The expansion of data centers into rural areas is raising questions for nearby residents about property values and the costs of supporting energy-intensive facilities. Research cited in a new analysis by Jones & Swanson offers some reassurance on home prices, but does not settle concerns about electricity, water or noise.
A Realtor.com study examined 43 ZIP codes where large data centers opened between 2019 and 2025, comparing them with similar areas without a facility. It found no statistically significant difference in home-price appreciation during the first two years after a data center opened; homes in the studied ZIP codes generally gained value at a similar rate to comparable homes elsewhere.
The findings have limits. The study used ZIP-code averages rather than individual property data, excluded Texas and 11 other states where sale prices are not publicly disclosed, and followed prices for only two years. Longer-term effects are therefore uncertain. Realtor.com also found that the median large data center opening in 2026 was in an area with 32 residential housing units per square mile, compared with 116 in 2017, suggesting newer facilities are reaching less densely populated communities.
The locations of proposed facilities are also shifting. A Pew Research Center analysis from April 2026 found that 67% of planned U.S. data centers were in rural areas, compared with 13% of existing facilities. It also found that 39% of planned sites were in counties without an operating data center. The South and Midwest account for about three-quarters of planned facilities, with the South making up 48%.
Electricity is another potential household concern. Data centers use substantial power to run servers and cool equipment, and adding them to the grid may require new power plants, transmission lines and substations. A June 2026 estimate from Lawrence Berkeley National Laboratory put data centers’ potential share of U.S. electricity consumption in 2030 at 9.5% to 15.3%, with a central estimate of 11.8%. How the costs of grid upgrades are allocated remains an important question for local utilities and regulators.
Residents considering a proposed facility can also seek details about its water source and expected use, particularly during droughts, as well as noise limits, backup-generator testing, construction hours and landscaping or other protections for nearby homes. Such information may be available in zoning applications, planning meetings, utility filings and environmental permit reviews.
The analysis cautions that not every data center is dedicated to AI: facilities also support cloud storage, websites and streaming services. It also distinguishes proposed projects from those that have received the required approvals, noting that much of the planned expansion remains in the planning stages. The research so far does not show a consistent drop in nearby home values, but it does not resolve the potential community costs of new infrastructure.
Sources: Tom's Guide.