When evaluating a home, buyers usually think about the neighborhood, commute, schools, nearby amenities, views, traffic, and future development. Increasingly, there may be another piece of infrastructure worth understanding: the data center.
Data centers—the large facilities filled with servers that support cloud computing, artificial intelligence, streaming, online services, and countless digital transactions—are expanding into more communities across the country. That growth is raising new questions for homeowners and buyers about property values, noise, utilities, infrastructure, and what it may be like to live near one.
For Orange County buyers and sellers, the larger lesson extends beyond whether a data center is currently located near a particular property. Major infrastructure and commercial development can shape the character and operating costs of a neighborhood, making local due diligence increasingly important when evaluating a home in Irvine, Tustin, Newport Beach, or anywhere else in Southern California.
Why Are Data Centers Becoming a Real Estate Conversation?
The number of large data centers in the United States has expanded rapidly. According to Realtor.com Economic Research, only 12 ZIP codes contained a large data center in 2015. By June 2026, that figure had climbed to 108 ZIP codes, with the full-year total projected to rise further.
Realtor.com’s analysis defines a large data center as a facility with at least 50 megawatts of power capacity. The research also found that approximately 1.5% of U.S. home sales during the first half of 2026 occurred within five miles of one of these facilities, more than double the 0.67% share recorded in 2018.
That increase does not mean home buyers are intentionally moving closer to data centers. Rather, data centers themselves are expanding into new locations. As more facilities are built, more homeowners may find that a proposed or operating data center has become part of their broader neighborhood landscape.
Do Data Centers Lower Nearby Home Values?
This is likely the first question many homeowners ask, and the research so far does not support a simple yes-or-no assumption.
Realtor.com compared 43 ZIP codes where large data centers opened between 2019 and 2025 with similar communities that did not receive one. The researchers matched markets using factors associated with home-price growth, including prior price levels and population density.
The result: sale prices in communities with new large data centers generally moved in line with comparable communities without them. The analysis found no statistically meaningful difference in home-price performance during the first two years after activation.
That is useful context, but it should not be interpreted as proof that proximity never matters. The study examined aggregate ZIP-code trends rather than the reaction of every individual home. A residence immediately adjacent to a large industrial facility could face different considerations from one several miles away.
The research also covers only the first two years after a facility opens. Effects involving persistent noise, utility costs, changing infrastructure, additional development, or neighborhood perception may take longer to emerge.
Why the Individual Property Still Matters
Real estate remains intensely local. Two homes within the same ZIP code may experience a nearby development very differently depending on their precise location, orientation, views, traffic patterns, topography, and distance from the project.
A home directly overlooking industrial infrastructure may present a different buyer experience from a property buffered by commercial development, open space, major roads, or several miles of separation.
This is particularly relevant in Orange County, where micro-location can meaningfully affect buyer perception. A home’s position within a neighborhood, street noise, views, nearby land uses, and future construction can influence marketability even when broader ZIP-code statistics appear stable.
Potential Benefits of Data Center Development
Like other major commercial projects, data centers can bring economic and infrastructure benefits to the communities where they are built.
1. New Investment + Economic Activity
Large data centers can represent significant private investment. Construction activity, ongoing operations, suppliers, and related businesses can contribute to a region’s economy.
The facilities may also generate commercial property-tax revenue for local governments, although how those revenues are used varies by jurisdiction and should not be assumed to translate directly into lower residential property taxes.
2. Infrastructure Improvements
Major developments may require upgrades to roads, electrical systems, fiber networks, and other infrastructure. Depending on the project and local agreements, some of those improvements may have broader community benefits.
At the same time, new infrastructure can itself affect surrounding properties. Transmission lines, substations, utility corridors, road improvements, and construction activity should all be considered as part of the complete development picture.
3. Employment + Related Development
Data centers can create construction and permanent jobs and may contribute to additional commercial development. However, employment effects vary considerably by project, and a large physical facility does not necessarily employ the same number of workers as another commercial use occupying comparable land.
What Are the Potential Tradeoffs of Living Near a Data Center?
For buyers, the physical and operational characteristics of the facility may matter more than the label “data center” itself. Several issues deserve closer attention.
Noise
Data centers operate continuously. Cooling equipment, backup generators, mechanical systems, construction, deliveries, and truck traffic can create sound that varies based on facility design and distance.
A buyer evaluating a property near an existing facility may want to visit at different times of day rather than relying on a single showing. Sound conditions during a quiet weekend afternoon may differ from those during weekday operations or generator testing.
Visual Impact
Large data centers can resemble industrial buildings or warehouses and may be accompanied by electrical substations, transmission infrastructure, security features, and other equipment.
For homeowners who place a premium on open views or a residential streetscape, understanding both the existing facility and any approved future phases can be important.
Traffic + Construction
The construction phase of a major data center can involve heavy equipment, deliveries, road work, and substantial site activity. Operational traffic may be more limited afterward, but buyers should investigate the expected construction timeline and access routes for any proposed project.
Electricity Demand
Data centers are significant electricity consumers. Whether that additional demand affects household utility costs depends on the local utility system, regulatory structure, infrastructure investments, and how project-related costs are allocated.
