Developers of data centers target rural America but face widespread opposition, pushback among local residents

Massive high-impact data centers are threatening to invade rural America and 

developers are facing growing opposition from residents. (Geoffrey Moffett, Unsplash)

BURGIN, Ky. — Residents of this small Mercer County town are up in arms over their city council’s refusal to accept public comments against a proposed data center. Two Lexington television stations and social media posts from those in attendance report that the council ignored a raucous overflow crowd at the local school and approved the first reading of an ordinance annexing enough land to double the size of the city to accommodate the center. A second reading was scheduled to push through the annexation. Burgin has no planning and zoning laws, and the council can respond to annexation requests from property owners.

The Burgin controversy is among the most recent in rural America’s battles over the construction of data centers, the workhorses of the expanding digital age. Brookings reports that increased demand for the energy to operate artificial intelligence (AI) has rural communities “weighing promised economic gains against short-and long-term costs related to land-use change, water demand, electrical grids, and public services.”

In the Kansas Reflector, columnist Max McCoy shared the story of a late June public hearing in Emporia that also was heavily attended by opponents of a proposed center there. Activists petitioned the city to “adopt an ordinance banning high-impact data centers or to put the measure to a public vote.” The headline to his column urges politicians to “take heed” of a growing national coalition against the centers.

And in Triple Pundit Tina Casey says the issue is pitting the ultra-rich against ordinary Americans and is quickly becoming a midterm election issue. She cites a June Ipsos poll that claims only 14 percent of Americans would welcome a data center to their community.

Amazon aims to reach more customers with a $4 billion investment in rural services

Amazon expansion is expected to create over 100,000 jobs.
(Photo by Adobe Stock)

Amazon is investing $4 billion to expand their rural delivery services, according to the company's senior vice president of worldwide operations, Udit Madan.

The investment is meant to focus on small towns across the U.S. and bring faster delivery to “many millions of customers in less densely populated areas.” Madan wrote, “At a time where many logistics providers are backing away from serving rural customers because of cost to serve, we are stepping up our investment . . . .”

The online e-commerce website PYMNT reported that in 2024 Amazon had “leased, bought or announced plans for over 16 million square feet of new warehouse space in the U.S … adding to its existing footprint of about 413 million square feet of industrial real estate across the country.”

Madan said the expansion would mean more than 200 added delivery stations in rural areas.

Amazon said they want to support local businesses
while reaching customers in more rural areas.
(Photo by ANIRUDH, Unsplash)

“Local businesses like coffee shops and florists can deliver Amazon packages through the Hub Delivery program. Partners can make up to $27,000 in incremental income a year, and help deliver to our customers in smaller towns,” Madan wrote.

The rural investment will help the company reach new customers in 13,000 ZIP codes over a 1.2 million square mile area. The expansion will also create an estimated 100,000 or more new jobs in the company.

Working on behalf of an unknown data company, an electric utility plans to build a natural gas plant in rural Louisiana

The gas-fired power plant would increase greenhouse
gas emissions. (LED photo via Floodlight)

Electric utility Entergy wants to build a $3.2 billion natural gas plant in rural northeast Louisiana to provide energy for an unnamed company's data center. Some people are "calling the development a 'godsend' for the region, where one in five people live in poverty," reports Pam Radtke of Floodlight. However, environmental and economic concerns have left some officials and residents questioning the viability of a project that creates more fossil fuel emissions and could result in electricity rate hikes.

Whit Cox, regulatory director of the Southern Renewable Energy Association, told Radtke, "Entergy is proposing to add huge amounts of greenhouse gas emissions." Radtke adds, "And a Louisiana utility consumer group questions whether the cost of the new plants will be passed onto residential customers."

If Entergy's construction is green-lighted by the Louisiana Public Service Commission, "Louisiana would join a cohort of states building natural gas power plants to meet the pressing demand for electricity to run data centers being built by Amazon, Meta, Google and others," Radtke reports. "Data centers are forecast to account for up to 12% of all U.S. electricity demand by 2030."

Like other plants intended to feed energy-guzzling AI owned by data behemoths, Entergy's project targets land in small-town rural America where good-paying jobs can be hard to come by and land is cheap. "In its filings, Entergy says the data center will employ 300 to 500 people with an average salary of $82,000," Radtke adds. "The utility calls the development a 'game changer' that will bring a 'historic investment' to the region."

Even if environmental concerns are put to rest, Louisiana residents are worried the plant could drive up their utility bills. "Costs not paid by the data center, either through electricity rates or separate agreements, would be spread across Entergy’s 1.1 million Louisiana customers, although the utility says the proposed deal 'largely insulates [Entergy’s] other customers from paying for the upgrades required' for the data center," Radtke reports. "The PSC will take up the project for the first time [this month] as it considers hiring outside consultants to help evaluate the proposal."

This small town's residents battled over a giant data center campus. It's a drama happening across rural America.

Giant tech companies often seek out data-center land in
rural towns. The sites feed the AI industry.

When big tech companies look for cheap land and energy to house and feed giant data campuses, they often shop in rural America. In the small town of Peculiar, Missouri, many residents worked to reject a data center proposal by developer Diode Ventures, which represented a secret corporate tech giant.

Their refusal to allow the land planned for the data site to be rezoned pitted residents against each other and their town officials, reports Eli Tan of The New York Times. "Residents described a web of distrust filled with nondisclosure agreements, hurt feelings and a mysterious entity vying to become the town’s new neighbor."

Executives from Diode Ventures plied residents and town officials with promises of an economic "boon," but some folk weren't sure. Becky Wiseman, whose property would border the Peculiar site, and her neighbors "decided to visit data center campuses for Meta and Google in Nebraska and Iowa, which were also 'hyperscale' like the one proposed in Peculiar," Tan writes. "When they arrived, they were terrified at what they saw and heard — the constant hum of generators behind guard towers."

With that, the stage for a David and Goliath battle between concerned residents and Diode supporters was set. "Signs that read 'No Data Centers' sprouted up in yards and windows across town," Tan reports. "So many people started showing up at planning and zoning meetings that Peculiar officials had to move them from City Hall to the Lions Club, a larger venue a mile down the road."

