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Power Companies Use Eminent Domain for AI Data Center Land

Power Companies Use Eminent Domain for AI Data Center Land

The rapid expansion of artificial intelligence in the United States is driving a significant increase in data center construction, with over 3,000 operational and 1,500 more in development, according to a Pew Research Center analysis. Despite President Donald Trump's emphasis on AI's importance for economic and national security, public sentiment indicates strong local opposition, with 70% of Americans against AI data centers in their communities due to concerns about increased utility costs, pollution, noise, and loss of green space. These data centers, which house servers for large language models like ChatGPT, consume substantial amounts of water and electricity. Growing opposition is also directed at the necessary infrastructure, particularly the transmission lines required to power these facilities, which often necessitate crossing private land. When landowners refuse to sell, companies are resorting to eminent domain, the government's authority to seize private property for public use without owner consent. Legal scholars are examining whether land acquisition for private data centers constitutes a legitimate public use under eminent domain laws, framing it as a continuation of historical debates on the limits of property seizure. The immense power requirements of data centers, which accounted for over 4% of the nation's total electricity consumption in 2024, are straining electrical grids and impacting reliability. To meet this escalating demand, power companies are compelled to build more transmission lines, necessitating the acquisition of land. In states such as Georgia and Pennsylvania, power companies have already utilized eminent domain to secure land for these transmission projects.

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