The expansion of artificial intelligence in the United States is mirrored by a surge in data center construction. The Pew Research Center reports over 3,000 data centers existing in the U.S., with another 1,500 under development. Former President Donald Trump emphasized the importance of AI to economic and national security. Despite this, 70% of Americans oppose building AI data centers in their communities due to concerns about increased utility bills, pollution, noise, and the reduction of green spaces.
Data Centers: Resource Intensive
Data centers house computer servers that process extensive data for language models like ChatGPT. They consume significant amounts of water and electricity. Polls indicate that the American public has increasing concerns over the necessary infrastructure, especially transmission lines that frequently require crossing privately owned lands. Companies often rely on eminent domain when landowners are unwilling to sell their land.
Eminent Domain Explained
Eminent domain allows governments to take private property for public use, provided the landowner receives fair compensation. While both federal and state governments can initiate this process, state and local governments primarily carry it out. They may also delegate the power to private entities such as utility companies, subject to state-specific regulations. In Texas, for instance, the state Supreme Court mandates that a project must serve the public and not solely the interests of the builder.
Defining ‘Public Use’
The U.S. Supreme Court broadly interpreted ‘public use’ in the 2005 Kelo v. City of New London decision, permitting property seizure for economic development. This decision led to extensive backlash, prompting 45 states to reform their eminent domain statutes. Some states like Michigan, Ohio, and Oklahoma prohibit property seizures solely for economic development, providing more protection under state constitutions than federal law.
Impact on Data Center Expansion
Legal challenges against property seizures for transmission lines based on public use yield mixed results. Courts in South Dakota and Vermont have validated such actions, citing benefits to in-state customers as justification. However, the Mississippi Supreme Court, in 1984, ruled against a power company’s attempt to seize land for a line that would not assist any Mississippi customers. As data centers demand increased energy, improving power grid reliability may qualify as public use, particularly when benefiting in-state customers, providing potential legal grounds for defending landowner rights.