When you're buying a home in Denver, there are probably dozens of things you're already thinking about.

The neighborhood.

Your commute.

Schools.

Parks and trails.

Shopping and restaurants.

Property taxes.

Homeowners insurance.

Maybe even how quickly you can get to the mountains.

But here's a question that probably hasn't been on many home buyers' checklists:

Is there a data center nearby—or could one be built nearby in the future?

As artificial intelligence, cloud computing, streaming, online services, and our overall demand for digital infrastructure continue to grow, data centers are being built in more communities across the United States.

And some of these facilities are moving closer to residential areas.

According to research cited by Realtor.com, only about a dozen U.S. ZIP codes had a large data center in 2015. By the first half of 2026, that number had increased to more than 100 ZIP codes.

That raises an obvious question for homeowners:

Could living near a data center affect my home's value?

The answer is more complicated than simply yes or no.

Quick Answer: Current research does not show that simply having a large data center nearby automatically causes home values to rise or fall. However, the potential impact on an individual property can depend on factors such as distance from the facility, noise, visibility, traffic, construction, power infrastructure, water and electricity demands, and future development plans. If you're buying or selling a home near a data center, evaluate the specific facility and property rather than assuming every data center affects real estate the same way.

What Is a Data Center?

Let's start with the basics.

A data center is a facility containing computer servers and other equipment used to store, process, and distribute digital information.

Think about how much of modern life relies on computing infrastructure:

• Artificial intelligence
• Cloud computing
• Streaming
• Online banking
• Social media
• Business software
• E-commerce
• Online gaming
• Digital photos and videos
• Websites and apps

All of that information has to be processed and stored somewhere.

That's where data centers come in.

And as demand for computing continues to increase, companies need more physical infrastructure to support it.

For real estate buyers and homeowners, that means data centers may increasingly become another type of nearby land use worth understanding before purchasing a home.

Why Are More Data Centers Being Built Near Residential Communities?

Data centers aren't necessarily being dropped into the middle of traditional residential neighborhoods.

But as development expands and data-center construction increases, residential and large-scale infrastructure uses can end up closer together.

A data center project can require substantial amounts of land and infrastructure.

Depending on the facility, that may involve:

• Large buildings
• Electrical infrastructure
• Transmission equipment
• Backup generators
• Cooling systems
• Water infrastructure
• Roads
• Construction activity
• Security infrastructure
• Other supporting facilities

That's why a buyer shouldn't evaluate only the building itself.

Look at the entire development and what may eventually surround it.

Do Data Centers Lower Property Values?

This is probably the biggest real estate question.

And based on the research cited in the original report, the answer so far isn't:

“Data center = lower home value.”

Researchers compared housing markets with large data centers against similar areas without them.

Home values generally followed similar patterns.

In other words, the presence of a large data center wasn't shown to automatically cause nearby home prices to suddenly rise or fall.

That's an important distinction.

But it also doesn't mean:

“Data centers never affect individual homes.”

Real estate is much more property-specific than that.

Can Living Next to a Data Center Affect Your Home's Value?

Potentially—and this is where I'd separate broad market statistics from an individual property.

Imagine two homes in the same community.

One is several miles from a data center and has no direct view of it.

The other backs directly toward the facility, its supporting infrastructure, or a major access road.

Would every potential buyer view those properties identically?

Probably not.

When evaluating a specific home, I'd want to understand factors such as:

• Distance from the data center
• Visibility from the property
• Facility size
• Noise
• Traffic
• Construction activity
• Lighting
• Power infrastructure
• Future expansion
• Surrounding zoning
• Other planned development

That's why I wouldn't tell a Denver buyer:

“There's a data center nearby, so don't buy the house.”

And I wouldn't tell them:

“The research says prices aren't affected, so don't worry about it.”

Neither answer provides enough information.

Investigate the actual property.

What Are the Potential Downsides of Living Near a Data Center?

Different facilities and locations can create different concerns, but there are several issues a home buyer may want to investigate.

1. Noise From a Data Center

This is probably one of the first things I'd want to experience personally if a house were very close to a facility.

Data centers can contain equipment associated with cooling and power generation.

Depending on the facility and property location, potential noise sources could include:

• Cooling equipment
• Mechanical systems
• Backup generators
• Construction
• Trucks and service vehicles
• Other infrastructure

How noticeable is it from this house?

That's the question that matters.

If you're seriously considering a nearby property, don't rely exclusively on a map.

Visit the area.

If practical, experience it at different times of day.

Stand in the backyard.

Stop talking.

Listen.

I've said this about home showings for years: sometimes one of the most useful things you can do before leaving a property is simply stop and listen to what's around you.

2. The Size and Appearance of Data Center Facilities

Data centers can be large buildings.

Depending on the development, additional electrical or mechanical infrastructure may also influence how the surrounding area looks and feels.

Again, proximity matters.

There's a significant difference between knowing a facility exists somewhere in the broader area and having it directly within your home's sightline.

For some buyers, that may not matter at all.

For others, it could.

And buyer perception matters in real estate because eventually today's buyer becomes tomorrow's seller.

When purchasing a home, I don't want to think only about whether you are comfortable with the location.

I also want to consider:

How might future buyers perceive it?

