Data Centers Are Moving Closer to Homes. What That Means for Buyers and Sellers

# Why this matters

# How widespread is the change Realtor.com reported that in 2015 only about a dozen ZIP codes had a large data center. By the first half of 2026 that number had grown to more than 100, with projections for further increases. HousingWire identified concentrated growth in several states, including Texas, Virginia, Georgia, Pennsylvania, Ohio, Utah, Illinois, Arizona, Indiana, and Nevada.

# What the housing data shows Comparisons between communities with large data centers and matched communities without them show no consistent, statistically meaningful change in home values. Listing prices sometimes show a modest initial increase around openings, but overall values generally track similar communities. That means a nearby data center does not automatically reduce or raise property values — local factors determine the outcome.

# Potential benefits for communities

• Infrastructure improvements: New roads, fiber, and power upgrades often accompany major projects. These can improve connectivity and access for residents.

• Economic activity: Construction and operations create jobs that can support housing demand and local businesses.

# Tradeoffs and risks for nearby residents

• Visual and physical footprint: Large buildings, substations, transmission lines, and associated construction can change the look and feel of a neighborhood.
• Noise and traffic: Cooling equipment, backup generators, construction vehicles, and increased truck activity can generate noise and activity, depending on proximity.
• Resource use: Data centers require substantial electricity, and some cooling systems use significant water. That raises questions about local infrastructure capacity and potential effects on utility costs.

J.P. Blackwood of the Ohio Consumers' Counsel noted that utility rate increases tend to be gradual and that data centers are one of several factors that can push electricity prices higher. Measures are being considered in various places to mitigate these effects.

# Practical steps for buyers

• Check what exists and what's proposed in relevant zoning and permitting records.

• Ask about planned mitigations, operating hours, and likely truck traffic during construction.
• Factor potential utility-cost trends into your budget, especially in areas with tight grid capacity.

# Practical steps for sellers

• Don't assume a data center automatically harms value.
• Compile factual information buyers will want: permit status, construction timeline, noise studies, and any planned landscaping or screening.
• Be ready to explain local infrastructure upgrades and expected impacts on services and taxes.

# Bottom line More data centers are appearing in U.S. ZIP codes, and their local impacts are mixed. For most homeowners and buyers, the sensible response is to treat each facility as a site-specific issue: gather the facts, evaluate proximity and resource implications, and weigh the likely tradeoffs for your property and budget.