Georgia Transmission Line Project Raises Eminent Domain Concerns

As demand for AI increases each day, new AI data centers are popping up all over the country. These facilities require massive amounts of electricity. As such, larger and more powerful transmission lines are being constructed to deliver sufficient energy—often traversing private property. Such is the case in Georgia where hundreds of residential properties stand in the way of a transmission line project. The utility company has threatened to use eminent domain, angering many homeowners.

Background

Georgia Power is an Atlanta-based utility company proposing a grid expansion plan, named Project Wansley. The plan was created primarily to meet the high energy needs of four AI data centers. Georgia Power seeks to construct 500-kilovolt transmission lines to power these facilities. For reference, a single 500 kilovolt line could power a large city or even a small state! An estimated 330 properties stand in the way of Project Wansley, and up to 30 of them will be completely torn down.

Offers to Purchase Property Interests

Several homeowners in Project Wansley’s path have received offers from Georgia Power for their property interests. However, many of them believe the offers aren’t fair. When making the offers, the company relied on estimates of fair market value from appraisers. Some believe the appraisers used comparable sales too remote from their location. As a result, they believe the fair market value estimates are far too low.

One family has gone viral for standing up to Georgia Power’s threats of eminent domain. Angela Hall and her daughter Ansley Brown have lived in their home since 2003. Angela was able to purchase the home through a government loan program. As it turns out, the home is one of the few needed to complete the grid expansion project. Georgia Power initially engaged in negotiations with Angela, but those have fallen through. The company’s attorneys have threatened to pursue eminent domain through a third party if a settlement is not reached. While Angela believes the offers were as much as $100,000 below the property’s true market value, Georgia Power has stated that it negotiated in good faith and made an offer significantly higher than the property’s appraised value. The family’s story has gone viral in a TikTok post, catching the attention of state legislators.

Another homeowner faces a similar dilemma. Cynthia Van Epps was told that her entire property would need to be taken for the project. During negotiations, Georga Power pivoted from a total taking of her home to a permanent easement and offered her $125,000. However, the easement would occupy more than half of her property, be dangerously close to her house, and restrict her ability to use and build on her land. On top of that, she’ll still need to pay property taxes.

Rising Concern Over AI Data Centers

Van Epps has questioned the need for such infrastructure to support AI expansion. She’s not alone. A recent survey from Gallup found that roughly 71% of Americans are against new development of AI data centers. Some believe that data centers pose a hinderance on communities, with continuous noise output being a nuisance and resources being used up. Moreover, they can potentially affect property values in a negative way. Given the choice between a home far from an AI data center and a home near one, most would likely take the former over the latter.

Georgia Power’s Eminent Domain Authority

Utility companies regulated by the state of Georgia are granted eminent domain authority by statute. Takings of private property will generally be upheld as long as they are used for an authorized utility purpose; this includes power generation and transmission. The electricity doesn’t have to serve the public exclusively. After Kelo v. City of New London, many courts have upheld the use of eminent domain for economic development, even if these projects primarily benefit private companies. So in short, the use of eminent domain here would most likely be upheld under Georgia and federal law.

Even if homeowners cannot successfully challenge Georgia Power’s right to take private property, they must still receive just compensation for their property interests. In these situations, eminent domain attorneys can provide a significant benefit by ensuring that homeowners’ constitutional right to just compensation is upheld.

Conclusion

Georgia Power’s transmission line project highlights a growing tension between surging AI demand and the rights of individual property owners. Disputes like these often raise difficult questions, namely whether eminent domain should be used to benefit private companies at the expense of homeowners and local communities.

For nearly 60 years, McKirdy, Riskin, Olson & DellaPelle has fought for New Jersey private property rights. Our firm has successfully challenged the use of eminent domain and has fought to ensure every penny of just compensation is paid. If you are facing eminent domain, feel free to contact us for a free consultation.

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