The dual benefits of dual-use solar

Farmland near growing data center hubs is under pressure. Data centers can take up more than 1,000 acres each, and with over 1,700 new projects planned across the country, some landowners are being tempted to sell agricultural land to developers. But a growing alternative called agrivoltaics — combining solar panels with farming or grazing on the same land — is giving farmers a reason to hold onto their property instead.

The appeal is financial. Leasing land for solar can pay farmers $1,000 or more per acre each year, according to one industry survey, often more than crops alone would earn, and with far more predictable income. Some solar developers are building this into their projects directly, adding sheep grazing beneath panels or designing systems that let crops keep growing underneath. In Texas, solar grazing businesses have emerged specifically to manage vegetation on solar sites using livestock, a practice that's expanding along with the state's solar capacity, now second largest in the country.

Local and state policies are starting to shape how this plays out. Some farming-dependent counties have banned data centers outright, while others require solar projects on farmland to keep the land productive — through grazing, irrigation, or crop protections — before approving them. States including Massachusetts, New York, Maine, and Colorado offer financial incentives or tax breaks tied to farm-friendly solar. Virginia recently created a formal legal definition of agrivoltaics, aiming to balance its rising demand for data center power with keeping farmland in agricultural use. If you own farmland, what's available may depend heavily on your state and county rules.