Transmission Line Property Rights: Utility Use for Data Centers

In the United States, the growth of artificial intelligence has led to a rapid increase in the construction of data centers. The Pew Research Center highlights that there are over 3,000 data centers currently operational, with an additional 1,500 developing. This surge raises important questions about the use of utility transmission lines and the ability to seize private property for their construction.

Courts have historically granted utilities the right to seize private property under eminent domain to build transmission lines. This practice has been justified by the need to provide widespread public service and network efficiency. However, challenges arise when the power generated by these lines serves a singular purpose, such as powering data centers owned by private companies. This situation demands scrutiny of the legal and ethical implications of continuing such practices.

Data centers are integral to the infrastructure supporting the technology sector’s growth, storing massive amounts of data essential for AI functions and other digital operations. They are often located in strategic areas to optimize connectivity and energy efficiency but require substantial power, sometimes from dedicated transmission lines.

The core issue revolves around whether the transmission line that serves solely a private data center can be considered serving the public interest, the criteria traditionally used to justify the use of eminent domain. Should the courts rule differently in such situations, it may affect how utilities plan and execute the development of transmission infrastructure for private projects.

This debate impacts not just legal interpretations but also public perspectives on property rights, utility functions, and the broader implications of infrastructure policies as private industry continues to expand its digital footprint.