Data center development is boosting commercial property values and demand across much of the country, according to a new National Association of Realtors report, with industrial real estate emerging as one of the biggest beneficiaries even as the technology's impact on nearby housing markets remains mixed.
The study released Wednesday comes as communities across the country debate what data center development means for jobs, tax revenue, electricity bills and water use.
"There is no single data center effect," National Association of Realtors chief economist Lawrence Yun said in the 2026 Data Center Impact report. "Instead, the story varies significantly depending on the local market."
That variation can be seen in the numbers. Counties with at least 10 data centers had higher home values, higher household incomes and more people working than counties without data centers.
Commercial real estate benefits
The commercial real estate picture was notably more positive than the residential one. Among the 885 agents who reported a data center in their market, 50% said nearby commercial property values had increased, including 22% who reported gains of more than 10%.
Forty-two percent said demand for nearby commercial space had increased, compared with 7% who reported lower demand. Industrial properties saw the biggest benefit, with 58% of respondents reporting increased interest, followed by land at 38%.
The county-level data pointed in a similar direction. Real estate firms made up 6.4% of businesses in counties with at least 10 data centers, compared with 4.9% in counties without them.
The residential picture was far more mixed. Among agents in markets with a data center presence, 25% reported higher nearby home values and 22% reported lower values. Another 32% saw no change.
Views on housing demand skewed slightly negative. Twenty-six percent of respondents said demand for nearby homes had fallen, compared with 19% who reported increased demand.
Follow strong housing markets
The median home value reached $431,750 in counties with at least 10 data centers in 2024, compared with $174,500 in counties with none. Home values were $298,600 in counties with one or two data centers and $390,300 in counties with three to nine.
Those counties also saw larger home price gains over the past decade. Home values increased 95% between 2014 and 2024 in counties with at least 10 data centers, compared with 64% in counties without them. Counties with three to nine data centers posted the largest increase at 98%.
The report found no indication that counties with large concentrations of data centers had less homebuying activity. About 5.7% of homeowners in counties with at least 10 data centers had moved into their homes within the previous year, compared with 4.8% in counties without data centers.
Researchers cautioned against drawing a direct connection between data centers and home values.
"We do not see evidence of weaker housing markets in counties with a large data center presence," Yun said. "But these are county-level numbers, and they can't tell us what happens to an individual home next to a facility."
Facility hubs wealthier
Many of the nation's largest data center hubs already look different from the typical American county. They tend to be wealthier, have more people working and support a larger concentration of technology and professional-services firms, according to the report.
Median household income reached about $89,000 in counties with at least 10 data centers, compared with roughly $64,000 in counties without them. Employment rose 15.6% between 2014 and 2024, versus 1.9% in counties with no data centers.
More recently, employment in counties with one or two data centers slipped 0.4% from 2025 to 2026.
Professional, scientific and tech services made up 15.1% of businesses in those counties, compared with 9.8% in counties without data centers.
Questions about higher power rates
Electricity costs have emerged as one of the biggest concerns surrounding data center development. But the report found no clear relationship between the number of data centers in a market and what residents pay for power.
Residential electricity rates rose 21.4% between 2020 and 2024 in counties with at least 10 data centers, compared with 15.7% in counties without any. Yet counties with just one or two data centers recorded the largest increase, at 22.9%.
The findings also show that factors beyond data center development are shaping power costs.
"The number of data centers alone does not tell us what will happen to home values, jobs or electricity costs," Yun said. "It is important to also look at population and job growth, housing supply and the local economy."
Even counties with the largest data center footprints didn't have the highest electricity rates. The median residential rate stood at 13.94 cents per kilowatt-hour in 2024 in counties with at least 10 data centers, slightly below the 14.09-cent median in counties without any.
Virginia leads
Loudoun County, Virginia, remains the center of the data center industry. The county hosts 213 facilities, more than any other county in the country and about 14% of the national total.
Virginia leads all states with 319 data centers, accounting for roughly one-fifth of all mapped facilities nationwide. Texas ranks second with 127, followed by California with 112.
Northern Virginia's dominance traces back to the early days of the commercial internet. AOL and UUNet helped establish a dense fiber-optic network in the area during the 1990s, and the region's connectivity, access to power and proximity to major government and technology customers attracted more facilities over time.
This article was originally reported by Dani Romero for Homes.com News.