Data Centers Are Moving Closer to Homes. What Does That Mean for You?

What could having a large data center nearby mean for your home, your utility costs, or your next real estate move?

Data centers are expanding into more communities, but the information available so far doesn’t show that simply having one nearby automatically raises or lowers home values. For buyers and homeowners, the bigger consideration is understanding the specific facility, its proximity, infrastructure needs, and potential impact on the surrounding area.
 

Data Centers Are Showing Up in More Communities

Data centers probably weren’t something you expected to consider when buying or selling a home. But as these facilities expand into more communities, they’re becoming another factor worth understanding.

According to Realtor.com, only about a dozen ZIP codes had a large data center—defined as 50+ megawatts—in 2015. By the first half of 2026, that number had climbed to more than 100 ZIP codes, with further growth projected by the end of the year.



That’s a significant change in just over a decade.

The information provided also shows that much of the growth is occurring in Texas, Virginia, Georgia, Pennsylvania, Ohio, Utah, Illinois, Arizona, Indiana, and Nevada.

As data centers become more common, more buyers may encounter one while searching for a home. Existing homeowners may also learn that a new facility is being proposed or developed near their community.

Naturally, that raises questions about what these facilities could mean for real estate.
 

Do Data Centers Affect Home Values?

One of the biggest questions surrounding data centers and home values is whether living near one could negatively affect the value of a property.

Based on the information available so far, there’s no evidence that says a nearby data center automatically causes home values to fall.

Research comparing communities with large data centers to similar communities without them found that home values in ZIP codes with data centers generally tracked their matched communities. The research found no statistically meaningful gains or losses, while listing prices experienced a modest initial increase around openings.

That distinction matters.

It means the presence of a data center alone hasn’t historically been enough to dramatically push home values higher or lower.

Of course, that doesn’t mean every home or neighborhood will respond exactly the same way.

The distance between a home and the facility may matter. The surrounding development may matter. And the characteristics of the individual data center may matter.

That’s why buyers and homeowners should look beyond the simple question of whether a data center exists nearby and consider the specifics of the development.
 

Data Centers Near Homes Can Bring Tradeoffs

Like other forms of major development, data centers near homes can come with potential benefits as well as considerations.

Understanding both sides can help you evaluate what a particular development might mean rather than assuming that every data center will have the same impact.
 

Potential Economic and Infrastructure Benefits

A large data center may become part of a broader growth story for an area.

These developments can generate substantial property tax revenue that may be used for improvements within the community. Major projects can also bring infrastructure investments with them.

That could include improvements involving roads, fiber, power infrastructure, and other systems needed to support development.

Data centers can also create economic activity through jobs. That employment can contribute to local housing demand and support nearby businesses.

For homeowners, these factors are worth considering when evaluating how a larger development fits into the long-term direction of an area.
 

What About the Potential Downsides?

There are also practical considerations that buyers and homeowners may want to investigate.

First, data centers can be physically significant developments. Large facilities, transmission lines, substations, and ongoing construction may change the appearance of the surrounding area.

Noise can also be a factor.

Depending on your proximity to a facility, cooling equipment, generators, construction activity, and truck traffic may be noticeable.

That doesn’t mean every home near a data center will experience these issues. The impact can depend heavily on the facility itself and how close the property is to the development.

This is one reason buyers should evaluate a specific property and its surroundings rather than making a decision based only on the fact that a data center exists somewhere in the ZIP code.
 

Could Data Centers Affect Your Utility Bills?

Another important part of the conversation around data centers and real estate involves electricity and water usage.

Data centers can require significant amounts of electricity. Depending on the type of cooling system being used, they may also require water.

That increased demand can raise questions about the capacity of local infrastructure and whether growing electricity demand could eventually influence what residents pay.

But this isn’t necessarily a simple cause-and-effect relationship.

J.P. Blackwood, Public Affairs Liaison and Media Spokesperson for the Ohio Consumers’ Counsel, explained that utility rate increases tend to happen gradually and that multiple factors can contribute to higher electricity prices.

Data centers can be one of those factors, but they aren’t necessarily the only one.

There are also steps being taken around the country to mitigate the potential effects of data centers.

For homeowners, the key takeaway is that utility impacts can occur, but the outcome depends on where you live and what policies, regulations, and infrastructure are in place locally.
 

What Should You Consider When Buying Near a Data Center?

If you’re buying a home and discover a data center nearby—or learn that one has been approved or proposed—it’s worth gathering more information before deciding what that means for you.

Start by determining what already exists and what may be coming.

Consider factors such as:
 

• How close the property is to the data center
• Potential noise from equipment, generators, construction, or traffic
• Planned infrastructure and future development
• The location of transmission lines or substations
• Whether utility costs are something you want to factor into your budget

The goal isn’t necessarily to avoid a property simply because there’s a data center nearby.

Instead, it’s about having enough information to make a decision based on the specific property and development.

Two homes in the same general area could have very different relationships to a data center based simply on their proximity and surroundings.
 

What Should You Consider When Selling a Home?

If you’re selling a home near a data center, you also shouldn’t automatically assume the development has negatively affected your property’s value.

The information available so far doesn’t support that conclusion across the board.

However, prospective buyers may still have questions.

Being prepared with factual information about the nearby facility can help you address those questions more effectively.

That could include understanding the facility’s location, construction timeline, potential noise considerations, and future development plans.

Instead of making assumptions about how buyers will react, having the facts gives you a stronger foundation for discussing the property and its surroundings.
 

Why This Is Becoming a Bigger Real Estate Conversation

The rapid expansion of data centers means this topic is unlikely to disappear from real estate conversations.

In 2015, large data centers were located in only about a dozen ZIP codes. By the first half of 2026, they were present in more than 100.

As that footprint continues to expand, more buyers and sellers will encounter these developments directly.

For buyers, a data center could become another item to research alongside the many other characteristics of a property and its surrounding area.

For sellers, it could become another topic prospective buyers ask about.

And for existing homeowners, a proposed development may raise questions about infrastructure, utilities, noise, and future growth.

The important thing is to separate those legitimate questions from assumptions.
 

The Bottom Line

Data centers are moving closer to homes, but the information available so far doesn’t show that their presence automatically causes home values to rise or fall.

There can be tradeoffs. Data centers may bring economic activity, infrastructure improvements, and property tax revenue, while also creating considerations involving noise, construction, power infrastructure, electricity demand, and the appearance of an area.

Ultimately, the details of the individual facility and property matter.

As The McClung Group, Realtors serving The Woodlands, we believe understanding what’s happening around a property is an important part of making an informed real estate decision. If you’re buying, selling, or own a home near a data center—or you’ve heard that one may be coming to your area—we can help you look at the situation in the context of your real estate goals.
 

Have Questions About a Data Center Near Your Home?

If a data center is already nearby or one is being proposed in your area, you don’t have to make assumptions about what it could mean for your next move.

Contact The McClung Group to talk through your real estate questions and what the surrounding development could mean for your buying or selling plans.
 

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