TOPEKA, Kan. (RFD News) — The growth of data centers in rural America is raising new legal and property rights questions as landowners are contacted to sell or lease their property.
Roger McEowen with the Washburn School of Law joined us on Monday’s Market Day Report to discuss some of the key issues landowners should consider.
McEowen says data center transactions are fundamentally different from traditional farmland sales because they involve issues ranging from option agreements and zoning to water rights, environmental compliance and eminent domain. He recommends landowners seek legal counsel early and negotiate contracts that protect their farming operations.
He says water rights often become one of the biggest legal issues, while rezoning, utility regulations and local government approvals can also affect projects.
McEowen adds easements and eminent domain may come into play, making it important for landowners to address compensation and future property impacts before signing an agreement.