Diode executives were caught off-guard by some of the town's intense resistance. "Behind the scenes, Diode had been working with Peculiar’s mayor, Doug Stark, and city administrator, Mickey Ary," Tan explains. "Over virtual meetings and lunches at City Hall with Stark and Ary, Diode executives laid out a plan to win over Peculiar’s hearts and minds."

Proposal debates and bickering raged on in Peculiar until the aldermen voted this past September. "By unanimous decision, the data center zoning was rejected. It is unclear where Diode will take its project," Tan reports. But Peculiar's conflict isn't unique. The same saga is "playing out in small towns across the country as tech giants look to build hundreds of new data centers — often lured by tax abatements — to house the thousands of computers that would power the booming and energy-intensive artificial intelligence industry."

Opinion: Virginia county resists growth to maintain its rural character and countryside

Civil War monuments at Culpeper National Cemetery
(National Cemetery Administration photo)

As urban sprawl and industrial developments eat up Virginia countryside, Rappahannock County turns against the tide to remain a quiet, rural area with a protected "view shed," writes Dana Milbank in his opinion piece for The Washington Post.

Culpeper National Cemetery sits on a corner of land in Culpepper, Virginia, and there you will find "the final resting place for about 1,300 Union soldiers killed in the Civil War. Stone monuments honor regiments from Maine, Massachusetts, New York, Ohio and Pennsylvania that fought the battles of Cedar Mountain, Brandy Station and others nearby," Milbank explains. "But these hallowed grounds are about to become a monument to something else: the destruction of the American countryside.

"Look east from the cemetery, to an adjacent field where cattle graze, birds sing and a brook babbles: This will become a 116-acre data center housing 2.2 million square feet of massive structures with concrete walls up to 70 feet high. Look to the south from the cemetery at another green field: Here will rise the electrical substation powering the 600-megawatt monster."

Rappahannock County, Va.
(Wikipedia map)

While other Virginia counties take the "easy dollars" developers are waving, Rappahannock County has a different goal: To remain a part of the state's "dead zone," Milbank writes. "Its board of supervisors has for years rejected almost all development, and its population hasn’t grown at all. With 7,348 residents in the 2020 census, Rappahannock has roughly the same population it had in 2000 — and in 1920, for that matter. Rappahannock fends off development with its 25-acre minimum zoning requirement."

Keir Whitson, vice chairman of the board of supervisors, told Milbank, "I don’t even want to talk about growth. It’s not a word that should be in our active vocabulary." Milbank adds, "Whitson even torpedoed a local philanthropist’s plan to build three dozen affordable housing units in the town of Washington, Va., the county seat. He forced the already modest development to reduce its size to 18 apartments and townhouses. . . . It was a tough decision to reject what was, for the county, a gift of free affordable housing. It followed an easier decision to reject a 53-unit rental property on the approach to Shenandoah National Park."

Rappahannock's refusal of development dollars keeps the county on a meager budget, but residents are willing to bear that burden instead of managing the demands of growth. "While Culpeper and other nearby counties surrender to development, tiny Rappahannock has built a firewall to preserve its rural way of life," Millbank writes. "Similar tensions between development and rural character are playing out across the country. . . . Rappahannock has a plan: no development."

Rappahannock residents seem "content to live in a place with few amenities, few services and few jobs if it means preserving their unhurried rural life, their tightknit community, their panoramic views and their abundant wildlife."

Whitson told Milbank, “People say to me, pretty consistently, ‘Come on, buddy, get over it. You know Rappahannock County’s got to change. I’m like, ‘No, it doesn’t.’ I understand change is inevitable, but in Rappahannock County, change can be tiny, tiny change.” Milbank writes, "To save our countryside, we’re going to need a lot more such leaders with the courage to think small."

New 'On the Front Porch' conversation features author who has written about the resilience of small towns

Elizabeth Currid-Halkett

Tony Pipa from "Reimagine Rural" and Brent Orrell of the American Enterprise Institute will host a discussion with Elizabeth Currid-Halkett author of The Overlooked Americans: The Resilience of Our Rural Towns and What It Means for Our Country on Thursday, April 4, from 10 to 11:30 a.m., E.T. The discussion is part of the "On the Front Porch" series about research on issues involving rural America. 

Despite a common narrative that rural America is poor and detached, Currid-Halkett uses data and interview research to trace how small towns are doing as well as — or better than — cities using homeownership, income and employment benchmarks.

She also shows how rural and urban Americans share core values — even on issues such as racism and environmental sustainability — revealing that the nation is less fractured by geography than many people believe. This session is available online here.

To learn more about struggles and triumphs in rural America, Brookings' offers a podcast called Reimagine Rural. It features Pipa traveling through rural America and explores small-town challenges for residents who live in it. 

Rural Mainstreet economy reports negative growth for the sixth month in a row

Economic challenges have led to below growth neutral
survey results. (Photo by L. Pound, The Packer)

Last summer, the Rural Mainstreet Index showed good economic growth. But after June 2023's high point of 56.9 on the 100-point scale, the survey's 10-state region reported continued decreases, with September marking the first month below growth neutral at 49.5 -- the term used for a "neutral" growth score of 50. The downward trend has continued over the past six months," reports The Packer, which covers the fresh produce industry. 

Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University issued a press release explaining the challenges facing farming and energy-dependent regions, saying: "Higher interest rates, weaker agriculture commodity prices and a credit squeeze are having a significant and negative impact on Rural Mainstreet businesses and Rural Mainstreet farmers."

"Almost three-fourths of bank CEOs named low farm-commodity prices as the biggest risk for farms in 2024," the release said, "And approximately 44% of bankers indicated that the financial positions of farmers in their area had weakened over the past six months."

Gross told The Packer: "This is the eighth time in the past nine months that the index has fallen below growth neutral. Higher borrowing costs, tighter credit conditions and weaker grain prices are having a negative impact on the purchases of farm equipment."

About RHI methodology: Each month, community bank presidents and CEOs in non-metro regions of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are surveyed on their unique economic conditions and projected outlook. The survey offers the most current real-time analysis of the U.S. rural economy, which gleans its data from about 200 rural communities with an average population of 1,300.

