US utilities are increasingly turning to eminent domain to seize private land for new transmission lines that will serve massive artificial intelligence data centers. The practice, which allows governments and private companies to take property for public use in exchange for compensation, has drawn sharp criticism from landowners who say they're being forced to sell.
Why the Lines Are Needed
AI data centers consume enormous amounts of electricity — far more than traditional data centers. To meet that demand, utilities are building new high-voltage transmission lines, often across long distances and through rural areas where land is held by families and farmers. Without the lines, the centers can't operate, and the companies building them won't get the power they need.
Eminent domain gives utilities a legal tool to acquire strips of land for these corridors. They argue that the projects serve a broad public interest — keeping the grid reliable and supporting economic growth tied to AI. But the people whose land is taken see it differently.
Landowners Fight Back
In several states, property owners have filed lawsuits challenging the seizures. They claim the takings aren't really for the public — they're for private profit, since the data centers are owned by tech companies. The legal question is whether powering a private AI facility counts as a public use under the Constitution's Fifth Amendment.
Some affected landowners say they weren't given a fair price or enough time to negotiate. Others argue that the entire process favors utilities, which have deep pockets and legal teams. The cases are moving through courts, and no clear precedent has emerged yet.
What's at Stake for Regulators
State utility commissions and the Federal Energy Regulatory Commission are watching the disputes closely. They have to decide whether to approve the transmission projects and, if so, under what conditions. Some commissioners have questioned whether the need for AI data center power justifies overriding property rights.
A few states have proposed laws to limit eminent domain for such projects, but none have passed yet. For now, utilities are pressing ahead, and the fights are likely to intensify.
The next big test comes later this year, when a Texas court is scheduled to hear one of the first major challenges. How that judge rules could shape the future of AI infrastructure — and the meaning of public use.
