Key Highlights

  • The share of US home sales within five miles of a large Data Center rose from 0.67% in 2018 to roughly 1.5% in 2026, as Facility count grew more than sevenfold to 347
  • New data centers increasingly sit in lower-density, lower-income communities farther from cities, reversing the pattern of the early 2020s AI buildout
  • Home values near newly activated data centers have tracked similar neighborhoods, though housing inventory retention has been notably higher
  • Average power draw per large facility rose from 24 megawatts in 2018 to 60 megawatts in 2026, raising new concerns about electricity and water use

Data Center Growth Is Reshaping Which Communities Sit Nearby

The share of US home sales within five miles of a large data center has more than doubled since 2018, rising from 0.67% to roughly 1.5% so far in 2026, a new Realtor.com report finds. Large facilities nationwide grew more than sevenfold, from 49 to 347, and that share is projected to reach 2.3% of all US home sales based on the construction pipeline through 2027.

The report found growth in proximity to data centers has been driven entirely by new facility construction rather than any shift in where homebuyers choose to live. Modeling what would have happened had construction stopped in 2018 showed the current share would otherwise sit closer to 0.6% today, with housing turnover near large data centers tracking broader metro areas throughout the period.

A Growing Physical Footprint, Farther From Cities

The industry's physical footprint has expanded with its power footprint. In 2015, just 12 US ZIP codes contained a large data center; by June 2026 that grew to 108, on pace to reach 125 by year's end. The land looks different too: the median 2026 opening is surrounded by roughly 70% fewer residential housing units per square mile than the median 2017 facility, and the typical 2027 opening will sit about 34 miles from its nearest major city center, 26% farther than the 2026 median of 27 miles.

Newest Facilities Landing in Lower-Income, More Remote Areas

The report identified a marked shift in where large data centers are being built. ZIP codes that received new facilities ran well above the national median income from 2020 through 2023, peaking 24.7% above the median in 2023 as Investment concentrated in affluent Northern Virginia suburbs. Facilities activated in 2026 sit in ZIP codes 2.1% below the national median income, with the 2027 pipeline pointing to communities 5.7% below the median.

Realtor.com's chief economist said the shift raises new questions, noting that home values studied so far have not moved meaningfully differently, though facilities coming online next are larger, more remote, and located in communities with less experience managing an industrial neighbor. An economist intern at Realtor.com added that these communities tend to have fewer resources, including fewer attorneys and less organized civic engagement.

Home Values Steady So Far, Property Taxes Diverge Slightly

An analysis of 43 ZIP codes that gained a large data center between 2019 and 2025 found home values and listing prices tracked closely with matched neighborhoods in the two years after activation, with no gains or losses large enough to represent a meaningful difference. Listing prices showed a small initial bump that faded within two years.

Housing inventory told a different story. Three years after a large data center opened, those ZIP codes retained 66% of their pre-opening active for-sale listings, compared with 43% for matched neighborhoods without one. New construction near data centers ran above the metro average around a facility's opening but slipped slightly below by the third year.

Property tax rates near large data centers were lower than in comparison communities both before and after a facility's arrival, a gap the report attributes to siting patterns rather than the facilities themselves. Effective residential tax rates near data centers ticked up modestly relative to their own pre-opening baseline over five years, while the comparison group's rates drifted down, though jurisdiction-level differences make the cause difficult to isolate.

Power and Water Demands Climb as Facilities Grow Larger

The average large data center drew about 24 megawatts in 2018, climbing to roughly 60 megawatts in 2026, meaning more generators, cooling infrastructure, and truck traffic per facility. Electricity and water use are emerging as visible pressure points, particularly in Sun Belt markets already navigating water scarcity, with rising Utility bills tied to data center Demand drawing public attention in states including Georgia and Virginia.

In March 2026, seven major AI companies signed a Ratepayer Protection Pledge to cover the cost of new power Supply and grid infrastructure rather than pass it on to residential customers. That commitment has since expanded to companies representing 80% of US power delivery, though it remains voluntary. The report points to these dynamics, along with the industry's shift into lower-density, lower-income, and more remote communities, as reasons the modest track record documented so far may be harder to sustain as the buildout continues.