Your Property Risk Profile
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?
- Only the federal government — Not quite. Federal, state, AND local governments all hold this power in Ohio — and so can utility companies under certain circumstances.
- Federal, state, and local governments — plus utility companies — Correct. Ohio law currently extends eminent domain authority to governments at all levels, and utility companies can acquire land through a process overseen by the Public Utilities Commission of Ohio.
- Data center companies, if they declare public necessity — Not yet — and that's at the heart of this fight. Data center companies do NOT currently hold eminent domain authority in Ohio. But the utilities they depend on do, which is the loophole farmers fear.
- Only state government agencies — Ohio eminent domain authority is broader than state agencies alone. Local governments and utilities also have standing under current law.
What does the proposed 'deposit and build' model change?
- It eliminates the need for any court approval before taking land — The proposal still requires a court to determine 'necessity' before any taking. What changes is what happens AFTER that ruling — construction could begin immediately rather than waiting for compensation to be finalized.
- It lets construction begin while compensation appeals are still in court — Exactly right. Once a court approves the taking, the entity could break ground — even while the landowner fights for fair compensation in separate proceedings. Farmers worry this means their land gets used before they ever see a fair payout.
- It gives data centers direct eminent domain power — The proposal as written extends to 'energy infrastructure projects' — not directly to data centers. But farmers argue the language is broad enough that utility work tied to data centers could qualify.
- It removes the requirement to offer fair market value — Fair market value is still required under the proposal. The change is about TIMING — when compensation is resolved relative to when construction begins.
The Ohio Business Roundtable says its proposal is modeled after how many other U.S. states?
- 12 states — The actual number is much higher — making Ohio the outlier, not the pioneer. 45 states already operate under some version of deposit and build, according to the Roundtable.
- 28 states — Higher than that — the Roundtable says Ohio would be joining 45 other states, meaning the vast majority of the country already works this way.
- 45 states — Right. The Ohio Business Roundtable argues that 45 states already use this model, framing Ohio's current system as an outlier that slows development.
- All 50 states — Not all 50 — but close. The Roundtable cites 45 states, which is why proponents argue Ohio is lagging behind and creating unnecessary project delays.
Which Ohio agency controls the siting of utility facilities like power lines and wind farms?
- Ohio Department of Agriculture — The Department of Agriculture advocates for farmers but doesn't control utility siting. That authority belongs to the Ohio Power Siting Board — which has a big say in where energy infrastructure goes.
- Ohio Power Siting Board (OPSB) — Correct. The Ohio Power Siting Board controls where utility facilities — including power lines, some gas pipelines, and wind farms — can be installed. Data centers require heavy electrical infrastructure, making OPSB decisions central to this fight.
- Ohio Environmental Protection Agency — The Ohio EPA handles environmental compliance but doesn't make siting decisions for power infrastructure. The Ohio Power Siting Board is the key agency here.
- Ohio General Assembly directly — Lawmakers set the rules, but day-to-day siting authority rests with the Ohio Power Siting Board. That's why lobbying at the Statehouse — as the Ohio Business Roundtable does — is so important to this policy fight.
State Sen. Brian Chavez called data centers a 'public necessity.' Why does that framing matter to farmers?
- It doesn't — necessity and public use are unrelated legal concepts — Actually, the two are closely linked under eminent domain law. Eminent domain requires a 'public use' justification — and if courts interpret 'public necessity' as satisfying that standard, the door opens to broader land-taking authority.
- It could qualify data centers as a 'public use,' potentially opening the door to eminent domain — Exactly what farmers fear. Once something is deemed a 'public necessity,' courts may accept that as satisfying the 'public use' requirement for eminent domain. Ohio Farm Bureau's Evan Callicoat warned directly: that framing could pave the way for data center-adjacent land seizures.
- It gives the legislature authority to set data center locations directly — The legislature sets the legal framework, but courts interpret what qualifies as 'public use.' Chavez's 'necessity' framing matters because it influences how judges might rule on future eminent domain cases involving data center infrastructure.
- It immediately grants data centers eminent domain authority under Ohio law — Not immediately — but the concern is that 'necessity' language, over time, shifts the legal interpretation of 'public use,' gradually expanding who can invoke eminent domain. That's a slow-burn risk, not a flip-the-switch change.
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 Law | Proposed Change | 45 Other States | |
|---|---|---|---|
| When construction can begin | After compensation is fully resolved | Immediately after court approves necessity | Immediately after court approves necessity |
| Who controls utility siting | Ohio Power Siting Board | Ohio Power Siting Board (unchanged) | Varies by state |
| Landowner compensation timing | Settled before construction | Appeals continue during construction | Appeals continue during construction |
| Ability to delay construction via appeal | Yes — court fight halts project | No — project proceeds regardless | No — project proceeds regardless |
| Data centers hold eminent domain? | No | No (but utilities they rely on do) | Varies by state |
| Farm Bureau position | Cautious — limited protections exist | Strongly opposed | Fought 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
- Step 1 — Utility approaches landowner with a 'fair market value' offer
- Step 2 — Owner refuses — utility files in court to establish 'necessity'
- Step 3 — Court hearing: utility must prove public necessity for the taking
- Step 4 — Court rules in utility's favor — appraised value deposited in court account
- Step 4A — CURRENT LAW: Owner can appeal — construction is BLOCKED during appeal
- Step 4B — PROPOSED CHANGE: Construction begins immediately — appeal continues separately
- Step 5 — Compensation appeal resolved — could take months or years
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
- 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.
- 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.
- 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.
- 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.
- 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
- Ohio Farm Bureau: Legal resources, legislative alerts, and advocacy for Ohio landowners facing utility or eminent domain proceedings.
- Ohio Power Siting Board: Search active utility siting cases and file public comments on projects near your property.
- Public Utilities Commission of Ohio (PUCO): Monitor utility company land acquisition proceedings and rate cases that affect your area.
- Ohio General Assembly: Find your state representative and senator to share your position on 'deposit and build' before any bill is filed.
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
- Primary source: local-news — Morgan Trau
- Ohio Farm Bureau — Statements on eminent domain protections and 'deposit and build' opposition from Evan Callicoat, OFB legislative counsel
- Ohio Power Siting Board — Authority over utility facility siting in Ohio, including power lines, gas pipelines, and wind farms
- Public Utilities Commission of Ohio — Authority to assist utility companies in land acquisition proceedings under Ohio law
- Ohio Business Roundtable — Proposal recommending 'deposit and build' eminent domain changes for energy infrastructure projects; cited 45-state model as precedent
- Ohio Revised Code — Eminent Domain — Current Ohio law governing public use determinations, necessity hearings, and compensation requirements in land acquisition proceedings