The artificial intelligence surge in the United States correlates with a significant increase in data center construction. The Pew Research Center reports there are over 3,000 operational data centers in the U.S., with 1,500 more in development.
Public Sentiment and Challenges
Despite President Donald Trump championing AI for economic and national security, public sentiment largely opposes the construction of data centers. Polling reveals that 70% of Americans resist data centers in their communities, citing increased utility bills, pollution, noise, and reduced green space.
Data centers house servers that process data for models like ChatGPT. They demand substantial water and electricity, prompting concern about their environmental and infrastructure impact.
Infrastructure and Eminent Domain
The infrastructure supporting data centers faces mounting opposition, particularly regarding transmission lines. These lines often traverse private land, necessitating negotiations between power companies and landowners. When individuals decline to sell, companies may resort to eminent domain, a governmental power to seize property without consent.
Eminent domain requires land seizure to be for ‘public use,’ with the Fifth Amendment mandating ‘just compensation’ for the landowner.
State and local governments typically handle eminent domain actions, sometimes delegating this power to private entities such as utility companies. States like Texas mandate projects benefit the public, not solely the builder, to qualify for this power.
The ‘Public Use’ Interpretation
The U.S. Supreme Court broadly interprets ‘public use.’ In 2005’s Kelo v. City of New London, the court upheld property seizure for economic development, even though the proposed development never materialized.
This decision spurred eminent domain reform in 45 states. State supreme courts vary in interpreting eminent domain within their constitutions, with Michigan, Ohio, and Oklahoma courts limiting property seizure strictly for economic development.
Utilities, like power companies, generally prevail in eminent domain cases.
Implications for Data Centers
Data centers’ energy needs and impact on electrical grids make eminent domain a complex issue. Courts in South Dakota and Vermont upheld power company seizures that improved grid reliability and provided benefits to local customers.
If transmission lines do not serve local populations, they may face legal challenges. Mississippi’s Supreme Court previously denied a power company’s eminent domain claim for a line benefiting Louisiana, not Mississippi.
These decisions indicate securing land for improving power grid reliability to support data centers may qualify as public use, especially if in-state reliability is ensured. However, disputes over in-state customer benefits may provide grounds for legal challenges.
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