Government can seize private land to make way for new AI data center transmission lines, report says — takeovers could be implemented using eminent domain law when private citizens refuse to sell land

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Eminent domain can force land sales regardless of the owner's consent

Vernon data center
(Image credit: Getty / LA Times)

A report by The Conversation has claimed that the government can seize private land to make way for new transmission lines needed to meet the surging electricity demand of data centers. According to the July 16 report by Aaron Walayat, Assistant Professor of Law at the University of Dayton, power companies can use eminent domain — the legal authority that grants the government the power to take private property and convert it to public use in exchange for compensation — to implement the takeovers.

The AI boom has led to a surge in data centers in the U.S., with thousands already operational and several more planned or under construction. While the massive superclusters are necessary for the technological revolution AI has brought about, there's growing opposition to their construction over several concerns. Among them are land use, noise pollution, water usage, and the impact of immense electricity consumption, issues that have reportedly made 70% of Americans opposed to building data centers nearby.

In many instances, data centers draw the required electricity from the grid. As the industry enters the gigawatt era, utility companies are under pressure to increase supply to meet surging demand. This requires building new power infrastructure, such as transmission lines, which often have to cross private land. When this happens, the power companies try to buy the land. Should the owner refuse, the government can force a sale through the eminent domain law.

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The law grants the government the power to take private land, regardless of the owner's consent, provided that the land is for public use and the owner receives just compensation. The government can also delegate the power to “private entities or common carriers,” such as utility companies. It is this legal authority that power companies can enact to implement the takeovers.

According to the report, the law does not automatically grant infallible authority. The company must prove that the infrastructure will be for public use. Several states also reserve the right to interpret eminent domain laws according to their own constitutions.

The report highlights another layer of legalities amid ongoing data center tensions. Opponents have successfully blocked 75 planned data center projects in the first quarter of 2026, including the 2,100-acre Digital Gateway project, eventually canceled over a newspaper-notice technicality. On the other hand, several other projects have gone ahead, often with community support. Meta recently announced plans to expand its Hyperion AI supercluster from 2 GW to 5 GW.

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Etiido Uko
Etiido Uko
News Contributor

Etiido Uko is a news contributor for Tom's Hardware covering the latest updates in big tech and the PC industry. He is a mechanical engineer and senior technical writer with over nine years of experience in documentation and reporting. He is deeply passionate about all things engineering and technology, and is an expert in gadgets, manufacturing, robotics, automotive, and aerospace.

40 Comments Comment from the forums
  • SomeoneElse23
    If used, this is sure to go over well.
    Reply
  • palladin9479
    Headline is factually incorrect. Private entities do not have the power of eminent domain, only governments do. there for power distribution companies can not "seize private land to make way for new AI data center transmission lines". They must first attempt to either purchase that land or come to an agreement with the owners over right of way. Failing that, they must then request the government to purchase the land from the owners at market value, which the government does for the purpose of the "common good". There is an entire legal framework around that which includes legal motions, Judges, courts and rulings.

    If there is sufficient community outrage, the elected politicians will intervene and get it canceled. Otherwise legal injunctions preventing the takings can also be used, especially if it's not for the common good.

    TH needs to be careful about putting too much trust into opinion pieces written by university professors.
    Reply
  • King_V
    As I understand it, in Atlantic City, NJ, the local politicians deemed anything the casino/hotel developers wanted as public use/common good.

    Of course, should any resistance from "the poors" come up, well, they didn't have the resources to fight it in court.
    Reply
  • warezme
    King_V said:
    As I understand it, in Atlantic City, NJ, the local politicians deemed anything the casino/hotel developers wanted as public use/common good.

    Of course, should any resistance from "the poors" come up, well, they didn't have the resources to fight it in court.
    This exactly. They count on the poors not being able to defend themselves.
    Reply
  • ezst036
    It would be wonderful if all of this leads to the overturning of Kelo v. New London.

    What a despicable ruling.
    Reply
  • coolitic
    palladin9479 said:
    Headline is factually incorrect. Private entities do not have the power of eminent domain, only governments do. there for power distribution companies can not "seize private land to make way for new AI data center transmission lines". They must first attempt to either purchase that land or come to an agreement with the owners over right of way. Failing that, they must then request the government to purchase the land from the owners at market value, which the government does for the purpose of the "common good". There is an entire legal framework around that which includes legal motions, Judges, courts and rulings.

    If there is sufficient community outrage, the elected politicians will intervene and get it canceled. Otherwise legal injunctions preventing the takings can also be used, especially if it's not for the common good.

    TH needs to be careful about putting too much trust into opinion pieces written by university professors.
    "People in higher education discover eminent domain for the first time" might be a good headline.
    Reply
  • Dr3ams
    "Demonstrate that the project is for "public use"

    The above statement shouldn't apply to data centers. Power grids are generally used by a majority of the public abroad, but data centers are not.
    Reply
  • j_123
    palladin9479 said:
    Headline is factually incorrect. Private entities do not have the power of eminent domain, only governments do. there for power distribution companies can not "seize private land to make way for new AI data center transmission lines". They must first attempt to either purchase that land or come to an agreement with the owners over right of way. Failing that, they must then request the government to purchase the land from the owners at market value, which the government does for the purpose of the "common good". There is an entire legal framework around that which includes legal motions, Judges, courts and rulings.

    If there is sufficient community outrage, the elected politicians will intervene and get it canceled. Otherwise legal injunctions preventing the takings can also be used, especially if it's not for the common good.

    TH needs to be careful about putting too much trust into opinion pieces written by university professors.
    True, except for this:

    > the elected politicians will intervene and get it canceled

    They often will not intervene, because many don't actually care about doing what's right for their communities.
    Reply
  • DS426
    ezst036 said:
    It would be wonderful if all of this leads to the overturning of Kelo v. New London.

    What a despicable ruling.
    Yes, quite the wild story to read about, especially given that Pfizer eventually abandoned their facility in New London -- so much for the "economic benefit" that's supposedly inline and fundamentally coequal to "public use/benefit."
    Reply
  • bigdragon
    Where I live there's a thing called the Maryland Piedmont Reliability Project (MPRP). It's basically a giant extension cord from data centers in northern Virginia that cuts across Maryland to plug into cheap power along the Susquehanna River. The state has been letting private companies trespass on private land to conduct surveys to advance the project.

    Private companies are pushing the eminent domain route here. The project is worth billions to the developers and data centers, but they're only willing to part with peanuts for the poors in the rural areas. These same poors randomly hit the jackpot and sell farm land to housing developers for millions, but the power line people would rather make up some ridiculously low "market value" or seize land than pay what it's worth to them.

    I have to wonder at what point the poors get pushed too far and decide to fight back. History teaches us that can happen and frequently does. Just because you can legally wrangle up a case to use eminent domain for power lines and data centers doesn't mean you should. I don't believe for a second that any of this is for public use or public benefit either.
    Reply