Money for clean-energy projects goes to former coal towns

Boston Metal will make clean-energy metals at the old Weirton
Steel location in W.Va. (Photo by Luke Sharrett, The New York Times)

From Weirton, West Virginia to Vernon, Texas, to Vandergrift, Pennsylvania, the Department of Energy is funding projects designed to help medium-sized manufacturers "bring clean-energy jobs to former coal communities," reports Hiroko Tabuchi of The New York Times. The infusion of cash is part of the Biden administration's effort to gain support for its climate agenda in regions that have long depended on the fossil fuel industry. The administration hopes that funding new jobs in energy can help coal workers and regional economies transition.

Hard work for decent pay and good benefits once defined U.S. coal mining jobs, but over the past decade, those jobs have disappeared. "These energy workers haven't been finding clean-energy jobs despite the rapid growth in industries like solar and wind," Tabuchi writes. "Coal workers, in particular, have struggled in the transition, a recent study found. "Less than a quarter of a percent of workers who left a fossil fuel job in West Virginia moved onto a job in renewable energy, said E. Mark Curtis, an economist at Wake Forest University who led the study. Education was another factor: Fossil fuel workers without a college degree were significantly less likely to find clean energy jobs."

Curtis told Tabuchi: "In places like Texas or in the middle of the country where there's a lot of solar and wind, fossil fuel communities are relatively well positioned to take advantage of renewables. Coal communities generally don't have that, especially when you think about Appalachia." Tabuchi reports, "He said it made sense for government funding to target former coal regions and to focus on manufacturing projects because data showed that former fossil fuel workers most frequently sought to switch to manufacturing jobs."

The DOE grant program aims to help the U.S. become more competitive in the clean-energy manufacturing sector while using the $275 million investment to revitalize former coal towns' economies. The companies building the new plants said "they are eager to tap local expertise," Tabuchi reports. Tadeu Carneiro, the chief executive of Boston Metal, told him: "The most valuable asset for the project is a legacy workforce that has played a significant role in the U.S. metals industry." Tabuchi adds, "Its new West Virginia plant expects to hire 200 to 250 people and will manufacture ultra pure chromium metal and high-temperature alloys that are critical materials needed for clean power, fuel cells, and steel. Currently, foreign manufacturers dominate those materials."

Philanthropy organizations can help rural companies fill skilled labor positions through internships, other programs

A student intern at KEITH in Madras, Oregon.
(KEITH courtesy photo via The Daily Yonder)

Over the past two decades, finding and retaining skilled manufacturing talent has become increasingly difficult. The challenges seen at KEITH Manufacturing Company in Madas, Oregon, are similar to other areas of the country where the sector can't find enough workers, reports Nick Flouriezos of The Daily Yonder. Mike Feigner, KEITH's plant manager, told him, "I've been doing this job since 2006, and it seems like you always have a labor problem. . . . We suck up a lot of that skilled labor that is a great fit for us quickly, and then we're trying to fit it with other people who maybe aren't looking for that long-term commitment to learning those skills."

If companies can't find long-term workers, retention and training soak up more company resources. "The company has no choice but to train and support homegrown talent if it wants to continue producing the self-unloading conveyor belt system that has become a staple in waste and recycling trucks worldwide," Flouriezos explains. "One thing that’s helped? A partnership with Oregon STEM and its Spark Oregon earn-and-learn initiative that helped pay for KEITH to employ four local high school interns for the summer."

Madras, pop. 7,500, is located in
Jefferson County, Ore. (Wikipedia map)

Earn-and-learn money "helped the students justify doing the internship when they could have been making more working full-time at the local McDonald's for the summer, Feigner says. Working three days a week for two months, the students were exposed to everything from welding and forklifts to assembly and engineering work with the R&D team," Flouriezos reports. At the end of the first internship, the company was able to hire one of the interns. Feigner told him, "I think this is exactly what the country needs. . . .Even if we get one student every two or three years that ends up being a direct-hire, I would call that a win."

What worked in Oregon exemplifies the ingenuity many philanthropy organizations use to address shortages. "Philanthropies with a technology focus or background have been particularly creative in funding education and workforce programs," Fouriezos adds. "That’s fitting, says Matt Dunne, executive director of the Center on Rural Innovation based in his hometown of Hartland, Vt." Dune told Fouriezos: “If you dig into it, a lot of it has to do with the economy and the impacts that a completely unequal recovery from the 2008 recession led to. And if you look at the driver of that divide, it really comes down to the winners and losers of the knowledge economy driven by technology."

At times, philanthropy can do what government or private funding cannot. Josh Elder, vice president and head of grant-making at The Siegel Family Endowment, told Fouriezos: "We embrace the idea that philanthropy should operate as society’s risk capital. . . . We want to be able to support early-stage things that others might not look at."

Rural towns facing meat plant closures struggle to find a new path forward

Noel officials hope that recreation options can fill some
economic losses. (Photo by Harlan Bozeman,WSJ)

Over the next few months, six rural counties will face Tyson chicken plant closures, with residents, small-business owners and county officials facing tough choices," reports Patrick Thomas of The Wall Street Journal. Tyson is one of many companies shrinking its operations. "Meat processors are closing plants across the country in response to what they say is slackening consumer demand and persistently high costs for livestock, feed and wages."

The Tyson plant in Noel, Missouri, pop. 2,220, will close this month. While many employees have already quit and left town, small-business owners like Angel Saldivar are also considering leaving. "Saldivar​ wasn't among the 1,500 Tyson workers affected by the plant's shutdown," Thomas writes. "He and his family run a restaurant across the street, Tony's Burritos, which his grandmother opened in the 1990s as a lunch spot for plant employees. With the plant scheduled to close by mid-October, Saldivar says Tony's probably will, too. . . . Tony's sales have fallen 40% to 50% from August."

Noel is one of several towns facing plant closure fallouts. "Poultry company Perdue Farms said in August it was closing a meat plant in Michigan that employs 130 people, and pork giant Smithfield Foods closed a 1,800-person California facility this year," Thomas explains. "The closures spell economic turbulence for towns such as Noel, where meatpacking plants are major employers, customers of local farmers and truckers, and cornerstones of the tax base."

