Ohio farmers fear new proposal would allow data centers to take property

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Here's the part that makes Ohio farmers the most anxious: it's not necessarily that a data center shows up at their door. It's the web of power lines, substations, and transmission corridors that data centers require — and those utilities DO hold eminent domain authority under Ohio law.

The Ohio Business Roundtable's proposal would let those utility companies — once a court approves the land seizure — immediately begin construction while compensation appeals wind through the courts. For farmers, that could mean bulldozers rolling through their fields while lawyers argue about fair value for years.

Under Ohio's current eminent domain law, a utility company must approach a property owner with a 'fair' market price offer. If the owner refuses, the utility files in court and must prove the taking is 'necessary.' Only after the court rules in the utility's favor — and deposits the appraised value into a court account — can the landowner appeal for more. During all of this, construction sits still.

That last part is exactly what the Ohio Business Roundtable wants to change. Their 'deposit and build' model, used in 45 other states, would let construction begin the moment a court finds necessity — not after the compensation is settled. Ohio Farm Bureau's Evan Callicoat argues that's the equivalent of handing over your land without a guarantee of ever being fairly compensated.

How Well Do You Know Ohio Eminent Domain Law?

Five questions. The answers might surprise you.

Right now, who in Ohio can take private land through eminent domain?

What does the proposed 'deposit and build' model change?

The Ohio Business Roundtable says its proposal is modeled after how many other U.S. states?

Which Ohio agency controls the siting of utility facilities like power lines and wind farms?

State Sen. Brian Chavez called data centers a 'public necessity.' Why does that framing matter to farmers?

That quiz just walked you through the same legal maze Ohio farmers are trying to navigate in real time. The Ohio Business Roundtable's Nick Rhodes insists 'deposit and build' wouldn't realistically apply to data centers because they likely don't meet the 'public use' threshold. But Farm Bureau attorney Evan Callicoat points out that the proposal's language is wide enough to swallow that argument whole — and once the legal precedent shifts, it rarely shifts back.

Sen. Chavez's answer — calling data centers a 'public necessity' — is the thread that ties it all together. Courts pay attention to how elected officials characterize technology and infrastructure. If Ohio's lawmakers widely frame data centers as necessary public infrastructure, future judges may feel far more comfortable blessing utility takings that serve them.

Current Ohio Law vs. Proposed 'Deposit and Build' Model

Current Ohio LawProposed Change45 Other States
When construction can beginAfter compensation is fully resolvedImmediately after court approves necessityImmediately after court approves necessity
Who controls utility sitingOhio Power Siting BoardOhio Power Siting Board (unchanged)Varies by state
Landowner compensation timingSettled before constructionAppeals continue during constructionAppeals continue during construction
Ability to delay construction via appealYes — court fight halts projectNo — project proceeds regardlessNo — project proceeds regardless
Data centers hold eminent domain?NoNo (but utilities they rely on do)Varies by state
Farm Bureau positionCautious — limited protections existStrongly opposedFought in many states, outcomes vary
To allow any other type of development to have that type of structure and process would just be very, very bad for our state. Our farmers are definitely concerned about that.Evan Callicoat, Ohio Farm Bureau

The Farm Bureau is careful to say this isn't anti-data-center. Ohio needs digital infrastructure — and farmers know it. What they're drawing a hard line on is the idea that economic development, however important, justifies seizing private property before the owner has been paid and before their rights have been established in court.

For Greater Cincinnati's rural fringe — the farms stretching across Clermont, Brown, Clinton, and Warren counties — this isn't abstract. Transmission lines serving new data center campuses in Central Ohio or Southwest Ohio pass through working agricultural land. The moment 'necessity' becomes a lower bar to clear, those farmers become the most vulnerable link in the supply chain.

How the Eminent Domain Process Works — Step by Step

Claims vs. Reality in the 'Deposit and Build' Debate

Data centers can already use eminent domain to take Ohio farmland.

Verdict: false

Data center companies do not currently hold eminent domain authority in Ohio. However, the utilities they require — power lines, substations, transmission infrastructure — do. That indirect pathway is what farmers fear the proposal would widen.

The 'deposit and build' model is an extreme or fringe proposal.

Verdict: mostly false

45 states already use some version of this model, according to the Ohio Business Roundtable. Ohio is currently in the minority. That doesn't mean the proposal is without risk — but characterizing it as radical misses the national context.

Landowners would get paid before construction starts under the new proposal.

Verdict: false

Under the proposed model, an appraised value is deposited into a court account, but the landowner's compensation fight continues in court — sometimes for years — while construction is already underway on their property.

Calling data centers a 'public necessity' automatically triggers eminent domain authority.

Verdict: mixed

Not automatically — but the framing matters legally. Eminent domain requires a 'public use' justification. If courts begin treating data center infrastructure as satisfying that standard, the legal pathway for takings broadens. That's why the Farm Bureau is watching Sen. Chavez's language carefully.

Who Is the Ohio Business Roundtable — and Why Does It Matter Here?

The Ohio Business Roundtable is one of the state's most influential lobbying organizations, representing large employers and major corporations with a direct line to Statehouse leadership. When the Roundtable puts a policy recommendation in a document, lawmakers take note — even when that recommendation doesn't make it into a bill right away.

Their push for 'deposit and build' is part of a broader campaign to accelerate data center development in Ohio, which has become a top target for tech companies seeking large land parcels, access to power grids, and favorable tax treatment. Ohio has already passed significant data center incentive legislation in recent years, making this the next frontier in that policy push.

The Farm Bureau, on the other side, represents roughly 500,000 member families across Ohio — a formidable political counterweight. Their opposition to this specific proposal doesn't signal opposition to tech development. It signals a red line on property rights that Ohio legislators historically tread carefully around, given the state's deep agricultural identity.

What Ohio Property Owners Can Do Right Now

  1. Know your county's utility corridor map — Contact your county auditor or engineer's office and ask about any pending easement applications, OPSB proceedings, or utility siting notices near your property. This information is public record.
  2. Register with the Ohio Farm Bureau — Even if you're not a full-time farmer, Farm Bureau membership gives you access to legal resources, legislative alerts, and collective advocacy on property rights issues at the Statehouse.
  3. Contact your state representative and senator — Let them know where you stand on 'deposit and build.' The proposal is still in the lobbying stage — no bill has been filed. This is the most effective moment to weigh in, before votes are scheduled.
  4. Consult a property rights attorney before any utility conversation — If a utility company approaches you about an easement or acquisition, do not sign anything without independent legal counsel. Ohio law gives you the right to negotiate and challenge — but you need representation to use it effectively.
  5. Track OPSB and PUCO proceedings online — The Ohio Power Siting Board and Public Utilities Commission of Ohio both publish active cases online. If a project is being proposed near your land, you can file comments and participate in hearings as an intervening party.

Protect Your Property Rights — Key Contacts

Sen. Chavez isn't ready to move on 'deposit and build' — he said as much directly. But the Ohio Business Roundtable's document is already in circulation at the Statehouse, and the data center industry's momentum in Ohio policy circles has been nearly unstoppable for three years running. 'Not ready yet' is not the same as 'no.'

For Ohio's farm families, this fight is about more than one bill. It's about who gets to define what counts as a public good — and whether the answer to that question can be used to bulldoze a century-old family farm while the lawyers sort out what it was worth. The Ohio Farm Bureau's message to lawmakers is simple: don't hand that power to anyone, for any reason, until the check clears.

Sources & References

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