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tech 20 July 2026

Power Companies Use Eminent Domain to Build Data Centers

Power companies are seizing private land to build data centers, sparking controversy. Discover how eminent domain is being used and its implications.

Article inspired by the original source
Power companies are using eminent domain to seize land for data centers ↗ fortune.com

Introduction

The rise of artificial intelligence (AI) has created a growing demand for digital infrastructure, particularly data centers. These facilities, crucial for hosting and processing massive data, are becoming a major focus for power companies in the United States. However, they face increasing resistance from citizens whose lands are being seized under the guise of public utility.

Questioning Eminent Domain

Using eminent domain to build data centers raises ethical and legal questions. Traditionally, this right allows the government to seize private properties for public use, such as roads or schools. But using this power for private infrastructure, like data centers, is controversial. According to a 2026 report, 70% of Americans oppose the construction of these facilities near their homes, citing concerns like increased energy bills, pollution, and loss of green spaces.

Why Data Centers?

Data centers consume enormous amounts of energy and water. As of 2023, the U.S. had over 3,000 data centers, with 1,500 more in development. These facilities are essential for processing data from advanced language models like ChatGPT. However, their infrastructure requires transmission lines that often cross private lands, hence the use of eminent domain.

Implications for Landowners

For many landowners, eminent domain represents a significant loss. Besides losing their property, they face environmental and social changes. The question arises: do the potential economic benefits justify these sacrifices?

Use Cases and Examples

Take the example of Festus, Missouri, where residents protested against a data center project in 2026. Opponents highlight the impact on the local community and environment. This case illustrates the gap between the industrialization needed for technological progress and the preservation of local communities.

Conclusion

The use of eminent domain for data centers is a complex issue that requires balancing technological innovation with respecting citizens' rights. For decision-makers and entrepreneurs, it's crucial to navigate these murky waters with caution and transparency.

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