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Utility Companies Using Eminent Domain in Maryland to Support Increased Demand for Data Centers

Posted July 14, 2026 at 10:28 AM

Eminent Domain and Condemnation, Litigation, News & Events

The artificial intelligence (AI) boom in America is creating an enormous demand for data centers and the energy needed to support them. It is no surprise that utility companies across the country are planning upgrades to the power grid, including new high-voltage transmission lines.

In order to assemble the property and rights-of-way needed for transmission lines, utility companies often rely on eminent domain – the ability to take private property for a public purpose.

What Is Happening in Maryland
In Maryland, electrical utility companies are authorized to use eminent domain through the Maryland Public Service Commission’s (MPSC) issuance of a Certificate of Public Convenience and Necessity (CPCN). See Md. Code, Public Utilities § 7- 207(b)(3)(v)(2). Once given the power to take private property, a utility company must follow the same procedures and rules as state agencies or county governments to acquire the needed property rights.

A private energy company, PSEG, is pursuing a new electric transmission line that it calls the “Maryland Piedmont Reliability Project” (MPRP). The proposed high-voltage wires and support structures will affect homes, farmland, and open space across Baltimore, Carroll, and Frederick counties.

Currently, PSEG is in federal court fighting to conduct surveys on privately-owned property over the objection of landowners. In June 2025, the federal district court allowed PSEG to go forward with its surveying activities. Affected property owners appealed, and the parties are waiting on the decision from the Court of Appeals for the Fourth Circuit. The 4th Circuit may seek guidance from the Supreme Court of Maryland before issuing an opinion.

If PSEG ultimately receives approval for the project from the MPSC, the utility company will have to pay fair value, also known as “just compensation” in legal parlance, for the property it is taking, like any condemning authority. Typically, the utility company will acquire a perpetual easement rather than a fee simple interest in the property for the path of the electrical wires.

Compensation for Property Owners
The mechanics of determining just compensation are the same for an easement. Just compensation is the fair market value of the property rights being acquired as well as the diminution in value the project causes to the remainder of the property not being taken.

The market value is a function of the property’s highest and best use. The imposition of a high-voltage transmission line may prevent the most economical use of the property, including future subdivision of farmland into residential lots. The transmission line could also split a functioning farm into awkward, hard-to-use pieces, rendering part of the property not taken essentially unusable. For a home, the aesthetic change can be substantial, altering a property’s character and thereby diminishing its value.

How MM&C Eminent Domain Attorneys Can Help
Before an electrical utility company like PSEG initiates a condemnation proceeding in court, it will first appraise the property it needs to acquire and attempt to negotiate the sale of the property with the owner. Landowners should have an attorney experienced in handling eminent domain matters review any offer to purchase property to be sure that the compensation package covers the maximum available, legally compensable damages.

Ben Schneider is an attorney at Miller, Miller & Canby in Rockville and represents Maryland landowners impacted by eminent domain. Miller, Miller & Canby’s experienced eminent domain lawyers will review any compensation offer free of charge and advise you whether the offer is fair and reasonable.

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