Article By Frank Bergman
The explosive expansion of artificial intelligence infrastructure could open the door for governments and utility companies to seize Americans’ private property in order to power massive AI data centers.
A legal expert is warning that eminent domain laws could soon be used to force landowners off their property as states scramble to build the transmission lines needed to feed the AI boom.
Aaron Walayat, a legal scholar at the University of Dayton, says power companies in states including Georgia and Pennsylvania have already been considering the use of eminent domain to construct new electricity infrastructure for energy-hungry data centers.
AI Power Demand Sparks Property Rights Fears
Under eminent domain laws, governments can seize private property for “public use” without the owner’s consent, provided they offer what is deemed “just compensation.”
If a property owner refuses to sell, utility companies can ask state or local governments to condemn the land and take it by force.
In many cases, utilities only need an easement, giving them the legal right to construct transmission lines across private property.
Walayat notes that although governments typically exercise eminent domain, states often delegate those powers to so-called “common carriers,” including electric and water utilities.
While many states tightened eminent domain laws after years of public backlash, courts have continued to uphold the authority of utility companies to seize land for infrastructure projects.
Supreme Court Opened the Door
The legal foundation for such seizures was strengthened by the Supreme Court’s controversial 2005 ruling in Kelo v. City of New London, which allowed Connecticut officials to seize private homes for a private economic development project centered around a Pfizer facility.
The promised development never materialized.
The decision sparked a nationwide backlash, prompting 45 states to pass stronger protections against eminent domain abuse.
Even so, courts have continued allowing utilities to condemn private property when they argue transmission projects serve the public interest.
State supreme courts in South Dakota and Vermont have upheld similar land seizures after finding transmission lines would strengthen local electrical grids or provide power to in-state customers.
Not every court has agreed.
In 1984, the Mississippi Supreme Court rejected a utility’s attempt to seize land because the proposed transmission line would primarily serve Louisiana customers rather than residents of Mississippi.
Maryland Residents Fighting AI Transmission Project
A similar battle is now unfolding in Maryland.
A proposed 76-mile transmission line would cut across private property to deliver additional electricity to the rapidly expanding AI data center hub in Northern Virginia.
Landowners have fiercely opposed the project, arguing Maryland is being turned into nothing more than an “extension cord” for Big Tech’s AI infrastructure.
The utility behind the proposal, PSEG, sued property owners to gain access to their land for surveys.
A federal judge sided with the company, allowing the work to proceed.
The homeowners have appealed the ruling, and the legal fight remains ongoing.
Walayat believes similar projects are likely to face mounting legal challenges, particularly where utilities struggle to prove that new transmission lines actually benefit residents in the states where the land is being taken.
As AI companies race to build ever-larger data centers requiring unprecedented amounts of electricity, the battle over who bears the cost, and whether Americans can be forced to surrender their land, appears increasingly likely to move from legal theory to courtroom reality.
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