If you’ve never thought about data centers when buying or selling a home, you’re not alone. But as artificial intelligence and cloud computing continue to expand, large data centers are being built in more communities across the country—and increasingly closer to residential neighborhoods.
That raises an important question for homeowners:
Could a data center affect your home’s value, your neighborhood, or your future plans to sell?
The answer isn’t as simple as “yes” or “no.” New research provides some reassuring news, while also highlighting several issues homeowners should keep an eye on.
Data Centers Are Expanding Into More Communities
The growth has been dramatic.
According to Realtor.com research, the number of large U.S. data centers—facilities requiring at least 50 megawatts of power—has increased more than sevenfold since 2018. There were about 49 large facilities operating in 2018; by 2026, that number had reached roughly 347.
As a result, the share of U.S. home sales occurring within five miles of a large data center has more than doubled, from approximately 0.67% in 2018 to about 1.5% in 2026. Realtor.com projects that figure could approach 2.3% by 2027 based on the current construction pipeline.
In other words, this isn’t simply about people choosing to live closer to data centers.
The data centers are moving into more communities.
Will a Data Center Hurt Your Home’s Value?
This is probably the biggest question for homeowners.
So far, the available data doesn’t show a clear negative effect.
Realtor.com’s analysis looked at 43 ZIP codes that received large data centers between 2019 and 2025 and compared them with similar communities without data centers.
The result?
Home prices generally followed the same trajectory as comparable neighborhoods.
There was no statistically meaningful evidence that homes near newly activated data centers consistently lost value compared with similar areas. Listing prices showed a similar pattern.
That’s encouraging—but it doesn’t mean every individual property will be unaffected.
Real estate is highly local.
A data center several miles away may barely register with buyers. A massive facility directly behind a residential neighborhood could be a very different story.
Location Matters More Than the Headline
When evaluating a property near a data center, buyers are likely to consider several factors:
- How close is the facility?
- Can it be seen from the property?
- Is there noticeable noise?
- Is there increased truck or vehicle traffic?
- Are cooling systems or generators operating nearby?
- How much additional construction is planned?
- Could electricity or utility costs be affected?
- What impact could the facility have on the surrounding neighborhood over time?
This is why simply saying a home is “near a data center” doesn’t tell the whole story.
One mile away and next door are two very different real-estate situations.
The Bigger Concern May Be Infrastructure
One of the most significant concerns surrounding data-center expansion isn’t necessarily home prices—it’s the infrastructure required to support these enormous facilities.
Data centers consume substantial amounts of electricity and, depending on their cooling systems, can also require significant water resources.
Recent National Association of REALTORS® research found that 61% of surveyed REALTORS® said their clients were concerned data centers could increase energy costs. Another 56% reported concerns about water usage.
Those concerns are increasingly becoming part of local conversations about development.
For homeowners, this means it can be worthwhile to pay attention to local planning-board meetings, zoning proposals, utility discussions, and major infrastructure projects—not just current construction.
Could Data Centers Actually Bring Benefits?
There can be benefits, too.
Large facilities can generate construction activity, jobs, tax revenue, and additional economic activity. They may also encourage infrastructure improvements and new development in surrounding areas.
In some communities, additional housing construction has occurred around new data centers as developers respond to anticipated demand from workers and businesses.
Realtor.com’s research found that housing inventory in communities with new data centers actually held up better than in comparable neighborhoods several years after activation.
So the impact isn’t automatically negative.
It depends heavily on where the facility is located, how it is designed, how the community manages development, and how close individual homes are to it.
What Does This Mean If You’re Thinking About Selling?
If you’re a homeowner considering selling, don’t panic simply because a data center is planned or operating somewhere in your area.
Instead, look at the property from a buyer’s perspective.
A professional pricing analysis should consider:
1. The exact proximity to the facility
Distance matters. So does visibility and the direction of the property relative to the facility.
2. Buyer perception
Even when statistics don’t show a measurable decline in values, individual buyers may have strong opinions about living near industrial infrastructure.
3. Comparable sales
Recent sales in the immediate area can provide much more useful information than broad national statistics.
4. Future development
A proposed data center may be only one part of a larger development plan. Understanding what is planned around it can be just as important as knowing what exists today.
5. How the property is marketed
If buyers have concerns, your home’s presentation, pricing strategy, marketing exposure, and negotiation strategy become even more important.
What Should Buyers Do?
If you’re purchasing a home near a proposed or existing data center, don’t automatically eliminate the property.
Instead, do your homework.
Ask about:
- Existing and proposed data-center projects
- Zoning and land-use approvals
- Planned expansions
- Noise and traffic
- Utility infrastructure
- Property taxes
- Local development plans
- Environmental studies and approvals
- Nearby commercial or industrial projects
A good real estate professional can also help you identify questions that may not be obvious during a typical showing.
The Bottom Line for Homeowners
Data centers are becoming a new factor in the real estate conversation, particularly as AI drives demand for massive computing infrastructure.
The good news is that current research does not show a broad, measurable decline in home values simply because a large data center opens nearby.
But the story is still developing.
The newest facilities are becoming larger and are increasingly being built in lower-density communities. At the same time, concerns about electricity, water, noise, traffic, and neighborhood character are growing.
For homeowners, the smartest approach isn’t to assume a data center is either good or bad for property values.
It’s to understand the specific property, the specific location, and the specific development plans.
And when you’re preparing to sell, that’s where local market knowledge matters.
If you’re wondering how a nearby development, infrastructure project, or other neighborhood change could affect your home’s value, a professional local market analysis can give you a much clearer picture than national headlines ever could.