It can take years for a rural town's economy to rebound from a plant closure, and some do not recover. "In Plainview, Texas, agriculture giant Cargill a decade ago closed a beef plant, the town's largest employer with more than 2,000 workers," Thomas reports. "Charles Starnes, Plainview's mayor, said restaurants and other businesses around the plant laid off staff or closed completely, leading to about 3,000 total jobs lost in Plainview. The city's population has declined by about 2,000 people since the year the plant closed, he said."

In some areas, a plant's closure could open the door for new opportunities. Thomas writes, "For Noel, local officials said that without the plant's noxious smells, the city's location on the Elk River in southwest Missouri could make it a more popular tourist destination and attract outdoor activities such as kayaking. Lance said the site could attract a new hotel or a casino."

Auto industry moves South with electric vehicle factories; one rural town of 400 gets ready for 6,000 Ford workers

Business has picked up at Suga’s Diner in Stanton, Tenn.
(Photo by Andrea Morales, The Wall Street Journal)

How does a town of 400 people prepare for an influx of 6,000 additional residents? Stanton, Tennessee, is showing the way as the town readies for “all the people the Ford plant auto-complex build will bring,” reports Nora Eckert of The Wall Street Journal. Ford’s complex is a sign of the times: “The U.S. auto industry is accelerating its move south as car companies pour billions of dollars into new factories in Georgia, Kentucky and Tennessee. The shift is creating pockets of frenzied activity—and anxiety—for rural, southern towns bracing for new workers and residents.”

“Once fully operational, Ford’s 3,600-acre site is expected to employ about 6,000 workers, about 15 times Stanton’s current population,” Eckert writes. “Allan Sterbinsky, the mayor of Stanton, spends his days planning how the town—home to a barbecue restaurant, a Dollar General and a couple of cemeteries—will build thousands of new homes, expand the local school system and potentially establish a police force.” Sterbinsky told Eckert, “It’s tremendously overwhelming, just everything that has to be done.”

As America's shift to EVs gained momentum, the auto industry’s move South increased speed. “Auto companies have announced more than $110 billion in EV-related investments in the U.S. since 2018, with about half that sum destined for Southern states, according to the Center for Automotive Research, a nonprofit based in Ann Arbor, Michigan," Eckert adds. "Automakers are now rushing to construct assembly plants and battery-making facilities—some sitting on sites the size of 60 football fields.”

Location of Stanton in Haywood County,
Tennessee. (Wikipedia map)

For decades, Southern states have been setting the groundwork to attract automakers, “laying veins of waterways and electrical lines and shoveling heaps of dirt to prepare the land for potential new factory megasites," Eckert reports. "Local governments and technical institutes have partnered to train a new generation of manufacturing workers, including in automotive, even before some of the first construction beams were erected. "Ford Chief Jim Farley said one of the reasons the automaker based its manufacturing campus in Tennessee is because the Tennessee Valley Authority, an electricity company, is one of the largest clean-energy providers in the U.S. The state’s lower energy costs also attracted Ford there, he has said."

Meanwhile, folks in Stanton and surrounding towns of Haywood County, pop. 17,900, have their hands full. "The median household income in Haywood County, where the Ford complex is located, is about $40,000. One in five residents live in poverty," Eckert reports. Already some local restaurants and services are enjoying growth, but for some, Ford's presence has hurt their business. "Teknor Apex, a chemical producer and major employer in the county, was already struggling to find workers. . . . Many young people in the area end up leaving for better pay and a greater variety of opportunities elsewhere, draining the local talent pool."

Rural areas still have fewer jobs than 13 years ago; federal program for regional coalitions isn't very rural-centric

Rural employment has not recovered to the levels of the Great Recession, which ended over 13 years ago, while metropolitan areas have made steady gains. To help rural areas, they were targeted by an Economic Development Administration grant program that funded 21 regional coalitions. But only three of the 21 regional coalitions are both rural-centric and rural-led, report Anthony F. Pipa and Zoe Swarzenski of the Brookings Institution.

The EDA's financial awards flowed through the $1 billion Build Back Better Regional Challenge, which is aimed at creating rural opportunities by leveraging regional collaboration, Pipa and Swarzenski write. "Yet formulating a regional cluster approach that is effective in benefiting rural places requires sensitivity to a complex set of dynamics. Almost by definition, a focus on industry clusters puts metropolitan areas at the center. . . . EDA acknowledged that clusters are likely to follow a traditional hub-and-spoke model, where a metro area acts as a central hub for a coalition that reaches into or engages other communities."

The regional model does not lend itself to inherently rural challenges, they write: "Rural places are often less than full partners in regional coalitions; intentional interventions to meet their unique challenges related to governance capacity, distance, workforce, and access to capital are frequently necessary to enable them to receive proportionate benefits. Program parameters can also play a role. Matching funds requirements, for example, immediately place a substantial burden on rural and tribal places, which often have less fiscal buffer and less access to outside resources."

The Build Back Better Regional Challenge gave five-year grants of $25 million to $65 million to 21 regional coalitions, after choosing 60 finalists from 529 initial applications. "To better understand the extent to which rural areas were included among the 60 finalists that received $500,000 planning awards, we experimented with different quantitative approaches, which yielded very different impressions of the level of rurality," Pipa and Swarzenski report. When rural areas applied using a "'Rural County Share' where each applicant used a defined geographic service area that would benefit from the proposed strategy, 11 became awardees—more than half of the final set of successful applicants. . . But when 'Rural Population Share' was used to measure the proportion of rural people served, only two became awardees, less than 10 percent of the final set of awardees."

Pipa and Swarzenshi divided the pool of applicants into three major categories, defined as Rural-Led, Rural-Centered, Metro-Led, Rural-Relevant, and Metro-Led, Metro-Centered. They report, "While a laudable number of applicants cast a wide net and included rural places in their geographic service areas, the density of population in the urban areas serving as hubs for their regional coalitions suggests a strong magnetic pull that creates a nexus of political attention, leadership, decisionmaking, and beneficiaries."

Their recommendations for the EDA "to help advance the equitable participation and integration of rural places into future efforts to incentivize and support regional strategies include "incorporating rural expertise and qualitative analysis to assess rural relevance, establishing rural set-asides or preferences, Modifying program design to promote innovative practices incorporating rural places, increasing transparency about the participation of rural places."

