Data Center Growth Doubles Homes Near Facilities

The proportion of U.S. home sales occurring within a five-mile radius of large data centers, defined as those with at least 50 megawatts of capacity, has more than doubled since 2018, rising from 0.67% to approximately 1.5% in 2026. This trend is primarily attributed to the strategic placement of new data center facilities rather than a shift in homebuyer preferences, according to a new analysis by Realtor.com. Concurrently, the total number of large data centers across the United States has seen a significant increase, growing more than sevenfold from 49 in 2018 to 347 by 2026. Projections based on data centers currently in the construction pipeline through 2027 suggest that this figure could rise further, with an estimated 2.3% of U.S. home sales potentially taking place within five miles of a large data center.

Danielle Hale, chief economist at Realtor.com, noted the rapid expansion of data center construction and its implications for policy, community planning, and the housing market. She offered some initial reassurance, stating that in the communities studied, the proximity of a new data center did not correlate with a significant increase or decrease in home values compared to similar neighborhoods without such facilities. However, Hale cautioned that upcoming data centers are larger, situated in more remote areas, and are being established in communities with less experience managing industrial neighbors. This evolving landscape suggests that past performance may not be a reliable indicator for future housing market impacts.

HousingWire is also investigating the broader effects of data centers on the housing ecosystem, gathering insights from local real estate agents and homebuilders. The geographic distribution of data centers is undergoing a notable transformation. In 2015, large data centers were concentrated in only 12 U.S. ZIP codes. By June 2026, this number had expanded to 108, with projections indicating a further increase to 125 by the end of the year, according to the Realtor.com report. A significant shift is occurring as new facilities are increasingly being built in less densely populated regions, located farther from major urban centers. The median large data center that opened in 2026 is surrounded by approximately 70% fewer residential housing units per square mile compared to facilities that commenced operations in 2017. This decentralization trend means that new data centers are entering communities with lower housing density, potentially altering the local housing market dynamics in ways not previously observed.