The rural energy landscape is entering a new era—fueled by data, defined by decarbonization, and embedded in a fast-changing energy economy. For small towns and rural communities, the stakes are high. But so is the potential for resilience and prosperity.
This October, JCShepard.com explores how the rapidly evolving energy economy is reshaping the future of rural America. From skyrocketing electricity demand to cutting-edge renewables and smarter land use strategies, we’re examining what rural leaders and planners need to know now—to prepare for what’s next.
What’s Next in the Energy Economy: October’s Weekly Topics
Week 1: Electricity Demand and the Expanding Energy Economy
Energy consumption is growing worldwide. We begin the October series with a big-picture perspective: how the explosive growth of artificial intelligence and data centers is fundamentally transforming the U.S. electricity landscape—at a scale few could have predicted just a decade ago.
According to the latest projections, electricity demand from data centers is expected to more than double by 2035. A significant portion of this increase comes from AI-specific facilities, which can consume 10 to 30 times more energy than traditional data centers due to the compute-intensive nature of machine learning models.
While much of this growth is clustered around metro areas, the infrastructure required to support it—high-voltage transmission lines, backup generation, and increasingly, renewable energy sources—is extending deep into rural America. And with many rural electric cooperatives already grappling with aging infrastructure and thin financial margins, the implications are far-reaching.
At the same time, rural households typically face higher energy burdens, spending 4.4% of their income on energy—compared to 3.3% nationally—and up to 9% in lower-income brackets. A recent poll by the Heatmap organization found 26% of American registered voters say rising electricity prices are having an impact on their budgets. As electricity becomes more central to economic competitiveness, digital infrastructure, and basic quality of life, resilience and affordability must be planned hand-in-hand.
This post explores:
- How AI is shifting the geography of electricity demand
- The growing energy footprint of data centers in rural and exurban areas
- Why rural energy affordability is both an economic and equity issue
- What planning tools and policy frameworks can help local leaders future-proof the grid
In a rapidly expanding energy economy, rural communities that plan strategically—balancing reliability, cost, and innovation—will be best positioned to benefit from the digital and clean energy revolutions now underway.
Week 2: Wind Energy, Wildlife, and the New Rules of Rural Zoning
Wind energy is often framed as a rural success story—and for good reason. Wind farms provide steady lease income to landowners, generate local tax revenue, and support rural job creation. But as wind energy scales up and begins to compete with other land uses, rural counties are finding themselves on the front lines of complex regulatory decisions.
Across the U.S., there are now over 1,800 local wind ordinances, with setback requirements typically ranging from 1.5 times turbine height to 1,000 feet or even miles. These rules are evolving rapidly in response to concerns over noise, visual impact, and—perhaps most critically—wildlife protection.
Research shows that bats, for example, account for the majority of vertebrate fatalities at wind turbines, leading to the widespread adoption of curtailment strategies during high-activity periods. At the same time, many modern wind projects are now co-locating Battery Energy Storage Systems (BESS) to smooth out variability and support grid stability—adding yet another layer of land use complexity.
In this post, we explore:
- How zoning ordinances are adapting to new turbine designs and storage systems
- What communities are doing to mitigate wildlife impacts and reduce bat mortality
- How rural planners balance setbacks, noise limits, shadow flicker, and community buy-in
- Where renewable energy, agricultural preservation, and environmental protection collide—and how to plan for it
As wind energy enters a more mature phase, rural communities must move beyond simplistic “yes/no” debates and adopt zoning frameworks that support strategic, sustainable deployment of clean energy.
Week 3: Agrivoltaics and the Reimagining of Rural Solar Development
Solar energy is often thought of in binary terms: either it displaces farmland, or it doesn’t. Large-scale solar farms may cover 1,000 acres or much, much more land. But a growing number of rural communities are beginning to see solar not as a threat, but as an opportunity to diversify land use—especially through innovations like agrivoltaics, which combine solar generation with continued agricultural production.
By elevating panels and spacing arrays to allow for crop growth or livestock grazing underneath, agrivoltaic systems can help retain soil moisture, boost yields in dry conditions, and even support pollinator habitats. And for farmers, the economics are compelling: where a traditional lease might earn $100 per acre, solar leases often start at $500+ per acre, with long-term stability.
Yet despite the promise, many rural leaders are deep in conversations about how to balance property rights between those who want to build solar infrastructure, and those who do not want it to mar the landscape. “Silent ordinances”—those that make no provision for solar—can effectively block development. Others impose setback and height restrictions that are poorly matched to solar design best practices or effective mitigation of visual impacts.
This post examines:
- How agrivoltaics can help rural economies adapt to climate and market pressures
- Why overly restrictive and outdated zoning are among the biggest barriers to rural solar adoption
- The real impact of solar on farmland values and agricultural viability
- How dual-use solar systems can enhance biodiversity and community support
By integrating solar into a broader rural land use strategy, communities can meet clean energy goals without sacrificing agricultural heritage—or local control.
Week 4: Biomass, Geothermal, and Small Modular Reactors—The Frontier of Rural Energy Innovation
Not all renewable energy comes from wind and solar. A new generation of emerging technologies—including biomass energy, geothermal systems, and Small Modular Reactors (SMRs)—is creating diverse pathways to clean, dispatchable energy, especially in rural regions with legacy energy infrastructure.
