Do Data Centers Affect Real Estate?

Data centers probably aren’t the first thing that comes to mind when buying or selling a home. However, as more of these large facilities are being built closer to residential areas, homeowners and buyers are starting to ask an important question: Can a nearby data center affect real estate values?

The answer depends on the location and the specific project.

What About Home Values?

So far, research comparing communities with large data centers to similar communities without them has found no statistically meaningful difference in home values.

Simply having a data center nearby doesn’t automatically increase or decrease a home’s value. However, proximity, noise, surrounding development and the size of the facility can influence how individual buyers feel about a property.

What Are the Potential Benefits?

Data centers can bring some positives to a community, including:

• Property tax revenue that may benefit local communities

• Infrastructure improvements, such as roads, fiber and power systems

• Jobs and economic activity

• Additional development in growing areas

What Should Homeowners Consider?

There can also be tradeoffs, especially for homes located close to a facility:

• Noise from cooling equipment, generators, trucks or construction

• Large buildings, substations or transmission lines that may change the surrounding views

• Increased electricity and, in some cases, water usage

• Questions about whether increased energy demand could contribute to future utility costs

The impact can vary significantly depending on the data center and how close a home is to it.

What Does This Mean if You’re Buying or Selling?

If you’re buying a home, look beyond what you see today. Find out whether a data center or other major development has been proposed or approved nearby. Consider the location, potential noise, infrastructure and future plans for the surrounding area.

If you’re selling a home near a data center, don’t automatically assume it will hurt your value. Understanding the project and being prepared for buyers’ questions can help you position your home appropriately.

What About Data Centers in Minnesota?

This topic is becoming increasingly relevant here in Minnesota. According to the U.S. Data Center Map as of August 2026, Minnesota currently has 73 tracked data center facilities and projects, including:

• 49 operational
• 5 under construction
• 11 planned
• 4 paused
• 4 inactive or historical

Reported or announced power for these facilities totals 1.4 gigawatts (GW), with 1.2 GW tied to projects that are planned or currently under construction.

That means there are 16 Minnesota data center projects currently planned or under construction, so this is a topic we’re likely to hear more about.

Wondering if there’s a data center near your home or in an area where you’re considering buying? You can search existing, planned, and proposed projects throughout Minnesota using the U.S. Data Center Map.

Bottom Line

Current research doesn’t show that having a data center nearby automatically hurts home values. However, every property and project is different, and factors such as proximity, noise, infrastructure and future development can matter.

If you have questions about how a data center or other nearby development could affect your home or your next move, reach out to the Sandy Erickson Real Estate Team. We can help you understand what it may mean for your specific situation.