FMTC explores micro data center, broader digital infrastructure opportunity

Farmers Mutual Telephone Company of Stanton (FMTC) is exploring an expansion of its infrastructure that could bring a micro data center to Red Oak while creating opportunities for broader investment in digital infrastructure across Southwest Iowa.
FMTC recently discussed the concept with elected officials. FMTC CEO Kevin Cabbage said the proposal is about more than simply constructing a data center.
“We’ve been looking for a while now at how we can take advantage of FMTC’s long history of building infrastructure over the course of the last 125 years. The next opportunity we see is in digital infrastructure. The data center itself is just a facility. We’re more excited about the economic opportunity it could bring to Southwest Iowa,” Cabbage explained. “An analogy that was given to me and I like very much is that for centuries our farmers have grown products and exported them around the world. This is our opportunity with this digital infrastructure to produce a commodity that can be consumed by the world. It makes the world your customer now. We’re excited about the opportunity it could bring to Southwest Iowa.”
FMTC is currently in discussions with Farmer’s Mutual Cooperative Telephone Co. of Harlan and IAMO Communications of Coin about potentially forming a partnership to pursue the project. As for why Red Oak is being considered as the location, Cabbage said supporters of the project believe the community possesses many of the ingredients necessary to provide future investment and innovation, including extensive fiber connectivity, access to energy sources, available development property, transportation accessibility, strong community leadership and a history of supporting economic growth.
“These strengths position Red Oak and the surrounding region to compete for opportunities that historically have been concentrated in larger metropolitan areas. Advances in telecommunications and digital infrastructure continue to reduce the importance of geography while increasing the importance of connectivity, energy availability, infrastructure and leadership. Supporters say that communities with those assets are increasingly attractive locations for emerging industries,” Cabbage stated.
FMTC already owns property at the intersection of Fourth and Linden streets in Red Oak as a location for the center.
“We actually have a small data center that we built on that site already. We have servers and computerized equipment in there that perform the necessary functions to make our fiber optic network work and provide service. So this is just a continuing development of that property,” commented Cabbage.
One question raised during discussions about the project was whether it would require demolition of the former No Frills building. Cabbage said demolition of that building is not part of FMTC’s proposed project. The project under consideration is a micro data center that would utilize modern technologies intended to improve efficiency and reduce resource consumption.
“We live here, we work here. We don’t want to bring anything in here that we wouldn’t want to live near ourselves,” Cabbage said.
The facility would incorporate a closed-loop liquid cooling system. Unlike traditional cooling systems that may require ongoing water consumption, the proposed closed-loop system would continuously re-circulate the water during operation. The system would initially require approximately 700 gallons of treated water in an onsite tank. The water would remain within the closed-loop cooling system rather than being continuously consumed. Construction of the proposed data center would be coordinated by Flux Core Data Systems and Energy.
“They actually have the distributed micro data center product that we’re very excited about. We will contractually partner with them, and they’ll construct the facility and then get it operational for us,” Cabbage advised.
Cabbage added the project would have a relatively small physical footprint in Red Oak.
“The project will be confined to the Fourth and Linden streets location, and honestly, the centers won’t even fill the lot. These are small containerized units, so I think we’ll have an area that we have the standby generators on, we’ll have a container where all the computing power will be located, and then another container that houses the cooling chillers to cool the computer processors,” commented Cabbage.
FMTC has also evaluated potential noise impacts associated with the equipment. According to Cabbage, the project includes measures intended to limit sound levels, including enclosing the generators and directing sound upward to reduce the impact on nearby residents. The company has also reviewed manufacturer specifications and conducted noise-related evaluations as part of its planning.
For anyone concerned about the potential electrical demand from the center, Cabbage said the proposed configuration is designed to minimize the impact on local electrical infrastructure.
“We’ll be using natural gas as a primary fuel source, so we’re working with MidAmerican Energy to do that. So far, it doesn’t sound like there are going to be any upgrades necessary with their existing distribution network to supply what we need in natural gas,” Cabbage explained. “We’ll also use their electrical system as a backup power source, and there were no upgrades necessary for us to do that either. That’s what makes this particular type of micro data center very fitted for small rural communities. It doesn’t put the drain on the resources that you hear about with the big centers.”
Southwest Iowa, for generations, has exported agricultural products, livestock and other commodities to customers throughout the country and the world. Revenue then flows back into local communities and supports economic growth. Cabbage said he and others involved with the proposed project believe advanced computing infrastructure could create an opportunity to participate in a similar model within the digital economy.
“Rural communities may be able to provide computing capacity to customers located across the nation and around the world. Revenues from that could then flow back into Southwest Iowa and create a new form of economic activity built around digital infrastructure,” Cabbage advised. “The benefits could extend beyond the facility itself. New investment often generates demand for local businesses, construction companies, engineering firms, professional services, restaurants, retailers, educational institutions and workforce development programs. Our hope is that the new economic activity would create additional opportunities throughout the broader regional economy. Projects like this could also help strengthen the region’s ability to attract additional businesses, entrepreneurs, innovators and future investment.”
Red Oak is also an attractive location, Cabbage said, because of the
Red Oak Municipal Airport.
“The airport provides convenient access for investors, engineers, technology professionals and business leaders visiting the area. Eppley Airfield in Omaha, Neb., places Southwest Iowa within easy reach of national and international travelers. As advanced digital infrastructure continues to develop, it is believed more people may travel to Southwest Iowa to learn about projects, meet with partners and explore future opportunities, which in turn could create additional demand for local hotels, businesses, restaurants and other service providers,” Cabbage commented.
Another potential benefit of the project is creating opportunities that encourage young people to stay in the region or return home to build careers.
“Supporters of this project believe industries connected to artificial intelligence, advanced computing, energy innovation, engineering and digital infrastructure could help create new career pathways for future generations. The goal isn’t simply to develop technology, but to create opportunities that support long-term prosperity and quality of life throughout the region,” Cabbage said.
The proposed site can accommodate up to three containerized data center units, but FMTC intends to begin with one.
“The initial footprint’s going to be one. Once we get this first one operational, and we see if it actually produces the results that we think it will, then we’ll be looking at additional ones throughout the FMTC footprint, where we have our fiber optics. That’s the key. Without the fiber optic connectivity, these units don’t work. That’s currently way down the road,” explained Cabbage.
Supporters also believe the broader conversation extends beyond technology and infrastructure and represents an opportunity to explore how rural communities can participate directly in industries shaping the future economy.
“For FMTC, the larger question is not simply whether advanced computing infrastructure can be developed in Southwest Iowa, it’s whether rural communities can create the conditions necessary for future investment, innovation and prosperity. Our goal is to create momentum that brings new investment, new opportunity and long-term prosperity to the communities that we serve. If we do this well, our children and grandchildren won’t have to leave home to find opportunity; opportunity will increasingly find them,” stated Cabbage.
The project remains under evaluation and is subject to ongoing due diligence, financing, legal documentation, technical validation, partner approvals and final board review. Company leadership will have the responsibility to fully understand both the opportunities and risks before making a final decision. Once those steps are completed, FMTC expects to establish a firmer timeline.
“The official partnership with the two other companies, we’ve got to get finalized. I’m hopeful for that to be done really, really soon. Then we’ll start moving forward with the project, getting the financing in place, getting the orders placed with Flux Core. We’re very hopeful that construction could start yet this fall, and we’ll see how quickly it advances. Once the project starts, the current estimate is approximately 34 weeks before the site would be operational,” Cabbage said.