As demand for artificial intelligence and digital infrastructure continues to grow, data centers are rapidly expanding across the country. According to the Pew Research Center, more than 1,500 new centers are in development nationwide.
For nearby housing markets, the impact is mixed. Research from George Mason University has shown that in some markets, homes located near data centers have sold for higher prices. However, homeowners living near proposed or newly built sites may have concerns about noise, visual impact, energy use and environmental strain.
In Dallas–Fort Worth, currently ranked the second-largest data center market in the U.S., the boom is bringing investment, new jobs, infrastructure upgrades and long-term economic development opportunities.
According to Todd Luong, an agent with REMAX DFW Associates, buyers and sellers in the Dallas–Fort Worth area are already weighing both the opportunities and tradeoffs tied to this growth.
"Sellers in these growth corridors often benefit from increased demand, as buyers anticipate future growth tied to employment and infrastructure investment," Luong says. "Homes in these areas can also move more quickly, especially among investors or buyers who want to be close to major employment centers."
Luong also notes that buyer sentiment can shift depending on how close a home is to a proposed or operating facility.
"Some buyers may be hesitant if they're concerned about perceived noise or traffic," he says. "As with most things in real estate, how close a home is and how established the data center development is can make a significant difference."
Real estate professionals in other fast-growing markets, including metro Atlanta, are seeing similar conversations.
"Data centers are increasingly becoming a part of the real estate landscape, and their impact on residential housing is mixed," says Kristen Jones, Broker/Owner of REMAX Around Atlanta.
"On the positive side, they bring infrastructure investment, long-term tax revenue and job growth that can benefit local markets. On the other hand, when placed near established neighborhoods, they can raise concerns around land and resource use, aesthetics, noise and long-term compatibility with residential living."
Jones says one overlooked issue is how data centers could affect future housing supply.
"One of the less-discussed impacts of data centers is how they affect land availability," Jones says. "In some markets, large data center projects compete directly with land that could otherwise support residential development, which can put additional pressure on an already challenged housing supply."
As data center development accelerates nationwide, real estate professionals say careful planning is needed to balance economic growth with community needs.
"The key is thoughtful zoning and planning so that the growth doesn't come at the expense of livability," Jones adds.
Written by Amy Wilczynski
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