Research says that nearby data centers won’t change your home’s sale price. But at least one seller has had to knock over $100,000 off of her house’s listing price because of a new data center — and she still hasn’t sold it yet.
64-year-old North Carolina resident Lori says her house has been stuck on the market for four months, with prospective buyers specifically naming the data center being built behind her house as the reason they’re not biting.
She’s even lowered the listing price from $925,000 to $799,000, but it hasn’t made a difference.
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“How low do I have to go to sell it? And when do you know it’s the right time to say, ‘Okay, I’ll take whatever you offer,’ and run?” She told Marketwatch. “You don’t ever know when that’s the time.”
But new research from Realtor.com indicated that data centers don’t impact nearby housing prices.
So what gives? Where could this disagreement between data and lived experience come from? And why are data centers such a big problem for people in the first place?
There are more residential data centers than ever. New types of neighborhoods might bring new buyer priorities
Data centers have been around for decades — possibly longer than you think. But data center construction has exploded in the past few years to provide new infrastructure for resource-hungry AI models.
Realtor.com’s data indicate that in 2015, only 12 zip codes contained a large data center. By 2026, 125 zip codes contained a large data center — a tenfold increase. In that same time, the percentage of homes sold near large data centers doubled.
In that time, data centers expanded to be more rural, moving away from urban centers. People who never expected to be in the same neighborhood as a data center suddenly found themself with a whole new type of neighbor — and probably an unwelcome one, according to a Gallup poll.
Realtor.com determined that data centers didn’t impact home sale prices by comparing similar neighborhoods (one with a data center, one without) at four points: the year before it opened, the year it opened, the year after it opened, and two years after it opened.
But if it’s by necessity only surveying data centers that have been open for two years, then its data might lean less rural than data centers are now.
People who prefer rural neighborhoods might have different priorities than people who live closer to a big city, including preferring nature sounds over electrical or mechanical ones. For them, a new data center might be more of a no-go.
In addition, Lori’s house is near a data center still actively being constructed. Construction is loud, noisy, and unattractive; the fact that the data center hasn’t been built yet might also be playing a factor.
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What could change if a data center is built near your home
If you do find yourself with a surprise data center in your neighborhood, there’s still no evidence that your house will fall in value in response. But there are some changes you might want to expect going forward.
The most direct impact might be to your energy bill. In Virginia, a state with a high concentration of data centers, electricity prices have gone up by almost 270% over the past five years.
You might also have to deal with noise pollution from the nearby data centers in the form of a “constant humming noise,” in addition to any construction noises that come from creating the data center.
Data center construction can also be bad for the local environment. One woman in Wisconsin found that her local creek turned cloudy after a nearby data center began construction; after testing it, it came back positive for heavy metals.
Data centers are also very water-hungry, using up to 5 million gallons of water per day. If your local area is prone to drought, that could put some strain on your local water reserves.
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Kit Pulliam is a DC-based financial journalist with over five years of experience writing, editing and fact-checking financial content.