A tale of two towns and dollar stores: One blocked Dollar General, one allowed it on 3-2 vote; local merchants worry

Leelanau County is the pinkie finger
of Michigan's mitt. (Wikipedia map)

What does a dollar store add to a small community, or perhaps take from it? That can be a loaded question.

In Leelanau County, Michigan, in 2019, residents got the zoning board to shut out Dollar General Corp.'s plans to build in the county seat of Empire  because the chain's reputation and look did not "fit" with their quaint, small-town vibe, and it's now the only Michigan county without a dollar store, reports Rose White of MLive, a Michigan newspaper chain. “Chain dollar stores tend to target food deserts like Empire . . . providing a limited selection of food to city neighborhoods or rural areas,” White writes, citing a report by the Institute for Local Self-Reliance.

Sperling's Best Places map

The dollar-store drama is playing out differently in Ebony, Virginia,  where some residents did not welcome Dollar General because they worried the store would "open the door to additional development that will spoil the character of their tiny, rural community of about 230 people," reports Michael Corkery of The New York Times. But not all the residents thought the chain would harm their town. "Jerry Jones grew up in Ebony. . . . He went on to manage grocery stores and later owned a gas station in Ebon. . . . Jones owns the land where the Dollar General would be built. He said the store would provide the county’s residents a convenient and affordable place to shop while also generating sorely needed tax revenue." Jones told Corkery: “You still need to have that balance between the people with nicer things and the people who live paycheck to paycheck. To me, Dollar General fits right in with that.”

The two places have some similarities; one big difference is that Empire is a summer tourist town where "quaint feel" has a financial impact. "Ebony sits on the edge of Lake Gaston and is a haven for second homes that serve as an important tax base" in Brunswick County, which has a median household income of $49,600, about the same as Leelanau's, but well under Virginia's statewide figure of $80,600, Cockery reports. "More than half the county’s population is Black." Only one-fourth of 1 percent of Leelanau County's is.

Brunswick County supervisors, by a 3-2 vote, "approved a zoning change that would allow the store to be built," Cockery reports. "The dispute in Ebony, which has been going on for more than three years, is about planning and zoning, but it also touches on a deeper issue simmering in many parts of rural America, whether the disputes are about cellphone towers or snowmobile trails. What does 'country' mean to different people in a small community?" Cockery asks.

But Dollar General is not winning everywhere. "The number of communities that are defeating specific dollar-store proposals or are enacting ordinances that control dollar store development is shooting up rapidly,” Kennedy Smith, a senior researcher at the Institute for Local Self-Reliance, told White. Much of the opposition comes from local business owners like Mohamed Abouemara, who "moved to southern Virginia from New York to operate convenience stores and has run the Ebony General Store for nine years," Corkery reports. "He said his store, where locals can socialize and buy hot food, played an important role in a rural community. A dollar store, he said, would significantly hurt his business."

Placemaking in Small & Rural Communities Conference returns for a second installment May 23; it's free and online

To register for the conference, click here.

On Tuesday, May 23, the Placemaking in Small & Rural Communities Conference returns. Jeff Siegler, founder of Revitalize or Die, will discuss paths to developing civic pride in your unique community. The event will feature additional speakers from the "all things local placemaking" world. The conference is online from 10 a.m. to 4 p.m. ET, and is free. Register here. 

To get started on placemaking now, try the Rural America Placemaking Toolkit. It's is a dynamic, interactive website that provides education, resources, activities, and tools on rural placemaking. This website links information seekers with technical-assistance providers, financial-assistance providers, and how-to guides on implementing placemaking in their own communities. The toolkit and the conference are sponsored by USDA Rural Development and the University of Kentucky.

Neighbors, heroes and leaders are helping southeastern Kentucky recover from last summer's record flooding

By Al Cross

Director and Professor, Institute for Rural Journalism and Community Issues, University of Kentucky

HAZARD, Ky. -- How does one of the nation's poorest rural regions recover from the most disastrous flooding some of its communities have ever seen? "Neighbors, heroes and leaders."

That answer was the three-legged theme sounded repeatedly by Peter Hille, chair of the East Kentucky Leadership Foundation, at its annual conference in Hazard Thursday and Friday -- exactly nine months after the flash floods left many in southeastern Kentucky wondering about their region's future.

The 35th annual East Kentucky Leadership Conference made clear that the disaster had created a greater sense of community among neighbors, some of whom responded by becoming heroes and leaders. Several were spotlighted in the annual East Kentucky Leadership Awards:

• Kate Clemons of Hazard, who didn't know anyone in Knott County but organized free-food distribution there immediately after the flood and is still running a food center in Hindman;
• Whitesburg firefighter Charles "Red" Colwell, who can't swim but rescued 14 people from deep, rushing floodwaters and is now chief of the department in the Letcher County seat;
• Nathan Day of Knott County, who rescued nine people and told Hazard's WYMT, “I just feel like if everyone would open their doors and open their hearts, this world would be a better place.” 
• Gwen Johnson of the Hemphill Community Center in Letcher County, a distribution site for supplies and place of refuge and healing space where people could gather to feel a sense of community;
• Donna Campbell and the Lost Creek Fire Department in Perry County, which rescued people and served as a distribution center for supplies, and is organizing rebuilding of homes;
• The Rousseau Volunteer Fire Department in Breathitt County, which rescued 15 people, including 12 in an attic, and has helped more than 4,000 families;
• Scott McReynolds and the Housing Development Alliance, which helped preserve 41 homes, repaired 31 and placed six families in new homes, and has applicaitons for 120 more.
• Gerry Roll and the Foundation for Appalachian Kentucky, which has raised more than $7.4 million for flood relief and has written more than 8,000 checks.

For each plaque handed out Thursday night, 10 to 20 more people or organizations deserve the same recognition, McReynolds told the crowd at Hazard Community and Technical College.

Roll, CEO of the foundation, said in accepting its award, "We're here for you. We are you, you are us. That's what community is."

This sign welcomed conferemce attendees.

