When buying or selling a home, there are plenty of things to consider. School districts, commute times, neighborhood amenities, and proximity to family often top the list. But what about a large data center nearby?
Data centers are becoming more common in communities across the country, and their growth is raising new questions for buyers and homeowners. From home values to utility costs, understanding how these developments may affect a neighborhood can help you make more informed real estate decisions.
The good news? Having a data center nearby doesn't automatically mean your home's value will rise or fall. The impact depends on several factors, including the facility's location, its operations, and the surrounding community.
The good news? Having a data center nearby doesn't automatically mean your home's value will rise or fall. The impact depends on several factors, including the facility's location, its operations, and the surrounding community.
Data Centers Are Becoming More Common
According to Realtor.com, the number of ZIP codes with a large data center grew from about a dozen in 2015 to more than 100 by the first half of 2026, with further growth projected by the end of the year.
Much of this expansion is happening in states such as Texas, Virginia, Georgia, Pennsylvania, Ohio, Utah, Illinois, Arizona, Indiana, and Nevada, according to HousingWire.
As data centers become more common, buyers may encounter them while searching for a home, and existing homeowners may hear about new facilities proposed in their communities. Understanding what these developments could mean is becoming an increasingly relevant part of real estate planning.
What Could a Nearby Data Center Mean for Home Values?
For many homeowners, one of the biggest questions is whether a nearby data center could affect their property's value.
So far, research suggests that the presence of a data center alone doesn't necessarily lead to a significant change in home values. A HousingWire report found that home values in ZIP codes with data centers generally followed trends in comparable communities without them, with no statistically meaningful gains or losses.
That provides some reassuring context for homeowners. However, every neighborhood is different, and individual properties may be affected by factors such as distance from the facility, surrounding development, noise levels, and changes to the area's overall appeal.
Rather than assuming a data center will automatically help or hurt property values, it's worth looking at the specific circumstances of your neighborhood and how buyers are responding to them.
The Potential Benefits and Tradeoffs
Like other major developments, data centers can bring opportunities while also raising concerns for nearby residents.
Potential benefits include:
Economic growth: Data centers can generate economic activity, create jobs, and support nearby businesses.
Community investment: Depending on local agreements and tax policies, these facilities may contribute property tax revenue that supports public services and community improvements.
Infrastructure improvements: Development may lead to upgrades to roads, fiber-optic networks, and other infrastructure.
Things buyers and homeowners may want to consider:
Changes to the neighborhood: Large buildings, substations, transmission lines, and construction can affect the area's appearance and character.
Noise and traffic: Cooling systems, generators, construction activity, and truck traffic may be noticeable, depending on the facility's location and operations.
Electricity and water usage: Data centers can require substantial amounts of electricity and, depending on their cooling systems, water. This may raise questions about local resources, infrastructure capacity, and potential utility costs.
Electricity costs are influenced by several factors, and data centers are just one part of that picture. The potential impact on residents will depend on local utility regulations, infrastructure, energy demand, and measures taken to manage those costs.
The key is to understand the details of a specific project rather than making assumptions based on the presence of a data center alone.
What Should Buyers and Homeowners Do?
Whether you're considering a move or planning to stay in your home for years to come, being informed about nearby development can help you feel more confident about your decisions.
If you're buying a home:
Look into existing facilities as well as projects that have been approved or proposed nearby. Consider the distance from the property, potential noise, future construction, and any possible effects on your day-to-day lifestyle. If utility costs are a concern, review available information about local rates and infrastructure plans.
If you're selling your home:
Don't assume a nearby data center will automatically reduce your property's value. Instead, be prepared to answer questions buyers may have about the facility, its operations, construction timeline, and future development. Understanding the local market and how comparable homes are performing can help put those concerns into perspective.
If you're simply keeping an eye on your neighborhood:
Stay informed about local planning meetings, zoning decisions, and development proposals. Knowing what's happening in your community can help you anticipate changes and understand how they might affect your long-term plans.
Making Informed Real Estate Decisions
As data centers become more common, they're becoming another factor buyers and homeowners may want to consider when evaluating a property or planning their next move.
Every community is different, and there's no one-size-fits-all answer. That's why local insight matters.
At the Price Group, we help buyers and homeowners look beyond the property itself to understand the neighborhood, local market conditions, and factors that could influence their real estate decisions. If a data center is planned near a home you're considering or one you already own, we can help you evaluate the local market, understand what to look into, and make a plan that aligns with your goals.