There is no universal rule that a nearby data center will cause a homeowner’s electric bill to rise. But energy demand has become an important policy issue in regions experiencing rapid data-center growth.
Water Use
Some data centers rely on water-intensive cooling systems, while newer facilities may employ designs intended to reduce water consumption. The effect depends heavily on the technology being used and local water conditions.
In water-conscious regions such as Southern California, understanding the resource requirements of a major proposed development may be relevant to broader community planning even when it does not directly affect an individual property’s water bill.
Could Data Centers Affect Residential Utility Bills?
Potentially—but the relationship is more complicated than simply living near a facility.
Large data centers can require substantial new electricity generation and transmission capacity. If utilities must build new infrastructure to accommodate that demand, regulators and utilities must determine how those costs are allocated.
Some jurisdictions have taken steps designed to prevent residential ratepayers from subsidizing the infrastructure required by large data-center users. Other areas are still debating how those expenses should be distributed.
For a home buyer, the practical takeaway is to look at actual utility costs and local policy rather than assuming that proximity alone determines the outcome.
What Should Buyers Check Before Purchasing Near a Data Center?
Buyers evaluating a home near a major commercial or infrastructure project should look beyond what is physically visible today.
Start by determining whether a data center is operating, under construction, approved, or merely proposed. Those are very different stages. Review local planning and zoning information to understand the property’s surrounding land uses and whether additional phases or facilities have been contemplated.
Consider the distance between the residence and the facility, but also pay attention to what lies between them. Roads, terrain, landscaping, commercial buildings, and other buffers can influence noise and visibility.
It may also be useful to investigate:
- Planned construction phases and timelines
- Generator-testing schedules and potential operational noise
- Truck and employee access routes
- Electrical substations and transmission infrastructure
- Approved future development on surrounding parcels
- Historical utility bills for the property
- Recent comparable home sales in the immediate neighborhood
For homes in communities such as Lake Forest, Irvine, or Tustin, this type of review is part of the same broader due diligence buyers should conduct for any significant nearby land use.
What Should Homeowners Know if a Data Center Is Proposed Nearby?
If a data center is proposed near your home, avoid assuming either that your property value will decline or that new commercial development will automatically increase it. The evidence available so far does not support either conclusion across the board.
Instead, focus on the specific proposal. How large is the facility? How close is it? Where will equipment be located? Are noise limits part of the approval process? What infrastructure will be added? How will traffic enter and exit the site? Are additional phases anticipated?
Planning documents, environmental reviews, public hearings, and local government materials may provide more useful information than generalized headlines about data centers nationally.
What Should Sellers Do if There Is a Data Center Nearby?
A nearby data center does not automatically make a home difficult to sell. But prospective buyers may have questions, particularly if the facility is visible, under construction, or frequently discussed in the community.
Sellers and their real estate professionals should understand the relevant facts before the property reaches the market. Being able to distinguish an operating facility from a proposed expansion, for example, is more useful than responding to buyer concerns with assumptions.
Pricing should also rely on the most relevant comparable sales available. If similar nearby homes have recently sold, those transactions provide better insight into buyer behavior than national studies alone.
Data Centers + Housing: What the Research Says at a Glance
| Issue | What Current Research Suggests | What Homeowners Should Consider |
|---|---|---|
| Home Values | No statistically meaningful price difference in the communities studied during the first two years after opening | Property-specific proximity, views, noise, and comparable sales |
| Noise | Varies by facility design, equipment, generators, and distance | Visit the area at different times and review project plans |
| Utilities | Large facilities create substantial electricity demand, but residential cost impacts vary | Review local utility policies and actual household bills |
| Infrastructure | Projects may bring roads, fiber, power infrastructure, and tax revenue | Consider both community benefits and physical infrastructure near the home |
| Visual Impact | Large buildings and electrical infrastructure can change surrounding land uses | Check views, buffers, zoning, and future development plans |
| Long-Term Effects | Still uncertain because much of the current expansion is relatively recent | Avoid treating short-term national findings as guarantees for one property |
Why Local Real Estate Knowledge Matters More Than a National Headline
Data centers offer a useful reminder that real estate value is rarely determined by one factor. Buyers respond to the entire living experience: the home itself, neighborhood character, traffic, views, schools, amenities, infrastructure, future development, and cost of ownership.
National research can provide context, but it cannot tell you how buyers will respond to a particular property in Orange County. A home near major development in Irvine may perform differently from a coastal residence in Newport Coast or an established neighborhood in Costa Mesa.
For buyers, the objective is to understand what exists today and what could change tomorrow. For homeowners and sellers, it is to understand how nearby development is actually influencing buyer perception and comparable sales—not to assume the outcome before the market provides evidence.
The Bottom Line
Data centers are becoming more common, and that means more homeowners will eventually encounter them as part of a real estate decision. Current research does not show that simply having a large data center nearby automatically raises or lowers home values.
But proximity, noise, utility infrastructure, water and electricity demand, surrounding development, and future expansion can all matter at the property level. If a large project is operating or proposed near a home you own or are considering purchasing, investigate the specifics and evaluate them alongside current neighborhood market data.
Sources: KeepingCurrentMatters.com, Realtor.com
