Poultry Farms Compete with Data Centers for Rural Resources

Data centers, which are massive facilities that house computer servers for processing and storing data, have become a significant presence in rural areas where poultry farms operate. While they provide internet infrastructure to improve efficiency for modern poultry production, their impact on the industry is complex.

The use of artificial intelligence and integrated control systems has transformed management decision-making for poultry growers, leading to economic gains. However, data centers are massive consumers of electricity, with estimates suggesting that their power demand could rise significantly by the end of the decade. This increased demand could contribute to higher electricity costs for poultry operations, which already rely heavily on electricity.

Data centers also require substantial amounts of water to manage heat, often using more than a million gallons per day. This competition for water can strain local utilities and drive up water costs for poultry farms. Additionally, the expansion of data centers may lead to increased demand for natural gas, potentially driving up fuel prices for poultry growers.

The situation is further complicated by the link between natural gas and propane, with a large share of U.S. propane derived from natural gas production. Increased natural gas output could boost propane supply and moderate LP prices, but this may not be a universal benefit for all growers.