Key facts
- Data centers are proliferating across U.S. housing markets due to demand for cloud computing and AI infrastructure.
- A NAR report found that data centers' impact on local real estate markets is not uniform.
- Counties with data centers generally exhibit higher home values and stronger long-term job growth, though correlation does not imply causation.
- Realtor survey results show mixed perceptions on data center impact on residential property values, with 25% reporting positive and 22% negative effects.
- Commercial real estate and industrial properties received more positive perceptions regarding data center proximity.
- Key client concerns related to data centers include energy costs (61%) and water use (56%).
- Residential electricity rates increased faster from 2020-2024 in counties with 10 or more data centers compared to those without.
- Counties with 10+ data centers have higher median household incomes ($89,000 vs $64,000) and higher rates of bachelor's degrees (41% vs 22%).
- Employment growth from 2014-2024 was substantially higher in counties with 10+ data centers (16%) compared to those without (2%).
Data centers are rapidly expanding across U.S. housing markets, driven by the increasing demand for cloud computing and artificial intelligence infrastructure. However, a new report from the National Association of Realtors (NAR) indicates that their effect on local real estate markets is complex and varies significantly.
The report, titled “2026 Data Center Impact,” analyzed over 3,200 counties and surveyed Realtor members. It found that while counties with data centers generally tend to have higher home values and stronger long-term job growth, the NAR emphasizes that these are correlations, not necessarily causation.
Researchers identified 1,474 data centers across 251 U.S. counties, with 92% of all counties having no such facilities. Notable areas include Loudoun County, Virginia (213 facilities), Santa Clara County, California (75), and Maricopa and Prince William Counties (63 each). The report highlights that the economic drivers for data center attraction differ greatly, ranging from established internet exchanges to low-cost hydropower and land availability.
Perceptions among surveyed Realtors regarding the impact on nearby residential property values were mixed: 25% reported a positive impact, 22% a negative impact, and about a third were unsure. Demand for nearby residential properties showed a slightly more negative trend, with 19% reporting increased demand and 26% a decrease.
In contrast, the commercial real estate sector showed stronger positive perceptions, with half of respondents reporting a positive impact on nearby commercial property values, and 22% noting increases of over 10%. Industrial properties and land experienced the most demand near data centers, cited by 58% and 38% of respondents, respectively.
Key concerns among clients related to data centers were energy costs (61%) and water use (56%), followed by environmental contamination and landscape impact. The report noted that residential electricity rates increased faster from 2020 to 2024 in counties with 10 or more data centers (21.4%) compared to those without (15.7%).
Economically, counties with 10 or more data centers showed higher median household incomes (approximately $89,000 versus $64,000) and a greater proportion of adults holding bachelor's degrees (41% versus 22%). Employment growth between 2014 and 2024 was also significantly higher in these high-concentration counties (16%) compared to those without data centers (2%).
Discussion