Raymond Balaguer Contributor
The rise of artificial intelligence (AI) is accelerating the demand for new and larger data centers. Data centers require vast amounts of electricity, water and physical space. Meeting these needs will likely push utilities to expand grid capacity, water infrastructure, and transmission corridors, potentially triggering the use of the power of eminent domain to secure the necessary land. Now, how can this affect you directly? Eminent domain is a legal authority that the government has—or a private company acting with government approval—to acquire private property for public use, whether the owner wants to sell or not. Once approved, the utility must pay the owner an amount reflecting the property’s fair market value, though disputes over valuation are common. Traditionally, eminent domain has been used for public projects like highways and schools, but it can also extend to private companies performing functions deemed essential to the public interest, such as electricity providers, telecommunication towers or water utilities. If a farmer or landowner with an easement gets notice that a utility or company is seeking to take part of their land through eminent domain, they do not have to simply accept it—there are several legal and practical steps they can take to protect their interests. 1. Verify the legal authority and purpose. Utility companies, pipeline operators and other entities may stretch their definition of “public use.” Landowners may have to seek legal advice to make sure that the company will ultimately be providing a public service with their land. 2. Challenge the necessity and scope. Even if the company has eminent domain authority, it still has to show that taking your land is necessary for the project. Landowners can argue that the project could be routed differently, built on already-owned land or reduced in size to avoid unnecessary impact. This is especially relevant for farmers, as infrastructure placement could cut off irrigation, divide pastures or disrupt agricultural operations in ways that alternatives could avoid. 3. Fight for fair compensation. If the taking is allowed to proceed, you are entitled to “just compensation,” which is typically the fair market value of the property taken plus potential damages to the remaining land (called “severance damages”). For farmers, this can include the loss of productivity, reduce access or diminish property value. Independent appraisals are often key here—never rely solely on the company’s valuation. 4. Use negotiation and leverage. Many eminent domain disputes never make it to court because both sides prefer to settle. Landowners can negotiate for better compensation, changes in project design to minimize disruption, or even replacement easements. Having a skilled eminent domain attorney can increase leverage in these negotiations. In some cases, collective action—where multiple affected landowners join forces—can make a stronger case against unnecessary takings or lowball offers.