The foundation and other philanthropies made major differences in the recovery, said Lynn Knight, an economic development consultant in Washington and New Orleans who has done much post-disaster work and attended the conference.

Knight also told the Institute for Rural Journalism that the region is fortunate to have several community development finance institutions, such as Hille's Mountain Association and the Kentucky Highlands Investment Corp., which can play a role in financing the recovery. The combination of CDFIs and philanthropy make the region unique, she said.

The disaster has helped some local governments and officials overcome political and geographic rivalries that have often impeded progress in the region

"The biggest success we've had is tearing down the walls" between local governments, said Perry County Judge-Executive Scott Alexander, quoting Hazard Mayor Donald "Happy" Mobelini as saying that "If something's good for the city, it's good for the county, and if something's good for the county, it's good for the city."

Alexander said Friday morning that should also apply to competition between counties for jobs. "There's nothing wrong with somebody living in Perry County and working in Knott County," he said. "So let's look at Appalachia as a whole. Let's tear those barriers down."

Much of the conference was devoted to the experiences, opinions and hopes of high-school students in the region, which will be the topic of future reports from the Institute for Rural Journalism.

The reporting is being done by Ivy Brashear in her role as the Institute's first David Hawpe Fellow in Appalachian Reporting, named for the late Louisville Courier Journal editor who was born in Pike County and was the newspaper's East Kentucky Bureau chief in the late 1960s and early 1970s.

The fellowship is for students at the University of Kentucky, Hawpe's alma mater. Brashear, a native of Perry County, is a Ph.D. student in the UK College of Communication and Information. If you have story ideas for her, you may email her here.

Why U.S. rural policy matters: An essayist's response to readers, and thoughts on 'rural rage' and anti-rural rage

By Anthony F. Pipa
Brookings Institution

On Dec. 27, 2022, the New York Times published an essay I wrote calling for a renaissance in federal rural policy. My motivation for writing the article was borne from a frustration of the media’s obsession with rural politics—that is, who in rural America is voting for whom, and why—with little regard or attention to rural policy, or how federal, state, and local governments could do things differently to help rural places to thrive.

Federal policy has historically played an important role in helping rural places contribute to American economic and social life, but it is no longer fit for purpose. This is leaving rural places starved for investment as they navigate 21st century shifts in the economy and seek to become more vibrant, inclusive, and sustainable. The essay included a call for a national rural policy to help “put local assets to creative use, unleash entrepreneurial activity, share the benefits widely and retain the value locally.”

Tony Pipa

It resulted in almost 1,700 comments from readers and a flood of reactions in my inbox. “Don’t read the comments,” counseled colleagues, warning against the rabbit hole of negativity. Yet many comments surfaced thoughtful questions and gaps, and in the spirit of advancing a policy discourse, I offer responses to several of the themes that emerged:

1. “Ask rural places what they want.”

Some commenters read my call for a more active and effective federal role as a recommendation to overtake and usurp local agency and authority. To the contrary: Sustainable development frameworks are most successful when local people design, direct, own, and execute the solutions to the problems they are facing.

So I wholeheartedly agree with asking rural people, and ensuring that the federal government invests much more directly in local leaders and their innovation. But the federal government should also provide incentives or boundaries to ensure maximum public benefit in line with national policy priorities. This might mean incentivizing cleaner energy sources or ensuring that minority populations who have been politically marginalized in the past are included in the design or decision making of new development efforts, so the benefits are widely shared.

2. “What about the role of state and local governments?”

Several commenters rightly surfaced questions about the importance of state and local governments to the well-being of rural communities. State governments set the parameters of their local jurisdictions’ taxing and legal authorities, provide revenue, and are often the decision makers on how federal funds are spent. For example, about 45 percent of the resources in the Infrastructure Investment and Jobs Act (IIJA) will be decided by state and local governments.

States are increasingly limiting the flexibility of local jurisdictions and sharing less of their resources, moves generally attributed to political differences between state leaders and large metros. Yet such shifts can have negative consequences for local rural governments, as evidenced by the impact of the tax cuts enacted in Kansas. Some rural leaders are recognizing that state policies driven primarily by culture wars could have negative consequences for their communities. The impact on local rural governments of state policy changes driven by tensions with metropolitan governments is an area ripe for further research.

In general, the capacity of local rural governments is significantly constrained, especially compared to their suburban and urban counterparts. In a recent survey of rural county officials, fifty-two percent reported that their governments experience “moderate” or “significant” levels of fiscal stress. Rural governments are often led by volunteer, part-time elected officials and thinly staffed town halls, struggling to provide basic services and possessing limited ability to respond to major economic or social shocks. For more rural places to succeed, we must strengthen the ability of local governments to govern.

3. “Big business is killing rural.”

Readers pointed to the impact of big-box chains and national franchises on locally owned businesses. Yet national retail and restaurant chains are simply emblematic of larger trends toward financialization and corporate consolidation that have challenged many local institutions that traditionally create a sense of security and self-sufficiency.

Sixty-eight percent of counties without a daily or weekly newspaper are non-metro. Forty percent of rural counties lost bank branches between 2012-2017, and 190 rural hospitals have closed or converted since 2005. Local leaders in rural communities now try to attract stores such as Walmart and Dollar General, not only to improve access to groceries, but because it provides jobs and a signal to the market that their community is worthy of investment.

4. “It’s not just rural: What about other places that are lagging?”

Many small and mid-sized cities in former industrial centers are also facing challenges, leading some to suggest less focus on rural and more on lagging places overall. Indeed, the future of many rural places will be linked to their nearest metros. But rural places are often minimized in regional efforts, resulting in distrust and approaches that fail to meet their unique challenges related to governance, distance, workforce, and access to capital. Perhaps a national rural strategy would ultimately be a subset of a national economic strategy—but leveling the playing field depends upon articulating one.

Unfortunately, the bulk of the comments expressed negative views dismissive of rural America, with many opposed to any targeted policy.

One set asked “Why should we care about those people and places?” This ignores the important inter-dependencies between non-metros and the rest of the country. As the country seeks to address climate change, for example, and shift to a clean energy economy, rural places will be where the solar and wind farms are sited, the minerals for batteries are mined and the batteries themselves produced, and where agricultural practices evolve to reduce methane gases.

