Data centers are popping up in cities and farmlands across the country. With more than 4,100 data centers in the United States, they appear like giant windowless buildings that require a lot of power to run the artificial intelligence (AI) that powers well-known brands like Claude, ChatGPT and Copilot. Data centers have made headlines for rising electricity and water bills — with Amazon’s data centers using more than two billion gallons a year — but they may be doing more than that for (or for) your home.
A study from George Mason University’s Center for Regional Analysis found that homes may actually be worth more if they’re located near a data center. The report finds that home prices in the Virginia region, colloquially known as “data center alley,” are worth more than similar homes located farther away from data centers. This goes for all types of homes, including single-family units, townhomes, and condominiums. According to the study, the farther a home was from a data center, the lower its sale price tended to be. However, there may be more to it than just proximity to a data center.
Data suggests that this phenomenon is linked to different aspects, including access to transport, the labor market and infrastructure. Homes are built near the power grid, utilities and where the internet already exists, and the same goes for AI data centers. This desirability also correlates with rising home prices in the area, not just proximity to an AI data center.
Higher values don’t always mean homes are more desirable
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AI data centers are not particularly well received by the general public, and a recent survey shows this. Results from Emerson College show that 63% of American voters do not want AI data centers built near their city or neighborhood. This represents a 21% increase from when the same question was published in December 2025. Even higher housing prices near a data center aren’t enough to sway people on this topic, at least not overall.
Having a nearby data center could have one impact on an owner: increased traffic. Workers traveling to and from their jobs in these data centers can cause more congestion problems for local drivers. In addition to making traffic more difficult, this situation also increases noise, a common problem in a community data center. It’s another factor that has current homeowners worried that data centers will make their neighborhoods potentially less attractive to potential buyers.
Data suggests that as more jobs are created through increased AI data centers, the region’s economy is boosted. This can also have an impact on the real estate market, thereby driving up housing prices. However, homes and residents near an AI data center may also face increased water and electricity bills, industrialization, decreased green space, and visual impacts, due to how distracting and imposing data center buildings can be. This is a compromise whose real impact on real estate prices will not be known for years.
What impact could this have on the future of the real estate market?
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Having a house near an AI data center can be beneficial for the seller, but only if they can find someone to buy it. Homeowners who live near an AI data center may think, “If I ever want to sell my house, would it be harder to do so?” Homes located near data centers and construction sites may take longer to sell, some real estate agents say. Buyers interested in purchasing a home can also ask more questions when touring a home.
Data centers require space and land, just like homes and neighborhoods. They both compete for space to build new sites, but data centers could outbid the contractors who oversee construction of the homes. For example, in Virginia, two separate land deals were purchased by Amazon and SDC Capital Partners. Either area could have been a new district, but companies bought them up within days for the express purpose of building new data centers.
Homeowners who live near a data center struggle to see the giants devour resources and buy up neighboring homes to gain even more land. As data centers continue to expand and new sites are built, the land needed to build new homes is decreasing. Those who already live near a data center or potential site may see a theoretical increase in the value of their home, but they also may not have trouble selling their home.
