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Utilities Use Eminent Domain to Build Transmission Lines for AI Data Centers

The move is triggering legal fights over whether lines that chiefly serve private campuses meet the Constitution’s public‑use test and who should pay for upgrades.

Overview

  • Reporting on Monday and Tuesday showed utilities are actively pursuing eminent domain to acquire land for high‑voltage lines that will supply large AI data centers, with Georgia Power seeking more than 300 parcels for a 35‑mile project that planners say will route roughly 70–80% of its power to data centers.
  • Homeowners and local groups have filed legal challenges arguing such takeovers do not meet the Fifth Amendment’s public‑use requirement, even though courts have historically favored utility projects in similar disputes.
  • Utilities defend the practice as a last resort and say historically less than 1% of their land deals became forced takings, but the rapid scale of new projects means more property owners face the prospect of compulsory sale.
  • The buildout responds to a sharp rise in data‑center electricity demand — analysts estimate data centers used about 10–20% of U.S. power in 2024 and planned campuses such as Meta’s Hyperion would draw power at city‑scale — driving a need for new transmission capacity.
  • State regulators and lawmakers are debating moratoria, new tariffs, and cost‑allocation rules to avoid placing upgrade bills on residential customers while critics warn unchecked expansion could spur more fossil‑fuel generation, strain water resources, and deepen local backlash.