Data center boom sparks eminent domain battles over land acquisition

The artificial intelligence boom is fueling a massive expansion of data centers across the United States, creating significant demand for electricity and straining existing power grids. With over 3,000 data centers currently operating and another 1,500 in development, these facilities consume substantial amounts of energy, accounting for over 4% of the nation's total electricity use in 2024 alone.

To meet this escalating demand, power companies must build more transmission lines. This often requires acquiring land, leading to increased reliance on eminent domain – the government's power to seize private property for public use, even without the owner's consent. When private landowners refuse to sell, companies are turning to this legal mechanism, raising questions about whether land acquisition for private data centers constitutes a legitimate 'public use'.

This trend has ignited opposition, with polls indicating that a majority of Americans are against the construction of AI data centers in their communities due to concerns about utility costs, pollution, noise, and loss of green space. The use of eminent domain for infrastructure supporting these private enterprises is now at the forefront of a long-standing legal debate concerning the boundaries of government power to take private property. Legal scholars note that while landowners must receive 'just compensation,' the definition of 'public use' is central to these ongoing disputes, with state laws varying on how utilities can exercise this power.