Indeed, rural places are implicated in many dimensions of the 21st-century economy, from data processing to fabrication plants to cryptocurrency mining to online retail distribution. How these economies evolve, who benefits, and how well communities manage them—these are clear and present policy issues that are receiving little attention, leaving rural places to their own devices and offering few guardrails to prevent a modern version of the extractive arrangements prevalent throughout history.

Even more heated were the comments suggesting “it’s their own fault:” i.e., that rural people are getting what they deserve, their votes the primary cause of what they are experiencing. This has odd echoes of the arguments wielded against single mothers during welfare reform debates—ascribing all bad outcomes to bad choices—an argument that was dehumanizing then, and is dehumanizing now.

Several weeks after my essay, the Times published an editorial by Paul Krugman asking what could assuage “rural rage”? While the essay made a tentative foray into exploring the implications of, and offering support for, newly enacted policy, the image that rural residents go through their daily lives filled with fury left even local Democratic leaders in so-called Trump country shaking their heads. Such a broad brush conveniently thwarts consideration that policy decisions associated with trade agreements, the movement of capital, enforcement of anti-trust legislation, and regulation of transportation may have played major roles in abetting the challenges rural places now face -- p olicy decisions, I might add, that many rural people didn’t control or necessarily vote for.

Getting past the “anti-rural rage” and the vitriol reflected in the reactions to my essay will be as important as addressing whatever resentment rural people are harboring. When I listen to the stories of real people in rural places working to provide the best for their families and communities, I find commonalities that cut across the divisions defined and deepened by the obsession with rural politics. So my final response to readers is where I began: We urgently need a constructive bipartisan dialogue to consider policy solutions that can enable thriving, sustainable economic and social structures and create opportunity in all sizes of places across America—and specifically rural ones.

Revitalization plan in Danville, Va., pop. 42,000, generated skepticism, but now it's a model for other communities

Main Street in Danville (Photo by Rick Barker Properties)

The Industrial Development Authority in Danville, Virginia, "bought old, empty buildings — sometimes at above-market prices — with the goal of selling them to developers. The strategy drew some criticism over the years, but local leaders believe it’s paid off in increased tax revenues and new vitality for previously depressed areas of the city," Grace Mamon reports for Cardinal News, which reports on Southwest and Southside Virginia.

"Locals say that Craghead Street used to be like a ghost town, and now it’s home to restaurants, apartments, a brewery and a science center. The city’s downtown, called the River District, alone has seen about $300 million in public and private investment in the last decade," Mamon reports.

The IDA's approach began with buying old Dan River Mills properties "after the industry left in 2006, depressing the local economy," Mamon notes. Then it expanded the strategy to non-mill buildings, especially in blocks occupied by tobacco warehouses, another industry that declined, because many absentee owners weren't inetrested in redevelopment.

Corrie Bobe, Danville’s economic development director, recalled the skepticism: “People said, ‘Why are you spending so much money in one central area when there are other needs throughout the entire community?’” However, "Cut city officials believed that targeting the River District was a priority, predicting that a vibrant downtown would spur growth and redevelopment in other areas," Mamon reports, noting that "Ignoring downtown redevelopment had cost the city in the past."

She recalls the story of a manufacturing CEO who made an unannounced visit with his wife:  “They took one drive up Main Street and saw a bunch of boarded-up buildings, no one there, this dead downtown,” said Telly Tucker, economic-development director from 2004 to 2020. “It didn’t take long for them to say, ‘This is not the place where we want to put our business.’” She told Mamon that the loss of that opportunity was painful, but also was “a blessing to hold that mirror up.”

Federal and state officials erased a Black cemetery; their only public notice was a legal ad too many people missed

Mike and David Moseley at an ancestor's grave
(Photo by Christopher Smith for ProPublica)

Construction site excavators often unearth surprises, but what comes after the find can be more disturbing.

"Nobody working to bring a $346 million Microsoft project to rural Virginia expected to find graves in the woods . . . but surveyors happened upon a cemetery. The largest of the stones bore the name Stephen Moseley in a layer of cracking plaster. Another stone, in near perfect condition, belonged to Stephen’s toddler son," reports Christopher Smith for ProPublica.

"This is not as bad as it sounds," an engineering consultant wrote in March 2014 to Microsoft and an official in Mecklenburg County, Virginia, who was helping clear hurdles for the project — an expansion of a massive data center. "We should be able to relocate these graves." But archaeologists, which federal law required, said the cemetery was eligible for the National Register of Historic Places because it was for "a community of landowners who farmed tobacco in the wake of the Civil War and Reconstruction," Smith writes. Their report "stressed the cemetery’s significance to African American life and death, citing the fact that Stephen Moseley and his relatives were Black,' and advising: "It is recommended that the area be avoided."

The county and consultants challenged the recommendation. "They sent the report to another archaeologist, seeking a second opinion," Smith writes. "But the archaeologist didn’t go along. . . he rejected the notion that some of the people buried there might be white. 'Jim Crow would not have had whites and blacks buried that closely together,' he wrote. . . . He suggested that the original firm conduct additional historical research. 'More work needs to be done on Moseley family members to identify who’s in the graves,' he wrote in an email to Jones’ boss, who forwarded it to the county. . . . The county and its consultants ignored the advice."

The county and consultants continued to pursue the property for Microsoft. They "ran a legal notice tucked among the ads and classifieds in several weekly print editions of The Mecklenburg Sun," Smith reports. "The second week the notice ran, the paper published a front-page story [about another subject] under the byline Mike Moseley. Moseley is a staff writer. He is also Stephen Moseley’s great-grandson. . . . Mike Moseley would not have been hard to locate, had the county actually tried to find Stephen Moseley’s descendants." Mike Moseley told Smith, “Everyone who works for the county knows me. They know who we are. It’s hard to understand how they didn’t come talk to us.”

When Smith asked Moseley "if he’d seen the notice in the pages of his own newspaper, he responded: 'Do you read the classifieds and the ads? I do not.' . . . Like his nephew, David Moseley heard nothing from the county about the threat to the cemetery. The soft-spoken retired schoolteacher and administrator, who is now 85, grew up on the land adjacent to where Microsoft was building its data center." He told Smith, “Somebody would have called me if they moved the cemetery."

