New York has temporarily paused certain state permit applications for new and expanded large data centers while regulators study their effects on electricity, water, air quality, noise, and surrounding communities. Gov. Kathy Hochul’s July 14 executive order applies to qualifying applications pending before the state Department of Environmental Conservation that were not considered complete before the order took effect.
Covered facilities must be capable of consuming at least 50 megawatts. The order does not apply to local approvals, and certain manufacturing, research, education, and medical facilities are exempt.
New York’s order applies only within the state, but similar questions are emerging nationwide as data centers expand into suburban, exurban, and rural markets. Agents advising nearby buyers, sellers, or landowners should verify a project’s status, distance from the property, and planned infrastructure before discussing possible market effects.
Data center growth becomes a national real estate issue
Across eight primary North American markets, supply increased 36% in 2025 and net absorption rose 38%, according to CBRE’s latest market report. Vacancy fell to a record 1.4%, while power and permitting constraints pushed more development toward markets such as Nevada, Pennsylvania, and Michigan.
The regulatory environment is also changing quickly. More than 100 communities had enacted moratoriums, and more than 300 state data center bills were filed during the first six weeks of 2026.
For residential agents, the issue extends beyond the construction site. Proposed facilities can affect zoning, surrounding land use, utility planning, and buyer perceptions of noise, lighting, traffic, and future industrial development.
What the housing research shows
Research has not established one nationwide effect on home prices. A University of Chicago working paper associated county-level data center growth with increases in employment, economic activity, house prices, and electricity prices.
Brookings found employment and wage gains in counties receiving their first large facility but no statistically significant home-price increase. Employment results varied by facility type and the size of the local data center cluster.
Neither study can determine the value of a specific listing. Buyer reactions may differ when a property is close enough to experience construction traffic, equipment noise, security lighting, or new transmission infrastructure. Agents should use comparable sales with similar proximity and property characteristics instead of applying countywide findings to an individual address.
Disclosure and utility-cost questions
Disclosure requirements differ by state and by the facts surrounding a property. Agents should confirm the applicable standard with their broker or legal counsel rather than independently deciding whether a nearby proposal or operating facility must appear on a seller disclosure.
Agents can document the project’s approval status, distance from the property, and observable conditions. Listing and disclosure statements should follow local law and brokerage policy.
As of May 2026, the New York Independent System Operator’s interconnection queue included nearly 12 gigawatts of data center load requests, with more than 8 gigawatts added during 2025.
Data center growth does not affect utility rates uniformly. Available generation, infrastructure costs, regulation, and cost-allocation rules all shape the result.
Agents can review public utility commission filings and, when available, request recent utility bills to help buyers estimate operating costs. Refer technical questions about noise, air quality, water, or electromagnetic exposure to qualified specialists or public agencies.
How to advise buyers and sellers
Explain what has been verified locally: the project’s status, distance from the property, planned infrastructure, and observable effects. Avoid predicting appreciation or depreciation without relevant sales evidence.
Buyers can visit the property at different times, review planning records, and examine available utility history. Sellers should use comparable sales with a similar proximity profile and confirm disclosure obligations with their broker or legal counsel.
What agents should check before a consult
Before the consultation, check zoning and planning records, adjacent parcels, utility commission dockets, MLS remarks, seller disclosures, and proximity-specific comparable sales. Confirm whether the facility is proposed, approved, under construction, or operating before discussing pricing or resale. The strongest advice will come from verified local facts, not broad assumptions about how data centers affect property values.