Data Centers: What They Actually Mean for Home Values

Data centers probably weren’t on your list of things to think about when buying or selling a home in North County. 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 whether they’re “good” or “bad.”

Data Centers Are Showing Up in a Lot More ZIP Codes

According to Realtor.com, back in 2015, only about a dozen ZIP codes had a large data center. But by the first half of 2026, that number had climbed to more than 100, and it’s projected to rise even further by the end of the year.

That’s a pretty dramatic increase in just over a decade. HousingWire shows a lot of that growth is concentrated in states like Texas, Virginia, Georgia, Pennsylvania, and Ohio, among others. And that ramp up explains why data centers are becoming a real estate conversation. More buyers are going to encounter one 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 whether nearby data centers could 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 that home values in those ZIP codes generally tracked their matched communities, with no statistically meaningful gains or losses, though listing prices showed a modest initial increase around openings.

That’s important context. Historically, simply having data centers 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 Data Centers 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.

They may be part of a bigger growth story. This kind of development can usher in broader growth for 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 too, including jobs, which in turn fuels local housing demand and supports local businesses.

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, which 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, explained his take on what consumers need to know to HousingWire: utility rate increases tend to be gradual, and a number of factors can drive electricity prices higher, with this being one of them, though there are steps being taken around the country to help mitigate the effects.

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 facility automatically hurts your home’s value. But buyers may have questions. Knowing the facts about it, the construction timeline, noise, and future plans can help you address those concerns upfront.

Bottom Line

As more data centers pop up, they’re becoming another piece of the puzzle buyers and homeowners in North County need to understand. Nothing here says one is coming to your street, only that it’s worth knowing the facts if one does. If a neighbor is wondering about this too, feel free to pass this along, or let’s connect if you want to talk through what it could mean for your home or your next move.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Jess & Co. Real Estate, LLC does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Jess & Co. Real Estate, LLC will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.