Data Centers Are Moving Closer to Homes. What Does That Mean for You?
Data centers are expanding into more communities, prompting questions about their impact on nearby homes and utility costs. Research indicates no automatic rise or fall in home values, but homeowners should consider specific factors like proximity, noise, and infrastructure demands. While data centers offer economic benefits and tax revenue, they also bring considerations regarding appearance, noise, and increased electricity and water demand.
The McClung Group blog on Woodlands Online discussed the increasing presence of large data centers near residential areas and their potential impact on homeowners and real estate. The article highlights that the number of U.S. ZIP codes with data centers exceeding 50 megawatts grew from about a dozen in 2015 to over 100 by mid-2026, with significant growth in states like Texas, Virginia, and Georgia. This expansion prompts questions for buyers and sellers about property values, utility costs, and community changes.
Contrary to common assumptions, available research suggests that simply having a data center nearby does not automatically cause home values to fall, with some areas even experiencing modest initial increases in listing prices. However, the specific characteristics of the facility, its proximity to homes, and local infrastructure matter significantly. Data centers can bring benefits such as substantial property tax revenue, infrastructure improvements (roads, fiber, power), and job creation, contributing to local economic growth.
Conversely, potential downsides include significant physical developments, changes to the area's appearance, and noise from cooling equipment, generators, and increased traffic. Data centers also demand substantial electricity and, depending on cooling methods, water, raising concerns about local utility capacity and potential rate increases. J.P. Blackwood, Public Affairs Liaison for the Ohio Consumers' Counsel, noted that utility rate changes are gradual and multi-faceted. The article advises homeowners and buyers in areas like The Woodlands to gather specific information about proposed or existing facilities to make informed real estate decisions, rather than relying on general assumptions about data center impacts.