Artificial intelligence may be digital, but the infrastructure supporting it has a significant physical footprint. Data centers consume enormous amounts of electricity, often requiring new power plants, substations and high-voltage transmission lines.
For some Georgia landowners, that expansion is arriving through survey requests, easement offers and notices that a proposed power line may cross their property.
The central legal question is significant: Can private property be condemned when a major purpose of the transmission project is serving privately owned data centers?
Georgia’s Data-Center Boom Is Reshaping the Grid
Metro Atlanta has become one of the nation’s fastest-growing data-center markets. According to The Atlanta Journal-Constitution, the resulting demand for electricity is contributing to a major expansion of Georgia’s power infrastructure.
One project drawing attention is Georgia Power’s proposed Ashley Park–Wansley transmission line. The 500-kilovolt line would extend approximately 35 miles through portions of Fayette and Coweta counties, reportedly affecting more than 300 properties.
Several large data-center projects are located along or near the proposed corridor. Georgia Power maintains that the line is not intended for one customer and says it will also serve manufacturers, homes and other customers while improving overall grid reliability.
That claimed public benefit could be legally important.
Does the Project Qualify as a “Public Use”?
The Fifth Amendment allows private property to be taken only for a public use and upon payment of just compensation. Utilities traditionally receive condemnation authority because reliable electric service is considered a public necessity.
Data-center projects complicate that analysis. If a transmission line strengthens the larger grid and serves the public, a court may find a valid public use—even if data centers consume much of its capacity. If the project primarily benefits a private development, however, landowners may have stronger grounds to challenge the taking.
University of Dayton law professor Aaron Walayat recently examined this issue in an article published by Fortune. Courts in some states have upheld utility condemnations that improve reliability for in-state customers. Other courts have rejected takings that primarily transfer property for private economic development.
The result may depend on who actually benefits from the project—not simply how the utility describes it.
Compensation Must Reflect the Full Impact
Even when a utility has condemnation authority, the property owner has the right to seek just and adequate compensation. The utility’s first offer should not automatically be treated as the full value of the owner’s loss.
A transmission easement may affect more than the land inside the corridor. Potential impacts include:
- Loss of trees, privacy or usable property;
- Restrictions on construction or future development;
- Continuing access rights for the utility;
- Reduced marketability; and
- A decrease in the value of the remaining property.
An appropriate valuation should consider both the rights being acquired and any damage to the property that remains.
What Should a Landowner Do?
Before signing an easement or accepting an offer:
- Request the proposed survey, easement language, tower locations and construction plans.
- Photograph the property’s current condition, improvements, trees and access points.
- Consider an independent appraisal addressing the entire property.
- Review the scope of the utility’s permanent access and maintenance rights.
- Speak with experienced condemnation counsel promptly, because deadlines may arise quickly.
Georgia’s growing data-center industry may bring substantial investment, but individual landowners should not bear an unfair share of the cost. Property owners deserve a careful review of the utility’s authority, the proposed easement and the full impact on their property.
Has a Utility Contacted You?
If you have received a survey request, easement proposal, acquisition offer or condemnation notice, contact Scoggins Law Group before signing an agreement or accepting compensation. We can help evaluate the proposed taking, its effect on your remaining property and the amount being offered.
This article is for general informational purposes only and does not constitute legal advice. Every condemnation matter depends on its specific facts and governing law.