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

Data centers probably weren’t on your list of things to think about when buying or selling a home.

School districts? Sure. How close you are to family? Absolutely. A large building full of computer servers down the road? Probably not.

But that may be changing.

Data centers are popping up in more communities across the country. And as they do, buyers and homeowners are starting to wonder what having one nearby could mean for everything from home values to utility bills. So, let’s get into what the data actually says. Because there’s a lot more nuance here than if they’re “good” or “bad.”

Data Centers Are Showing Up in a Lot More ZIP Codes

According to real estate research and market tracking by Realtor.com and HousingWire, the presence of a data center does not automatically cause a statistically meaningful rise or drop in nearby home values. While ZIP codes with large facilities generally match surrounding market growth trends, proximity to data centers presents distinct trade-offs: potential community infrastructure upgrades and property tax benefits balanced against visual industrial impact, cooling equipment noise, and regional utility demand considerations.

That’s a pretty dramatic increase in just over a decade. HousingWire shows a lot of that growth is in Texas, Virginia, Georgia, Pennsylvania, Ohio, Utah, Illinois, Arizona, Indiana, and Nevada. 

And that ramp up explains why this is becoming a real estate conversation. More buyers are going to encounter a data center during their search. More homeowners are going to hear about one being proposed nearby. 

And both groups are going to want to know what that could mean for them.

The Big Question: What About Home Values?

One of the first concerns homeowners and buyers may have is: could a nearby data center hurt home values? So far, there’s no evidence that says it automatically will.

Researchers compared communities that have large data centers to similar communities without them. A recent HousingWire article reports:

“. . . home values in data center ZIP codes generally tracked their matched communities — with no statistically meaningful gains or losses. Listing prices showed a modest initial increase around openings . . .”

That’s important context. Historically, simply having a data center nearby hasn’t been enough to send home values dramatically higher or lower.

That doesn’t mean every property will react the same way. Proximity, the surrounding development, and the specific facility can all matter. But for the typical homeowner or buyer, the data so far doesn’t point to an automatic impact on home values.

Living Near a Data Center Can Come with Tradeoffs

Like any major development coming to town, data centers can bring benefits along with things buyers and homeowners will want to consider.

On the plus side:

They may be part of a bigger growth story. A data center can usher in broader development in an area and substantial property tax revenue that can be used to improve the community. 

Infrastructure may get an upgrade. New roads, fiber, power infrastructure, and other improvements can come along with major development. 

They can generate economic activity. A data center can generate jobs which in turn fuels local housing demand and supports local businesses. 

On the flip side:

They’re not exactly invisible. Large facilities, transmission lines, substations, and construction can change the look and feel of an area. 

Noise can matter. Cooling equipment, generators, construction, and truck traffic may be noticeable depending on how close you are. 

They use more resources. These facilities can require significant electricity and, depending on the cooling system, water. That can raise questions about local infrastructure and whether growing electricity demand could affect what residents pay. 

On that last point, J.P. Blackwood, Public Affairs Liaison and Media Spokesperson for the Ohio Consumers’ Counsel (OCC), explained his take on what consumers need to know about data centers and their potential to impact utility costs to HousingWire:

“Utility rate increases tend to be gradual, and so that’s what I would expect here. Again, a number of factors can drive electricity prices higher and are driving them higher, and this is one of them. There are steps being taken around the country to mitigate the effects of data centers.”

Basically, they’re just one factor that can have an impact. And the key word there is “can” because it depends on where you live and what rules are in place in your area.

So, What Should Buyers and Homeowners Do?

If you’re buying, find out what’s already there – and what’s approved or proposed nearby. Consider the facility’s proximity, potential noise, future development, and whether utility costs are something you want to factor into your budget.

If you’re selling, don’t assume a nearby data center automatically hurts your home’s value. But buyers may have questions. Knowing the facts about the facility, construction timeline, noise, and future plans can help you address those concerns upfront.

Frequently Asked Questions

Q: How does working remotely help first-time buyers afford a home?

A: Remote work disconnects your income source from your physical location. By earning a salary calibrated to major job markets while living in an area with a significantly lower cost of living, you reduce daily expenses, accelerate your savings, and access lower overall home prices.

Q: Which states offer the lowest cost of living for remote homebuyers?

A: States like Mississippi, West Virginia, Kansas, Alabama, and Oklahoma consistently rank among the most affordable, with overall living costs ranging from 10% to 17% below the national average.

Q: What infrastructure factors should remote workers evaluate before buying a home?

A: Beyond property prices, remote buyers should verify high-speed fiber internet availability, reliable cell coverage, proximity to regional airports, local tax rates, and nearby daily amenities like healthcare, groceries, and recreational spaces.

Bottom Line

As more data centers pop up, they're becoming another piece of the puzzle buyers and homeowners need to understand.

Have a data center nearby or one coming soon? Talk to a local real estate agent about what it could mean for your home or your next move.