Department of Transportation launches highway and railroad land leasing program

The U.S. Department of Transportation has introduced America’s Great Corridors of Commerce (AGCC), a program designed to lease highway and railroad land to private companies for the installation of critical infrastructure. Announced by Transportation Secretary Sean Duffy, the initiative aims to accelerate the construction of transmission lines, fiber-optic cables, water lines, and pipelines.

The DOT states the program intends to reduce infrastructure costs and place “downward pressure on residential user rates,” potentially lowering electricity bills for households. By clustering data centers and manufacturers along established corridors, the department hopes to avoid the expensive, piecemeal grid upgrades that typically lead to rate hikes for consumers. Additionally, the lease revenue generated is intended to fund transportation projects without additional taxpayer costs.

No specific corridors have been selected yet. The department plans to conduct a competitive process to solicit interest from state transportation departments and railroads. Secretary Duffy noted that the country possesses approximately 161,000 miles of highways and 140,000 miles of permitted railroad tracks that could be utilized for these future technologies.