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Power companies are using eminent domain to seize land for data centers

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Why This Matters

The surge in data center construction driven by the AI boom is prompting power companies to use eminent domain to acquire land for necessary infrastructure, raising legal and community concerns. This development highlights the tension between technological progress and private property rights, with implications for local communities and the future of infrastructure expansion. As demand for data processing grows, so does the debate over the limits of eminent domain in serving private technological needs.

Key Takeaways

The artificial intelligence boom in the United States is being matched by a data center building boom. There are more than 3,000 data centers in the U.S. and another 1,500 in development, according to a Pew Research Center analysis.

While President Donald Trump has promoted AI advancement, calling it crucial to economic and national security, polling shows that 7 in 10 Americans oppose the construction of AI data centers in their communities, citing higher utility bills, pollution, noise and the loss of green space. These centers, which hold computer servers that process words, images and lines of code for large language models such as ChatGPT, also use high amounts of water and electricity.

There is growing opposition to the infrastructure surrounding them, too, particularly the transmission lines needed to power them, which often must cross land belonging to private citizens.

Where private citizens refuse to sell their land, companies are turning to eminent domain, the government’s inherent power to seize private property without a landowner’s consent. But does a line built to serve a private data center qualify?

I’m a legal scholar who studies eminent domain issues, and I interpret today’s disputes over seizure of property for the benefit of AI infrastructure as the latest incarnation of a long-standing debate about the limits of taking private property for public use.

Why is expansion needed?

Data centers have massive power needs that can stress electrical grids and threaten their reliability. In 2024 they accounted for more than 4% of the nation’s total electricity use. Demand will grow as more are built. To meet this demand, power companies must build more transmission lines – and acquire land to put them on.

Across the U.S. – in states such as Georgia and Pennsylvania – power companies have looked to eminent domain to facilitate these goals.

What is eminent domain?

Power companies can approach landowners to purchase easements for transmission lines; if landowners refuse, the government might force a sale.

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