In today’s data-driven economy, communities are increasingly grappling with questions about data centers, from proposed developments to their impact on local housing, infrastructure, and quality of life.
While data centers are not new, their role in everyday life has grown dramatically. The first U.S. data center was built in 1945 at the University of Pennsylvania for military research. Since then, advances in computing, the rise of the internet, and the proliferation of smartphones have made data centers essential infrastructure supporting everything from online banking to artificial intelligence.
Although the National Association of REALTORS® (NAR) has not adopted an official policy on data centers, its recently released 2026 Data Center Impact Report examines their effects on housing markets, commercial real estate, and local economies. One finding that stood out to me was how concentrated these facilities are: just 1% of U.S. counties have ten or more data centers, while 92% have none.
The Report arrives at a particularly relevant time for the Greater Chattanooga region. In July, the Hamilton County Commission enacted a six-month moratorium on new data center proposals in unincorporated areas, while nearby Bradley County continues discussions surrounding the proposed Project River development, which includes a data center and on-site power generation facility.
Analyzing more than 3,200 U.S. counties, the Report explores the relationship between data centers, housing values, employment growth, and electricity costs. NAR also surveyed Realtors® in data center markets to understand how buyers, sellers, and investors perceive their impact.
Key takeaways from the Report include:
Data Centers are highly concentrated. The U.S. has 1,474 data centers across 251 counties, with Loudoun County, VA leading at 213 facilities. Markets attract data centers for different reasons, including fiber connectivity, power availability, low-cost energy, available land, customer proximity, and state incentives.
Who Lives in Data Center Markets? Counties with more data centers tend to have higher incomes. Median household income is about $89,000 in counties with 10+ facilities versus $64,000 in counties with none. These counties also skew younger and more educated, with 41% of adults holding a bachelor’s degree or higher compared to 22% in counties without data centers.
Housing Markets. Home values generally rise with data center concentration, from a median of $174,500 in counties without data centers to $431,750 in counties with 10+ facilities. From 2014 to 2024, home values increased 95% in high-concentration counties versus 64% in counties without data centers. The research shows correlation, not causation. Higher incomes, younger populations, and greater educational attainment also contribute to housing demand.
Employment. Counties with 10+ data centers experienced stronger long-term job growth, with employment increasing 16% from 2014 to 2024 compared to 2% in counties without data centers. They also have a greater concentration of technology and professional services businesses, including higher shares of professional, scientific, technical, and information-sector jobs. More recently, employment growth has moderated, reaching about 0.6% from 2024 to 2026, while other county groups were flat or slightly negative.
Electricity Costs. Residential electricity rates generally increased faster in counties with data centers, but the relationship is not linear. From 2020 to 2024, rates rose 21.4% in high-concentration counties compared to 15.7% where no data centers were present. Counties with the most data centers did not have the highest residential rates. In 2024, median residential rates were 13.94¢/kWh in high-concentration counties versus 14.09¢/kWh in counties without data centers. Industrial electricity costs show a similarly mixed pattern, suggesting local factors play a significant role in rate changes.
The Local Market Matters. Data center markets vary significantly. Loudoun County, VA, is driven by technology infrastructure; Santa Clara County, CA, by Silicon Valley; Grant County, WA, by low-cost hydropower; and Licking County, OH, by rapid expansion. Real estate impacts are not uniform. Housing, employment, population growth, infrastructure, and local market conditions all influence outcomes.
So if you’re curious about data centers, download the full Report, complimentary for REALTORS®. And I encourage everyone you to tune in on September 15 at 2 pm Eastern for NAR’s Research Summit: Data Center and Real Estate. You’ll hear from Dr. Lawrence Yun, Dr. Terry Clower, Nadia Evangelou, and Matt Christopherson as they explore the economic and housing impacts of data-center growth, where development is happening, how data centers are affecting property values and local communities, and what Realtors are seeing in their markets.
With access to local and national data, REALTORS® embody expertise, preparation, and partnership to help clients and their communities navigate the future. REALTORS® are #RightByYou every step of the way. #ThatsWhoWeR