The rapid expansion of data centers across the United States, driven by the growing demand for cloud computing and artificial intelligence infrastructure, is having a profound impact on local real estate markets. However, the effects are far from uniform, with significant variations depending on the specific location and economic context.
A comprehensive report by the National Association of Realtors (NAR) sheds light on these complexities, revealing that while data centers can boost home values and job growth, their influence is highly localized and influenced by a myriad of factors.
Geographic Distribution and Economic Impact
The NAR report identified 1,474 data centers across 251 U.S. counties, with a striking 92% of counties having no mapped facilities. This uneven distribution highlights the concentrated nature of data center development. Loudoun County, Virginia for instance, leads the nation with 213 facilities, followed by Santa Clara County, California with 75. Other notable counties include Maricopa County, Arizona and Prince William County, Virginia each hosting 63 facilities.
The economic impact of these data centers varies dramatically. Loudoun County’s data center industry, for example, grew from an internet exchange established in the 1990s, while Grant County, Washington attracted facilities through low-cost hydropower from the Columbia River. In Licking County, Ohio rapid expansion has been driven by land availability near Columbus.
Residential Market Perceptions
The report’s survey of Realtor members revealed mixed perceptions of data center impact on nearby residential property values. While 25% reported a positive impact, 22% noted a negative effect. Roughly one-third of respondents were unsure, and the remainder cited no changes. Perceptions of demand for nearby residential properties were slightly more negative, with 19% reporting increased demand and 26% citing a decrease.
Nadia Evangelou, principal economist and director of real estate research for NAR, emphasized the importance of local conditions. “Real estate agents should look at the local market and provide clients with credible information about the specific development,” she advised. “Even half a mile away can make a difference.”
Commercial Real Estate Benefits
The commercial sector showed stronger positive perceptions, with half of respondents reporting a positive impact on nearby commercial property values. Industrial properties experienced the most demand near data centers, followed by land. The report found that real estate firms make up roughly 6.4% of all businesses in counties with the highest concentration of data centers, compared with 4.9% in counties without data centers.
Utility Concerns
Top concerns among clients related to nearby data centers included energy costs (61%), water use (56%), environmental contamination (43%), and impact on the immediate landscape (32%). The report’s data analysis found that residential electricity rates increased faster from 2020 to 2024 in counties with 10 or more data centers (21.4%) than in counties without data centers (15.7%). However, the increase did not consistently rise with the number of facilities.
Employment and Education Patterns
Counties with 10 or more data centers have median household incomes of about $89,000, compared with $64,000 in counties without data centers. Adults in those counties are also more likely to hold bachelor’s degrees—41% compared with 22%. Employment from 2014 to 2024 grew about 16% in counties with 10 or more data centers, compared with 2% growth in counties without data centers. More recent growth has slowed, with the high-concentration group seeing median employment growth of about 0.6% from 2024 to 2026.
Evangelou advised agents in mature data center markets to approach their work differently than those in rapidly expanding ones. “For agents, that means understanding the specific development, the local housing market, and what buyers and sellers are actually concerned about,” she said. “National data or county-level data gives us context, but real estate is very local, and specifically for this issue, even more granular.”
As data center development continues to evolve, ongoing research and local knowledge will be crucial in understanding their full impact on real estate markets.
