No single 'data center effect' on home values, Realtors find
A new report from the National Association of Realtors indicates there is no single "data center effect" on local housing markets, challenging the idea that data centers guarantee economic benefits. While counties with high data center concentration show higher home values and job growth, these are not necessarily caused by the facilities. The report also highlights concerns among real estate clients about rising utility costs, which the White House is attempting to address with a voluntary Ratepayer Protection Pledge.
A new report from the National Association of Realtors challenges the notion that data centers uniformly boost local economies, finding no single "data center effect" on housing markets. Chief economist Lawrence Yun stated that the impact varies significantly by market. While counties with 10 or more data centers, such as Loudoun County, Virginia, show higher median home values ($431,750 vs. $174,500) and faster employment growth (16% vs. 2%) over the past decade, the report cautions these trends predate the data center boom, attributing them to existing wealth and demographics.
The report also complicates claims of lower taxes, with only a fifth of Realtors surveyed aware of tax breaks tied to data centers and some questioning the local benefit. A primary concern for real estate clients is utility costs; residential electricity rates rose faster in data center-heavy counties from 2020-2024. The White House, under President Trump, has introduced a voluntary Ratepayer Protection Pledge, encouraging utilities, governors, and tech firms to ensure data centers cover their own power and water costs, preventing households from footing the bill. However, energy expert Travis Fisher of the Cato Institute criticized the pledge's lack of enforcement, as rates are set by state regulators. Public skepticism is high, with a Consumer Reports survey finding 75% of Americans lack confidence in companies upholding the pledge.
The report notes that data centers remain highly concentrated, with 92% of U.S. counties having none, and 34 counties housing 10 or more facilities. Loudoun County, Virginia, leads with 213 data centers, comprising about 14% of the national total. Recent growth has also been observed in central Ohio's Licking and Franklin counties, Santa Clara County, California, and Dallas County, Texas.