Data Center Growth Raises Property Questions
Legal expert Roger McEowen discusses the complexities landowners face when considering selling or leasing property for data centers in rural America. He advises landowners to seek legal counsel early due to issues like zoning, water rights, eminent domain, and environmental compliance, which differ significantly from traditional farmland sales. Negotiating contracts that protect farming operations is crucial.
Roger McEowen, a legal expert from Washburn School of Law, addressed the increasing legal and property rights questions for landowners in rural America due to the expansion of data centers.
Speaking on Monday's Market Day Report, McEowen highlighted that transactions involving land for data centers differ substantially from conventional farmland sales. Key considerations for landowners include option agreements, zoning changes, water rights, environmental compliance, and the potential for eminent domain.
McEowen strongly recommends that landowners engage legal counsel early in the process and negotiate comprehensive contracts to safeguard their agricultural operations. He emphasized that water rights frequently emerge as a primary legal concern, alongside utility regulations and the necessity of local government approvals. Addressing compensation and potential future impacts on their property before finalizing any agreements is vital for landowners.