Data Centers Near Homes Double Home Sales Share

The proliferation of data centers adjacent to residential areas in the United States is significantly altering neighborhoods and impacting the real estate market, with the share of home sales near these facilities doubling to 1.5% of all transactions, according to new Realtor.com® research. This trend is underscored by a sevenfold increase in large data centers exceeding 50 megawatts since 2018, bringing the total number of such facilities in U.S. communities to over 350. By the end of 2026, it is projected that nearly 2% of all home sales will occur in proximity to a major data center, not due to increased sales activity in these areas, but rather because of the sheer expansion of data center presence across a wider array of U.S. communities. These facilities are increasingly being established in rural locations and lower-income regions, though their precise effect on property values remains a subject of ongoing analysis. The growing presence of data centers has become a contentious issue in 2026, prompting numerous cities and states to halt data center developments or suspend associated incentives. This pause is a direct response to mounting public concern regarding the substantial power consumption, noise pollution, and broader environmental impact associated with these operations. Consequently, legal disputes are escalating, with concerned residents initiating lawsuits against data center projects. The Data Center Coalition, representing a significant portion of major data center developers and users, has responded to these controversies. In a statement provided to Realtor.com, Nicole Riley, director of Virginia Government Affairs for the coalition, asserted that companies operate in compliance with all authorized regulations and local ordinances. Riley further highlighted the industry's substantial economic contributions, stating that data centers have generated 5.5 million jobs, contributed $204 billion in taxes, and supported $1.7 trillion in gross domestic product. She emphasized the industry's commitment to responsible operation within the communities they serve, noting that "the data center industry takes compliance and accountability seriously and works closely with the many local, state, regional, and federal bodies responsible for permitting and project approvals, environmental regulation, and oversight." Realtor.com's analysis, which incorporated housing data from Aterio, also examined the specific communities targeted for new data center installations, observing a trend of these facilities moving into more rural settings. The overall national impact on housing markets and community infrastructure is a subject of continued investigation as the data center industry continues its rapid expansion.