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By Joe Edwards
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California’s long-awaited high-speed rail project may be being repositioned as a data center corridor, with revenue from the infrastructure seen as a way to help fund a project that has struggled to secure enough public money.
"The Authority is not proposing to build or operate data centers. It is focused on building and operating a high‑speed rail system. As part of that mission, the Authority is evaluating opportunities to responsibly commercialize assets associated with the rail corridor," a California High-Speed Rail Authority (CHSRA) spokesperson told Newsweek.
"The system will require substantial fiber‑optic, communications, and power infrastructure to support operations. Where excess capacity exists, the Authority could lease access to third parties and generate ancillary revenue from infrastructure already being built for rail purposes."
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The spokesperson added that the strategy aligns with the CHSRA's statutory obligation to operate the rail system without relying on continuing operating subsidies, and that identifying ways to generate revenue beyond passenger fares from existing rail assets could improve the system’s long-term financial viability while providing additional economic benefits to California residents and communities along the high-speed rail corridor.
"The first and only priority is building out a world‑class high‑speed rail system in California. All the work of the Authority is done in service of that goal," they said.
Why It Matters
The publicly funded high-speed rail project aims to carry passengers between Los Angeles and San Francisco at speeds of up to 220 mph, but it has faced years of delays, funding gaps and escalating costs. Approved by voters in 2008 with an expected 2020 completion date, the project remains years from completion.
What To Know
“The Authority is advancing an asset commercialization strategy to develop energy and technology projects along the high-speed rail right-of-way and on surplus land,” a 2026 revised draft business plan from the CHSRA read.
“By leveraging state-owned land for commercial development such as solar farms, battery storage, data centers, and fiber optic and transmission lines, the Authority can create new business income sources before operations, while also benefiting communities along the corridor.”
The document went on to say that analysis “revealed several complementary opportunities, particularly in areas such as renewable energy and technology infrastructure. For example, solar farms and data centers could leverage high voltage direct current (HVDC) transmission and technology corridors, creating a multiplier effect on investment returns and operational efficiency.”
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As reported by The San Francisco Chronicle, the strategy has raised concerns among some, including Visalia resident Joseph Mello, who said he reviewed the plans and addressed the board on June 1, the day of their approval.
“As a potential rail user,” Mello said, per the outlet, “I do not want to ride through a valley of data centers.” Public comment at the June 1 board meeting focused heavily on data centers and high-speed rail, with concerns over water use, pollution, noise, fire risk and impacts on farmland—echoing opposition seen in towns nationwide, it added.
High-Speed Rail CEO on Transparency Concerns
In a recent interview with local station KRCA 3, California High-Speed Rail CEO Ian Choudri addressed transparency concerns surrounding the project, saying he would be “more than happy” to discuss details of the high-speed rail project that people may feel are lacking.
"We improve every day," Choudri said. "We have improved the entire design concepts, we have improved the way we are going to deliver. If there is someone who comes and says 'hey, this is the information we're looking for and you guys aren't providing it,' I would like to know."
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"Everything we do, every penny we spend is posted on our website," Choudri said, per KRCA 3. "I tell my team to provide as much information as we can."
Choudri also acknowledged the importance of transparency on the project, given its past challenges, including delays and rising costs.
"My goal really is to let the public see we can build it," Choudri said. "If we talk more to the people and let them understand what happened and what happens next, then I think public support will continue."
He added that the project would mark the first high-speed rail system in the Western Hemisphere, noting that China has been able to advance its own network more quickly because it does not face the same federal and state regulatory hurdles, according to KRCA 3.
"They just blow and go," Choudri said.
California Governor Candidates on High-Speed Rail Project
California gubernatorial hopefuls have also addressed concerns surrounding the high-profile project.
Democrat Xavier Becerra said he would overhaul the current plan to ensure the project is completed on schedule.
"I'm going to scrap the current configuration, and I'm going to make sure we finish," Becerra told voters in Fresno last month, as reported by Fox 26 News. "But we've got to do it on budget and on time."
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A Becerra campaign spokesperson told Newsweek: "Nearly 80 miles of guideway are complete. The bridges, viaducts, and overpasses are built. The infrastructure is in the ground, and the track is coming. Secretary Becerra is now focused on making sure nothing slows what comes next—cutting through every bottleneck, every broken approval chain, every delay that has held this project back."
Meanwhile, Republican candidate Steve Hilton told Fox Business earlier this month that the project “doesn’t meet the standards of the law” and would instead spend money on alternative infrastructure projects.
Update, 23/7/26, 7:42 a.m. ET: Article was updated with comment from the CHSRA.
Contact Newsweek editors on this story: Ben Kelly and Gray R. Thomas, Edward Pearcey.
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