HR-10169-119
Referred to the House Committee on Energy and Commerce.
Sponsored by Mary Miller (R-IL)
What it does
This bill would prohibit federal agencies from providing federal financial assistance, tax credits, tax deductions, accelerated depreciation, or other federal financial benefits for building, expanding, or substantially rehabilitating data centers located on land classified as prime farmland or other protected farmland categories. It would apply to projects that begin construction, expansion, or rehabilitation after the bill becomes law.
Who benefits
Farmers and agricultural landowners who oppose conversion of farmland to industrial use, rural communities seeking to preserve agricultural land use, and conservation groups focused on farmland preservation. Data center operators that build on non-farmland sites could gain a relative competitive advantage over those seeking farmland locations.
Who is hurt
Technology companies and data center developers who had planned projects on farmland sites, particularly in states with large tracts of prime farmland near power and fiber infrastructure. Landowners who wanted to sell or lease farmland for data center development would lose that option for federally subsidized projects, and local governments anticipating tax revenue or federal-benefit-supported development on such sites could see reduced investment.
Supporters argue
Supporters argue that prime farmland is a limited and largely irreplaceable resource for domestic food production, and that federal tax dollars and tax benefits should not subsidize converting it into industrial data centers when other sites are available. They contend this preserves agricultural capacity and rural land use patterns without banning such development outright, only removing federal subsidy incentives that might tip the economic balance toward farmland conversion.
Opponents argue
Opponents argue that data centers are critical infrastructure for the digital economy and artificial intelligence development, and that restricting federal financial benefits based on land classification could slow needed investment and job creation in rural areas seeking economic diversification. They contend that farmland-use decisions are typically left to state and local zoning authorities and that a blanket federal funding restriction removes flexibility for landowners and developers to make case-by-case decisions about the best use of their property.