United States has long led global internet data consumption as the third largest, India surpasses all countries to become the top user by total data usage. What began as an AI revolution concentrated in cities is gradually extending into rural and semi-urban regions.
AI depends on robust infrastructure—capacity for high-speed computing, power, cooling, and fiber connectivity. In the U.S., private and public sectors are pouring tens of billions into this infrastructure.
READ: Amid surging energy demands from AI and data centers, Big Tech turns to nuclear power (November 29, 2024)
Big tech companies like Amazon have pledged over $30 billion for AI-ready data center campuses: $20 billion in rural Pennsylvania— “AI innovation campuses” in Salem and Falls Townships—and $10 billion in Richmond County, North Carolina—projects expected to generate high-skilled jobs and include local training initiatives with community colleges and K–12 schools.
Google and Meta are both planning to build extensive underwater cable networks. Meta—the parent company of Facebook, Instagram, and WhatsApp—has expanded its focus beyond social media to include AI and the infrastructure that powers it. As part of this effort, Meta has announced plans to build a 50,000-kilometer (31,000-mile) subsea cable system called Project Waterworth. Designed to enhance global connectivity, the cable will link the United States, India, South Africa, Brazil, and other regions. Once completed, it will become the world’s longest underwater cable project.
AI-driven demand is accelerating broadband deployment in rural regions. Data center development spur fiber network expansion, as seen in places like Iowa, Virginia, and Texas. This creates opportunities for fiber-to-the-home (FTTH) service, broadening Internet access
In 2023, the U.S. broadband industry invested $94.7 billion in communications infrastructure, driven in part by AI-related demand and rural broadband needs
Major tech giants are transforming farmland into AI hubs. For example, Culpeper County, Virginia, is slated for multiple rural data center campuses: Cielo Digital may invest up to $7.5 billion, while CloudHQ is building a 2.1 million square feet campus with a 275 megawatts of IT load.
Although data centers bring jobs and digital upgrades, they also demand substantial energy and water. In rural Georgia, a Meta data center caused severe well contamination, noise, and light disruptions for nearby residents. This underscores the need for accountability and sustainable infrastructure planning.
In the United States, rural areas cover 97% of the landmass and are home to approximately 20% of the population—about 66.3 million people, according to the U.S. Health Resources and Services Administration (HRSA). In other words, roughly one in five Americans lives in a rural community.
Given the scale of this population and the availability of land and resources, the AI boom is increasingly targeting rural America. As Megan McDonough, editor at LinkedIn News, noted:
“Several tech giants are eyeing rural communities for their access to land, transmission lines, and natural gas to meet rising energy demands,” per The Wall Street Journal.
This shift is driven by the growing need for power and physical space to scale AI data centers. While the expansion of digital infrastructure can generate jobs and local revenue, it also comes with significant trade-offs. For instance, Meta’s new $10 billion data center in Louisiana could consume up to 15% of the state’s total electricity supply.
Mark A. Magnuson, an American biologist and the Louise B. McGavock Professor of Molecular Physiology and Biophysics, Medicine, and Cell and Developmental Biology at Vanderbilt University, has highlighted how rural America is playing a critical role in advancing AI innovation. “Rural America is becoming the home of more data centers to power artificial intelligence,” he wrote.
Jeff Johnston, lead economist for infrastructure at CoBank, echoes this view, noting that rural regions in the United States are increasingly leading the charge in AI development.
A growing number of technologists, investors, and financial leaders are urging tech companies to turn their focus toward rural America. As Johnston emphasized, “Rural America is seeing a huge growth in data centers. It’s a remarkable development—especially as it pertains to AI—because the stakes are high and major technology companies are spending significant amounts of money to establish data centers.”
The scale of AI data centers has become massive—and their power demands are equally staggering. As a result, data center owners and operators are increasingly investing in rural areas that offer access to natural gas pipelines and robust telecommunications infrastructure, reshaping local landscapes in the process.
As AI continues to drive the future of digital infrastructure, a critical question emerges:
How will the mismatch between long-term infrastructure investments and short-term contracts from tech companies play out? Could this imbalance create risks for both investors and the broader economy, or will AI’s momentum outpace these challenges?
Despite the uncertainties, AI has the potential to improve lives in rural America. From vast farmland to vibrant small towns, rural America embodies the ideal that dedication and innovation can drive meaningful progress. But to keep the country strong and prosperous, continued adaptation is essential.
The rapid expansion of energy-intensive AI data centers is putting significant pressure on rural power grids. In parts of the Midwest and Plains, these facilities consume 10 to 50 times more energy than typical commercial buildings, with national electricity usage by data centers likely rising from 4.4% in 2023 to nearly 12% by 2028.
This surge in demand has already led to higher electricity bills for rural residents and initiatives like Indiana and Ohio are introducing special tariffs to ensure that data centers bear a fair portion of the infrastructure costs. Utilities are largely shifting new grid investments onto residential and small-business customers.
Data centers rely heavily on water-intensive cooling systems. In rural and drought-prone areas, this has sparked serious issues. A single 100 MW data center can consume over two million liters of water per day, roughly equivalent to the daily use of 6,500 households. In regions already facing water scarcity—like parts of Georgia, Texas, Arizona, and Oregon—this demand compounds stress on aquifers and municipal supplies.