Biomass projects convert forestry and agricultural waste into usable energy and heat, while supporting rural economies through pellet manufacturing and forest stewardship. Geothermal energy, traditionally limited to volcanic regions, is becoming more widely accessible through enhanced geothermal systems (EGS). And SMRs, still in early stages of deployment, offer the potential for carbon-free baseload power on the footprint of decommissioned coal plants.
Each of these technologies brings promise—but also real planning and policy challenges: community acceptance, siting, permitting, and the long-term handling of materials (especially for nuclear).
This post delves into:
- How rural biomass can add value to waste streams and forest management
- What makes geothermal a good fit (or not) for certain rural regions
- Why SMRs may represent a second act for coal towns and industrial corridors
- How rural planning can guide emerging tech to deliver local value—not just centralized power
By expanding the rural energy toolkit beyond wind and solar, these technologies offer new ways to connect clean energy with community revitalization—and position rural areas as innovation hubs in the energy economy.
Why it matters:
These shifts aren’t just technical—they’re transformational. Energy is becoming a core pillar of rural economic development and long-term community resilience. Whether you’re a planner, policymaker, utility manager, or just energy-curious, this series will offer data-driven insights, grounded analysis, and a window into what’s possible.
A new post drops every Sunday in October. Stay tuned, and let’s rethink what rural energy can be.
#RuralEnergy2025 #ResilientCommunities #CleanPowerPotential
Read More: Exploring the Rural Energy Economy
Whether you’re a rural planner, policy advisor, or energy enthusiast, these resources offer valuable insight into the trends, technologies, and tensions shaping today’s energy economy.
Recommended Books
- Rural Renaissance: Revitalizing America’s Hometowns through Clean Power by L. Michelle Moore
A reader-friendly reflection on rural electrification and the energy future, with a focus on clean power. - Democracy in Power: A History of Electrification in the United States by Sandeep Vaheesan
Traces the century-long struggle for control of electric production and distribution in the US. - The Next Greatest Thing: Fifty Years of Rural Electrification in America by Richard Pence & Patrick Dahl
A historical reflection on rural electrification. - Power After Carbon: Building a Clean, Resilient Grid by Peter Fox-Penner
Essential reading for understanding grid modernization in the context of decarbonization. - Our Renewable Future by Richard Heinberg & David Fridley
A practical overview of the challenges and tradeoffs involved in transitioning to renewables. - The Energy Switch: How Companies and Customers Are Transforming the Electrical Grid and the Future of Power by Peter Kelly-Detwiler
A forward-looking book that explores how technology and policy are reshaping power systems globally.
Key Websites & Tools
- U.S. Department of Energy (DOE)
Comprehensive hub for policy, data, and funding opportunities in energy development. - National Renewable Energy Laboratory (NREL)
Cutting-edge research and data tools on renewables, including rural and agrivoltaic applications. - US Energy Information Administration (EIA)
Independent statistical and analytical agency within the US Dept. of Energy - DSIRE (Database of State Incentives for Renewables & Efficiency)
The go-to resource for local and state-level energy policy and incentives. - American Planning Association (APA) – Environment, Natural Resources, and Energy Division
A membership forum to meet and collaborate with others involved in environmental or energy planning issues.
Key Reports
- “Global Energy Perspective” – McKinsey & Company
A data-driven review of the international energy industry.. - “Toward a Shared Zero-Carbon Energy Future: A Global Analysis of Rural Energy Cooperatives” (PDF) – Rocky Mountain Institute (RMI)
A focused report on energy resilience and decarbonization opportunities for rural areas. - “Solar @ Scale: A Local Government Guidebook for Improving Large-Scale Solar Development Outcomes” (PDF) – American Planning Association (APA) and International City/County Management Association (ICMA), Third Edition, December 2023.
A practical guide for local governments addressing land use and solar permitting. - “Battery Energy Storage Systems” (PDF) – Brian Ross, AICP, and Monika Vadali, PhD., American Planning Association Zoning Practice, March 2024.
The October Series:
- Week One: The Rural Energy Revolution: How Data Centers and AI Are Reshaping Electricity Demand in America’s Heartland
- Week Two: Wind Energy, Wildlife, and the New Rules of Rural Zoning
- Bonus Book Review: Reviving Rural America: How Clean Energy Can Power a New Renaissance — L. Michelle Moore’s Rural Renaissance: Revitalizing America’s Hometowns through Clean Power (Island Press, 2022)
- Week Three: Solar Energy, Farmland, and the Agrivoltaic Frontier
- Week Four: The Rural Energy Shift: Emerging Technologies That Build Local Resilience — Biomass, Geothermal, and Small Modular Reactors
- Month-end Bonus: The Rural Energy Stack: Layering Renewables for Resilience
Looking for more insights? These resources offer a starting point for anyone working to strengthen policy that works for rural communities—whether you’re a planner, council member, or community leader.
Behind the Bakken Boom – Back in 2012, we wrote about the unexpected surge of oil and gas production in North Dakota. This has been one of JCShepard.com’s most popular posts.
The Best Books for Rural Development and Planning in 2025
Check out the Community Guides on our Resources page.
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