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In the latest episode of the All Day Digital podcast, with Jeff Johnston, Cologix CFO, Scott Schneider, breaks down the critical distinctions between AI training and inference workloads that are reshaping the digital infrastructure market. Schneider explains how training facilities – the powerhouse operations that build large language models – are strategically positioning themselves in rural America to capitalize on abundant power resources and favorable economics, while inference workloads will eventually disperse closer to end users for latency-sensitive applications.
For rural communities concerned about the permanence of these massive investments, Schneider delivers reassuring news: these facilities aren’t going anywhere. Training is an ongoing process, not a one-time exercise, ensuring sustained demand for these gigawatt campuses. Moreover, successful deployments create a follow-the-leader effect, where additional operators examine what made a location attractive, potentially bringing expanded development opportunities.
The economic development implications extend far beyond the primary tenant. Schneider outlines how data center campuses generate demand for auxiliary services – from fuel delivery and landscaping to specialized electrical and HVAC contractors – creating a robust ecosystem of opportunities for local businesses.
Perhaps most striking is Schneider’s revelation about water usage: modern data centers have achieved a staggering 99% reduction in water consumption compared to facilities from just 15 years ago. Today’s closed-loop cooling systems eliminate the water-intensive evaporative cooling of the past, requiring only an initial fill and periodic glycol maintenance.
For rural broadband operators, the data center boom represents a significant tailwind. Schneider emphasizes how operators value local expertise and market knowledge, creating partnership opportunities for connectivity between distributed campuses and redundant networking infrastructure. This combination of technological evolution, economic permanence, and ecosystem development positions rural America at the forefront of the AI-driven digital infrastructure revolution.
