Eminent domain for AI data centers

The AI boom is driving a surge in data center construction in the United States, with over 3,000 existing centers and 1,500 in development. This expansion requires significant electricity, straining power grids and prompting power companies to build new transmission lines. When landowners refuse to sell easements, companies increasingly turn to eminent domain, the government's power to seize private property for public use with just compensation. The legal debate centers on whether transmission lines serving private data centers qualify as 'public use' under the Fifth Amendment. State courts have issued mixed rulings: United States — South Dakota and United States — Vermont affirmed seizures benefiting in-state customers, while United States — Mississippi rejected a line serving only out-of-state customers. The U.S. Supreme Court's 2005 Kelo decision broadly interpreted public use to include economic development, but 45 states enacted reform laws in response. Some state supreme courts, like those of United States — Michigan, United States — Ohio, and United States — Oklahoma City, have restricted seizures for private economic development. The outcome of these disputes will affect data center expansion, power grid reliability, and property rights.