Smith reports, "In the months after the notice that ran in The Mecklenburg Sun, workers kept finding graves, ultimately 37 of them. . . . A crew dug up each of the graves, collecting bones, casket fragments, metal handles and hinges, etched epitaph plaques, a pair of eyeglasses, an ivory comb. The remains and other items were packed in plastic crates and stored in an office. Months later, all of it was reburied in four tightly packed, $500 cemetery plots one town to the north." The county did not reply to Smith's questions about the handling of the issue, Other than County Administrator Wayne Carter saying the newspaper notice was sufficient to comply with the law.

Smith writes: "In Mecklenburg County, before Microsoft took possession of the land — for free, with significant tax breaks, along with state development dollars earmarked for struggling tobacco farming regions — the Army Corps [of Engineers] raised no concerns about the development’s compliance with the [National Historic] Preservation Act. Nor did the Virginia Department of Historic Resources, the agency tasked with enforcing state and federal preservation laws, make any effort to step in and protect the site. . . . The Army Corps and the Department of Historic Resources facilitated the cemetery’s legal erasure."

David Moseley and other family members, "still own the eastern 83 acres of the property," Smith writes. "Every so often, David Moseley or another family member gets an offer to buy their remaining land. Sometimes the correspondence is signed by Wayne Carter, the county administrator who oversaw the permitting process for the Microsoft data center. David asked Smith, "If they can find us to buy the land, why couldn’t they find us for the cemetery?”

Fred McGhee, an African American archaeologist, told Smith: “We are among the only developed countries in the world that considers archaeological sites on private property to be private property themselves rather than cultural heritage. Black historic places are some of the first to get maligned.”

In a surprising shift, younger people are moving to Maine, but many of them struggle to find affordable housing

Maine's long winters could reverse population
gains.(Photo by Tristan Spinski, The New York Times)

In 2019, no one could have predicted a population swing into Maine, a state where deaths had long outnumbered births, reports Jenna Russell of The New York Times. "Population shifts — even small ones — carry high stakes in this rural, sparsely populated state. . . . . Maine had the oldest population in the nation in 2020. . . . But the latest census numbers suggest Maine has been thrown an unexpected lifeline. In a milestone few would have imagined, it was the only state in the country where the median age declined from 2020 to 2021, the state economist said, largely the result of younger people moving in."

That's good news for Maine, but here's the snag: "In every Maine county except one, 'the average house price is unaffordable to the average income household,' according to a report last fall by the state housing authority," Russell reports. "In Searsport, Maine, pop. 2,700, the effects of the influx have been far-reaching. Housing prices were already on the rise, but the sudden surge in interest from outsiders cranked up new pressure on the market. . . . The squeeze affects a wide spectrum of workers."

Russell writes: "The latest state budget proposed by Gov. Janet Mills includes $30 million for new affordable housing, targeting rural areas, on top of $70 million in new investments last year. . . . Experts say it is too soon to know if pandemic-driven population gains will continue, hold steady or dwindle . . . . Andrew Crawley, an economist at the University of Maine said school enrollment may be ticking up, but so far, the results are inconclusive." Crawley told Russell, "For now, it’s a blip, not a trend — but even as a blip, it’s incredible, and if it holds steady, then it’s huge. For those arguing we need more people, more nurses, more teachers, more plumbers, this is good news; the question is if it will continue."

New York Times map

Chris Gardner, a county commissioner who hopes the state will seize the moment and send recruiters nationwide to tout Maine’s charms, told Russell, “Rural America has been found again, and it’s an opportunity for us.” Russell opines, "New businesses bring new jobs, but the lack of housing can make workers hard to keep. Frustrated by job vacancies, one restaurant owner in Lincolnville, 20 miles south of Searsport, bought an inn last year to house employees — a solution few here can afford."

'Urban' now requires 5,000 people or 2,000 housing units; losing 'rural' designation could help some towns, hurt others

Gravette, Ark., pop. 3,547, was urban and is now rural.
(File photo by the Arkansas Democrat-Gazette)

About 1,100 U.S. towns with 4.2 million residents are now classified as rural, not urban, because the Bureau of the Census has changed the criteria it uses to make those distinctions, as it does after each census. This change is the biggest since 1910, reports Mike Schneider of The Associated Press. 

"The new criteria raised the population threshold from 2,500 to 5,000 people and housing units were added to the definition," Schneider reports. "The change matters because rural and urban areas often qualify for different types of federal funding for transportation, housing, health care, education and agriculture,"The federal government doesn’t have a standard definition of urban or rural, but the Census Bureau’s definition often provides a baseline."

Mary Craigle, chief of Montana’s Research and Information Services Bureau, told AP, “Places that qualify as urban are eligible for transportation dollars that rural areas aren’t, and then rural areas are eligible for dollars that urban areas are not.”

The change reflects the reduced economic vitality and diversity of small towns. North Carolina State Demographer Michael Cline told AP that in 1910, a town with 2,500 people had many more goods and services than a typical town that size today, “and these new definitions acknowledge that.”

The Census Bureau had proposed raising the urban threshold to 10,000 but retreated in the face of opposition. The 5,000 threshold means that slightly, to 79.6% of the U.S. population is urban and 20.4% is rural. Under the old criterion, almost 81% was urban, Schneider reports.

UPDATE, Jan. 6: The bureau told Josh Zumbrun of The Wall Street Journal that its old 2,500 threshold was “the lowest in use among all federal agencies. We see the change in our minimum threshold as signifying that the Census Bureau is listening to stakeholders and feedback from other agencies and is matching the way others have characterized and classified settlement in the United States.” Zumbrun concluded, "The official rural population count has long been held down by an arbitrary definition. The country is more rural and small-town than we think."

This is the first time the bureau has used housing units to define urban areas. "A place can be considered urban if it has at least 2,000 housing units, based on the calculation that the average household has 2.5 people," Schneider reports. "Among the beneficiaries of using housing instead of people are resort towns in ski or beach destinations, or other places with lots of vacation homes, since they can qualify as urban based on the number of homes instead of full-time residents."