DOT unveils plan to turn highways, rail lines into multi‑use utility arteries

Initiative would leverage rail, road rights-of-way for electrical and other utilities

The DOT initiative would help power development of data centers like this one in Council Bluffs, Iowa. Photo: (Chad Davis/ Creative Commons)

The U.S. Department of Transportation has unveiled “America’s Great Corridors of Commerce,” a federal initiative designed to convert existing highway and railroad rights‑of‑way into shared corridors for electric transmission, fiber optic cables, water pipelines and other critical utilities.

The voluntary program, run through DOT’s Build America Bureau, is intended to accelerate utility deployment, cut permitting timelines and create a new revenue stream to help repair roads, bridges, tunnels and rail lines along the same corridors, according to the department.

Under the initiative, state departments of transportation and railroads could lease portions of land alongside roads, tracks or in shared utility tunnels to private “corridor managers” that would oversee the design, development, operation and maintenance of the added infrastructure.

Transportation Secretary Sean Duffy in an August 26 announcement said using existing transportation land instead of acquiring new private property reduces project costs and can allow some work to proceed under categorical environmental exemptions, bypassing lengthier reviews. Lease revenues generated from utilities would then be directed back to fund repairs and upgrades for the roads, bridges, tunnels and railroads along the corridor, the agency said.

The department emphasized that the program relies on public‑private partnerships and is structured to build out transmission, fiber and other infrastructure “at no additional cost to the taxpayer and no impact to the safety of existing transportation assets.”

Duffy framed AGCC as part of a broader push to lower costs, speed permitting and support advanced manufacturing and artificial intelligence, including development of data centers.

“America has always been at the bleeding edge of innovation. But we will lose the race to develop the technologies of the future if we cannot lower costs and get the government out of the way,” Duffy said. “By working with the private sector to combine our existing transportation network with transmission lines, fiber optic cables, and other critical infrastructure, we can make energy more affordable and fuel American industry for generations to come.”

Build America Bureau Executive Director Morteza Farajian in theb release described AGCC as a voluntary program offering “new, efficient, and effective choices” for building “smarter and better integrated corridors.”

“America can’t wait decades for modern utility and transportation infrastructure,” Farajian said. “By leveraging our existing transportation rights‑of‑way and bringing in private sector partners, we are charting an innovative path forward for a new age of infrastructure delivery established on strong partnerships, aligned interests, cutting through red tape and bureaucracy, collaboration, and efficiency.”

The release cites a widening gap between U.S. and Chinese transmission construction, noting that China has built more high‑voltage transmission lines in the last 15 years than the United States has in its entire history. While new power plants are coming online in the U.S., the department argues that moving affordable energy to growing communities and manufacturing hubs is constrained by limited transmission capacity.

A parallel bottleneck exists for fiber optic networks, which the department says are essential to semiconductor production, hyperscale data centers, smart transportation systems and other “technologies of the future.” With demand for fiber expected to double by 2029, USDOT contends that the U.S. must find ways to speed deployment.

The initiative is also pitched as a tool to help address a “multi‑trillion backlog” of upgrades for existing transportation infrastructure by leveraging private capital to keep roads, tunnels, bridges and rail lines in service.

The plan has drawn more early interest than opposition, but concrete positions from railroads, utilities and state DOTs are still emerging as stakeholders evaluate how lease terms and revenue sharing would work in practice; what environmental and safety reviews would be required for utility work in active rail/highway corridors; and whether the program will come with dedicated federal funding or rely entirely on private capital and lease revenues.

The Build America Bureau has published a Request for Information on the proposed AGCC model and is accepting public comments through Sept. 12. The bureau plans to select up to five initial priority corridors that would receive technical support, streamlined permitting assistance and public‑private partnership models to scale grid infrastructure.

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Read more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.