A Data Center Nearby? What REALTORS® Should Know

When a data center is proposed near a neighborhood, buyers and sellers may have questions. Will it affect home values? What about electricity costs, water use or noise?

Those questions have a local connection. In Prosper, a proposed $580 million data center project was withdrawn before a council vote.

New research from the National Association of REALTORS® offers context for these conversations. Its main finding: There is no single, predictable effect of data centers on real estate. Local conditions and the specifics of each development matter.

What the Research Says About Home Values

NAR found no evidence of weaker housing markets in counties with a large data center presence. Those counties generally had higher home values and stronger long-term appreciation.

But that does not establish that data centers caused those gains. Many major data center markets already have higher incomes, strong employment sectors and other factors that support housing demand.

The distinction matters when talking with clients: County-level findings cannot predict what will happen to an individual home beside a facility. The research does not support a blanket claim that a nearby data center will raise or lower a property’s value.

Why Clients Are Concerned

Utility demands are a leading concern. As Realtor.com reports, 61% of surveyed NAR members reported client concerns about energy costs, and 56% reported concerns about water use. Members also cited worries about environmental impacts and changes to the surrounding landscape.

Those percentages reflect concerns reported by agents, not confirmed effects of a particular development.

Electricity costs are also more complicated than the number of facilities nearby. NAR’s research found no consistent relationship in which more data centers meant larger rate increases. Because the analysis used state-level electricity rates, it cannot establish how an individual project affects a household’s bill.

The Commercial Perspective

NAR’s survey painted a more positive picture for commercial properties. Among surveyed agents with data centers in their markets, 50% reported increased nearby commercial property values, while 42% reported greater demand for commercial space. Industrial properties and land saw particular interest.

These are agents’ market observations, rather than a forecast for every development, but they show why residential and commercial conversations may look different.

What to Check Before Advising a Client

When a nearby project comes up, start with the client’s specific questions and work through the available information:

• Confirm the status. Is the facility proposed, approved, under construction or operating? Check the latest municipal records.
• Review the site plan. Look at its distance from the property, building placement, setbacks and screening.
• Look into operations. Review available information about noise, cooling systems, water use and backup generators.
• Check infrastructure and expansion plans. Identify proposed utility improvements and whether additional buildings or phases are planned.
• Use relevant local market data. Review comparable sales and buyer activity before drawing conclusions about pricing or demand.

A client asking about a nearby data center deserves an answer grounded in that location. MetroTex members can help by connecting clients with reliable project information, putting national findings in context and being clear about what remains unknown.