Key facts
- The share of U.S. home sales within five miles of a large data center has more than doubled since 2018, reaching about 1.5% in 2026.
- The number of large data centers in the U.S. has grown from 49 to 347.
- New data centers are being built in more remote areas, surrounded by fewer housing units than older facilities.
- Communities hosting new data centers are becoming less affluent.
- Home values in areas with new data centers largely tracked similar communities without them.
- Average data center power demand has increased from 24 megawatts in 2018 to approximately 60 megawatts in 2026.
The increasing prevalence of large data centers is leading to a greater share of U.S. home sales occurring in their proximity, according to a new Realtor.com analysis. The share of home sales within five miles of a data center 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 driven by the expansion and geographic shift of data center construction rather than a change in homebuyer preferences.
The number of large data centers nationwide has surged sevenfold, from 49 to 347. Realtor.com projects that by 2027, about 2.3% of U.S. home sales could be located within five miles of a large data center.
Data centers are increasingly being built in lower-density, more remote areas, farther from major cities. The median large data center opening in 2026 is surrounded by roughly 70% fewer residential housing units per square mile compared to facilities opened in 2017. Facilities in the 2027 pipeline are expected to be about 34 miles from the nearest major city center, compared to 27 miles for 2026 openings. Furthermore, host communities are becoming less affluent, with ZIP codes for 2026 openings having incomes 2.1% below the national median, and those in the 2027 pipeline expected to be 5.7% below.
Despite these shifts, an analysis comparing 43 ZIP codes that gained a large data center between 2019 and 2025 with similar communities found that home values largely tracked their matched counterparts, showing no statistically meaningful gains or losses in the two years after activation. Listing prices saw a modest initial increase that faded within two years. However, housing inventory showed a larger difference, with communities retaining 66% of their pre-opening active listings three years later, compared to 43% in matched ZIP codes.
Concerns are growing regarding the substantial increase in power and water intensity of large data centers. The average facility opening in 2018 required about 24 megawatts, compared to approximately 60 megawatts in 2026. This escalating demand for resources is particularly worrying in Sun Belt markets already facing constraints. Realtor.com cautions that while past data centers have not significantly impacted nearby home values, the larger, more remote, and lower-income communities targeted by newer facilities may present different challenges for housing markets and infrastructure.