Rural Americans say they're worried AI data centers will drain their wallets

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AI data center developers love rural America. The feeling, though, isn't mutual.

Americans living in rural areas are more concerned about the effects of AI data centers in their communities than their urban or suburban counterparts, according to the Gardner Food and Agricultural Policy Survey.

That makes sense. Rural communities are on the front lines of the AI data center explosion. The Pew Research Center reported in April that 87% of existing data centers are in urban areas, but 67% of planned data centers are in rural ones.

In June, Business Insider reported that the majority of permits issued for new data centers in 2025 were intended for rural towns. These newer data centers are often designed to power AI and are orders of magnitude larger than the older ones built to support the internet and social media.

"More than any other issue, the impact of data centers on electricity costs is most concerning to the average respondent," the Gardner researchers wrote. "However, rural respondents were the most concerned about rising electricity costs."

Researchers at the University of Illinois conducted the online survey, which reached about 1,000 Americans, in February. They published the results in June.

Rural Americans are also apprehensive about how data centers will impact agricultural land and water use. The researchers said the survey results suggested that the greatest concern for rural residents was how it would affect their personal finances.

"Smaller communities do not want to miss out on these economic development opportunities, as some communities have benefited from the contributions these developments have made to their local tax base. However, they also do not want to have to live with decisions that could negatively impact their future," the researchers wrote.

Tech companies need the new data centers to support their AI products and are pouring billions into building them. They say the facilities will create jobs and spur economic growth in the communities where they are built. An ever-growing number of Americans, however, are pushing back. They are concerned that they'll deplete water resources and worsen air quality, the environment, and their overall quality of life. Many of them just don't like AI.

This resistance to data centers has become difficult for politicians to ignore, especially as November's midterms approach. During a campaign event this week, Texas Gov. Greg Abbott, for example, said construction of data centers in rural neighborhoods should be barred across the state.

"Any AI data event even thinking about coming here, they got to bring their own money, bring their own power, reuse their own water, and do it in a way that reduces the cost of electricity for residents across our state," Abbott said. "We must prohibit them from building AI data centers in rural Texas neighborhoods, and we must eliminate the tax break they are getting."

Abbott made the remark on Tuesday in Bullard, a rural Texas town of about 5,300 residents. Texas is a popular destination for data centers, alongside states like Virginia and California.

Abbott also directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas last month to take steps to protect residents from data center infrastructure costs.

"Governor Abbott's position is clear: data centers cannot come before Texas families," Abbott's press secretary said in a statement. "Governor Abbott will work with lawmakers next session to ensure that data centers do not negatively impact local communities."

Other prominent politicians have proposed more severe policies. In March, Sens. Bernie Sander of Vermont and Alexandria Ocasio-Cortez of New York proposed a federal-level AI data center moratorium. New York Gov. Kathy Hochul is weighing a one-year AI data center moratorium after the state's Senate advanced the legislation. Many other communities are considering adding new restrictions or barring the developments altogether.

The Trump administration, meanwhile, has broadly supported the AI infrastructure buildout, smoothing the way for initiatives like the Stargate Project, a $500 billion plan to build massive data centers across the country to support artificial intelligence. Many of those projects are in rural areas.

Lauren Edmonds is an award-winning reporter on the Business News team. When news isn't breaking, she covers personal finance, kitchen-table economics, and paths to financial freedom, including investing, real estate, side hustles, and small business. She also writes about guaranteed and universal basic income programs in the United States.Lauren has also covered lifestyle and entertainment, digital culture, and more. She has a master's degree from the Columbia University Graduate School of Journalism and resides in New York City.Do you have an interesting story to tell? You can reach Lauren at [email protected] or on Signal at ledmonds0.07.Popular StoriesNetflix wants to be Disney when it grows up Why Hollywood is paying this 17-year-old up to $20,000 to boost film trailers with TikTok editsHere's all the free money Trump's talked about giving Americans during his second term — and where it all standsA 17-year-old earned $72,000 after investing his e-commerce profits into stocks. Here's why he bet on the tech industry.Lawmakers float a nationwide basic income experiment that would cover the cost of a 2-bedroom apartmentNearly 30,000 Americans have received about $335 million in basic income. Here are 5 takeaways. Americans ditch suffocating healthcare costs and divisive politics to retire in Italy: 'It's the way they approach life'From 'road-schooling' to gas that costs $500, this family of 4 shares what it's like living in a solar-powered Greyhound bus