A new study of data-center development found slower home-price growth in affected communities. This adds to conflicting 2026 research on what large computing facilities mean for nearby housing.
The June working paper examined data-center announcements and construction across local markets and also found higher electricity consumption and prices after development. Other recent studies have reached different conclusions, ranging from higher county-level house prices to localized declines around hyperscale facilities. For real estate agents, those competing findings make local comparable sales, project scale, and property-level conditions more useful than applying one national estimate to a listing.
Why studies disagree on data centers and home values
A May National Bureau of Economic Research working paper found data-center growth increased house prices at the county level. It also found gains in employment and business activity alongside higher electricity prices.
Another nationwide housing study focused specifically on hyperscale facilities operated by large cloud and artificial intelligence companies. Researchers estimated that openings reduced nearby house prices by 6.8%, with the effect fading beyond about 14 kilometers. Larger non-hyperscale facilities showed little evidence of the same price effect.
A 2025 George Mason University analysis of Northern Virginia home sales likewise found no evidence that proximity reduced housing values. This, after accounting for property and location characteristics.
The studies cover different markets, facility types, and geographic areas, making their estimates difficult to apply to an individual home. Agents should avoid using any one national percentage as a pricing adjustment.
What agents should check near a data center
A comparative market analysis can focus on conditions buyers are likely to encounter at the property:
- Site conditions: Check distance, visibility, noise, lighting, generators, transmission infrastructure, and construction traffic.
- Project status: Confirm whether the site is proposed, approved, under construction, operating, or part of a larger planned campus.
- Comparable sales: Compare similar nearby homes with properties farther from the facility, including price changes and seller concessions.
- MLS activity: Review days on market, price reductions, and showing feedback for signs of different buyer behavior near the site.
The Close previously examined broader due diligence questions around proposed data centers, including zoning, disclosures, and utility planning.
Taxes and utility costs are separate questions
Local tax revenue from a data center does not automatically translate into lower property-tax bills for nearby homeowners. Virginia’s Joint Legislative Audit and Review Commission found that growing data-center demand is likely to increase power-system costs for other customers as new generation and transmission infrastructure is built. Its review also found that water use varies widely by facility and cooling system, while persistent noise has created problems at some sites near homes. Outside Virginia, agents should check local utility filings, water-capacity studies, zoning records, and large-load rate cases before drawing conclusions about those costs.
What the research means for pricing a home
Current research does not establish one uniform effect of data centers on home values. Results vary by location, facility type, distance, and the method researchers use to measure housing effects.
Agents can document project status, comparable sales, and observable property conditions while referring specialized appraisal, land-use, tax, or utility questions to the appropriate professional. Until the research becomes more consistent, the strongest evidence of a data center’s effect on a home is likely to come from the local market around it.