AUSTIN, TEXAS (Texas Department of Agriculture) — Texas Agriculture Commissioner Sid Miller today unveiled a bold plan to protect the nation’s prime farm and ranchland from the rapid spread of data centers. His proposal centers on creating federal or state-designated Agriculture Freedom Zones, or AFZs, which would use targeted tax incentives to guide data center development into appropriate areas. The goal is to safeguard vital food production while still supporting growth in technology and innovation.
Miller’s plan would steer data centers and other resource-intensive projects, including renewable energy installations and urban expansion, toward land that is less suitable for agriculture. Productive soils and critical water resources would remain available for the farmers and ranchers who rely on them.
“The unchecked spread of data centers onto prime farm and ranchland is a real and growing threat to our food supply,” Miller said. “But America also needs data, innovation, and technology infrastructure to stay competitive. America will continue to lead the world in both agricultural production and technology innovation, but only if we do it the right way. Agriculture Freedom Zones are the tool we need to protect vital farmland while supporting technological advancement.”
Under the AFZ framework, states would nominate eligible areas such as marginal land, brownfields, arid regions, or locations with existing grid access. Once approved by state authorities or federal agencies, these zones could qualify for property or other state tax incentives. Federal legislation would add further benefits, including capital gains tax deferral, reduced taxes on long-term investments, and tax-free appreciation for extended holdings.
Aerial drone shot of distribution warehouses and data center logistics hub with truck cargo shipping import and export in Biggleswade, England, United Kingdom.
Photo by Liam Carter via Adobe Stock
“Once you pave over good farmland, it is gone for good,” Miller said. “That means less food, higher grocery prices, and more pressure on the land and water farmers depend on. It is already happening. My plan uses targeted tax incentives, not mandates or handouts, to guide private investment where it makes sense.”
The proposal underscores long-term food security by treating agriculture as essential national infrastructure and by placing firm guardrails around irreversible land conversion. Miller warned that the loss of farm and ranchland is accelerating and permanent. “Farmers and ranchers cannot outbid data centers or municipalities for water,” he said. “Agriculture Freedom Zones would make sure food production comes first while still giving tech companies the certainty they need to build and grow. If we do not act now, we will lose land we can never get back. Agriculture Freedom Zones are how we protect our future without sacrificing innovation.”
The Texas Department of Agriculture has also produced a one-pager on Agriculture Freedom Zones, available for public review. To view the PDF Version of the plan, click here.
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Press release provided by the Texas Department of Agriculture
