Should you buy a house near a data center?

Over the past few months, data center protests have grown in number and fervor.

In response, counties have been passing new rules restricting where data centers can be built.

So, if you're shopping for a home, should you avoid neighborhoods with data centers nearby?

A new report from the National Association of Realtors addresses this question.

What the data actually shows about home values near data centers

The numbers behind this question are new. NAR's 2026 Data Center Impact Report analyzed more than 3,200 U.S. counties, combining county-level data with a survey of real estate agents working in these markets.

The headline finding: counties with 10 or more data centers have a median home value of $431,750, compared to $174,500 in counties with none. Values in those high-concentration counties grew 95% over the past decade, versus 64% elsewhere. Employment also grew faster — about 16% from 2014 to 2024, compared to 2% in counties without data centers.

That sounds like a clear case for buying near a data center. But NAR's lead researcher, Nadia Evangelou, was explicit about the limits of the data: correlation here doesn't prove causation.

Many of the counties with the heaviest concentration — clusters in Northern Virginia, Silicon Valley, and around Phoenix — were already high-income tech hubs before the facilities arrived. The data center may be a symptom of a strong local economy as much as a cause of rising values, which matters for determining a home's fair market value: a nearby facility isn't a reliable predictor on its own.

The other side of the ledger: noise, water use, and utility costs

The same report is candid about the tradeoffs. Data centers run cooling systems around the clock, and Realtors surveyed cited noise, water use, and ongoing construction as the concerns they hear most often near individual sites.

Perceptions were split: 25% of surveyed Realtors saw a positive effect on nearby home values, while 22% saw a negative one, underscoring how much this depends on the specific site, not the broader trend.

Utility costs are the most measurable downside. Residential electricity rates rose 21.4% from 2020 to 2024 in counties with 10 or more data centers, compared to 15.7% in counties with none.

Data centers are enormous electricity consumers, and the cost of building out power infrastructure for them can get passed along to residential ratepayers. NAR notes the pattern isn't universal, but the trend line matters if you're budgeting for the next decade in a home.

Higher utility bills don't affect your mortgage principal and interest, but they hit your monthly budget the same way property taxes factor into your total housing payment. If a build-out is planned nearby, ask the local utility whether residential rate increases are expected.

Why the effect varies so much by location

Data centers are heavily concentrated. NAR found 92% of U.S. counties have no mapped data center at all, and only about 1% have 10 or more. The biggest clusters sit in Loudoun and Prince William counties in Northern Virginia — roughly 19% of all mapped data centers nationwide — followed by Silicon Valley, central Ohio, the Phoenix area, and central Washington.

That concentration is why national averages can mislead an individual buyer. A single campus on the edge of a small town has a different footprint (think noise, traffic, water draw, local tax base) than one facility among dozens in a built-out tech corridor.

Local zoning, distance to the nearest residential parcel, and whether the grid was upgraded specifically for the project all shape the real-world effect on a given street, not just the county statistic.

Commercial impacts were also more consistently positive than residential ones: 50% of surveyed Realtors reported increased nearby commercial property values, underscoring how much less uniform the residential picture is.

How to check if a data center is nearby or planned

• Check the county planning or zoning office. Large projects typically require zoning approval, and permit applications are public record.
• Look for utility company notices. Utilities sometimes file separate requests for infrastructure upgrades tied to large commercial power users.
• Search local news for the address or nearby industrial parcels. Approval hearings are usually covered well before construction starts.
• Ask the listing agent directly. Agents working an active market are often aware of pending projects.
• Visit the property at different times of day. If a facility is already operating nearby, cooling-system noise is most noticeable in the evening.

A standard home inspection won't evaluate a neighboring data center, but a home inspection checklist can help keep the rest of your due diligence organized alongside this research.

What to weigh before making an offer

• Value trend vs. site-specific risk. County-level appreciation is an average; a home adjacent to a facility's fencing or generators may not fully share in it.
• Resale pool. Future buyers may view proximity as a plus (jobs, tax base) or a minus (noise, cost) — sentiment can shift over time.
• Utility cost trajectory. Ask your provider whether local rate increases are tied to data center build-out.
• Distance to the facility and substation. Noise and visual impact drop off meaningfully with distance.
• Appraisal implications. As comparable sales near data centers accumulate, appraisers begin pricing that in — understanding assessed value vs. market value and appraised value vs. market value helps you interpret how.

None of these factors are disqualifying on their own. They're inputs, the same way you'd weigh a busy road or a planned commercial development nearby.

Frequently Asked Questions

Will living near a data center actually hurt my home's resale value?

Not necessarily. Recent national data leans the other way on average, with higher values and appreciation in counties with more data centers. But that's a county-level average, not a guarantee for any individual property, and local noise or utility costs can offset the broader trend for a specific home.

There's a large data center being built two miles from a house I like. Should that change my offer?

Two miles is generally far enough that noise and visual impact matter less than for an adjacent property. Focus more on what the project means for local utility rates, which you can research through your utility provider and county records.

Do data centers make noise you can hear from nearby homes?

Yes. This is one of the most common concerns Realtors report near individual sites, largely from constant cooling-system operation. Intensity depends on distance and facility design, so it's worth visiting the property at different times of day.

How much do electricity rates actually rise in areas with a lot of data centers?

NAR's 2026 report found residential rates rose 21.4% from 2020 to 2024 in counties with 10 or more data centers, versus 15.7% in counties with none. The pattern wasn't universal, so check with your local utility about specific trends.

Is it better to buy where data centers are established, or where they're just starting to be built?

There's no universal answer. Established areas have more historical data on how values and rates actually moved. Emerging areas carry more uncertainty but also more room for the economic upside NAR associates with job growth, if that trend holds.

I'm a first-time buyer on a tight budget. Could rising utility costs near a data center affect what I can qualify for?

Utility costs aren't part of the debt-to-income math lenders use to qualify you, but they do affect your real monthly budget after closing. If you're stretching to afford a home in an area with rising rates, run the numbers conservatively with a mortgage calculator that accounts for your full monthly costs.

How do I find out if a data center is planned near a property I'm considering?

Start with the county planning or zoning office, since large projects typically require public permit filings. Local news coverage, utility notices about infrastructure upgrades, and a direct question to the listing agent can surface projects that haven't broken ground yet.

Does a data center nearby help or hurt my property taxes?

It can go either way. A data center adds commercial value to a county's tax rolls, which can ease pressure on residential rates in some areas, but the report found no uniform national pattern. Checking recent local tax rate history is more reliable than assuming either outcome.

The bottom line

A data center nearby isn't automatically a red flag or a green light. NAR's 2026 report shows higher home values in counties with heavy data center concentration, alongside real downsides in utility costs and site-specific concerns like noise and water use.

The county-level statistic tells you less than the property in front of you: how far it sits from the nearest facility, what the utility projects for rates, and what your zoning research turns up.

Once you've done that homework, the next step is running your actual numbers. Getting pre-approved gives you a real monthly payment to weigh against everything you've learned about the property, rather than relying on a national average to decide for you.

Data cited in this article is from the National Association of Realtors' 2026 Data Center Impact Report. Local conditions vary; consult county records and your utility provider for information specific to a property you're considering.