3. Construction and Traffic

A planned data center can mean more than a finished building.

Large developments can involve significant construction before they're operational.

Depending on the project, buyers may want to investigate:

• Construction timelines
• Truck routes
• Road improvements
• Planned entrances
• Future phases
• Expansion possibilities

A completed facility and a multi-year construction project can provide very different experiences for nearby residents.

If you're buying near proposed development, understanding what's planned can be just as important as understanding what exists today.

4. Electricity Demand

Data centers can require substantial amounts of electricity.

That has created broader questions about power generation, grid capacity, infrastructure investment, and utility costs in communities where data-center development is expanding.

However, I would be careful about making the leap from:

“Data centers use a lot of electricity”

to:

“Your electric bill will increase because there's a data center nearby.”

Utility pricing is considerably more complicated than that.

Data centers are only one factor that may affect infrastructure needs and electricity costs, and the potential impact can vary by utility, jurisdiction, regulations, rate structures, and development agreements.

For a home buyer, the better question is:

What is actually known about this specific project and local utility system?

5. Water Use

Some data-center cooling systems can also use significant amounts of water.

In a state like Colorado, water naturally gets people's attention.

But once again, don't assume every data center uses the same cooling technology or has the same water requirements.

If a proposed project is generating local concern around water use, look for information specific to that facility and jurisdiction.

This is an area where verified project documents and local government information are far more useful than social-media speculation.

6. Future Expansion and Development

This might be the most overlooked question.

Don't investigate only:

“What's being built?”

Ask:

“What could be built next?”

One data center may be part of a larger planned development.

Additional land may be entitled for future facilities.

Roads or electrical infrastructure may be constructed to support additional growth.

That's why zoning, planning documents, public development applications, and future land-use plans can become useful due-diligence tools.

When you're buying a house, you're not only buying the structure.

You're buying its location—and that location can change.

Are There Benefits to Having a Data Center Nearby?

Potentially.

Large infrastructure projects aren't automatically negative for a community.

Depending on the development and location, possible benefits could include:

Infrastructure Investment

A major project may contribute to improvements involving roads, utilities, electrical infrastructure, or telecommunications.

Economic Activity

Construction and ongoing operations can contribute economic activity to the surrounding area.

Employment

Data centers can create construction and operational jobs, although the number and type of permanent jobs can vary significantly by facility.

Additional Development

A major investment may be part of broader economic development in an area.

But just as I wouldn't automatically label a data center as bad for real estate, I wouldn't assume these benefits automatically translate into:

“Home prices are going up.”

Housing values are influenced by many factors.

Do Data Centers Increase Home Values?

There's no good reason to assume a nearby data center will automatically increase your property's value either.

Home values are affected by a combination of:

• Supply and demand
• Location
• Neighborhood desirability
• Schools
• Employment
• Interest rates
• Housing inventory
• Property condition
• Transportation
• Amenities
• Future development
• Buyer preferences
• Broader economic conditions

A data center becomes one additional piece of the location puzzle.

That's a much more useful way to think about it.

Should You Buy a House Near a Data Center?

I wouldn't make the decision based on the phrase “near a data center.”

I'd investigate the details.

Start with these questions:

Is the data center already operating?

An existing facility gives you an opportunity to experience current conditions.

How close is the house?

Don't measure proximity only in miles. Consider direct visibility, roads, topography, and what sits between the house and facility.

Can you hear it?

Visit the property and surrounding neighborhood.

Is the facility still under construction?

Understand the expected timeline and future phases when that information is available.

Are additional facilities planned?

One existing building may not represent the full development plan.

What infrastructure is planned?

Look for roads, power lines, substations, transmission infrastructure, or other supporting improvements when relevant.

What is the surrounding land zoned for?

This question can be useful even if there's no data center nearby.

What do official planning documents say?

Whenever possible, rely on municipal or county planning information rather than rumors.

How Do You Find Out if a Data Center Is Planned Near a House?

This is where real-estate due diligence is evolving.

If a nearby data-center project could materially affect your buying decision, some places worth researching may include:

• City or county planning departments
• Zoning maps
• Development applications
• Planning commission materials
• City council or county commissioner materials
• Public meeting documents
• Utility information
• Developer project information
• Local news reporting

Depending on the jurisdiction, some of this information may be easier to find than others.

And plans can change.

The goal isn't to predict everything that will ever happen around a house.

It's to make a reasonably informed decision using the information available before you buy.

Data Centers and Denver Real Estate:

Why Colorado Buyers Should Pay Attention

For someone buying a home in Denver or moving to Colorado, I think the broader lesson here is bigger than data centers.

Denver's metro area continues to evolve.

New development can include:

• Housing
• Commercial projects
• Transportation
• Warehouses
• Industrial development
• Utilities
• Roads
• Mixed-use projects
• Data centers
• Other infrastructure

And two houses that look nearly identical online can have very different long-term location considerations.

That's why I don't want my buyers looking only at:

Bedrooms. Bathrooms. Square footage. Kitchen. Backyard.

I also want to understand:

What's around the house today—and what could be around it tomorrow?

Buying New Construction?

Future Development Matters Even More

This can become particularly relevant when buying in a rapidly developing area.

You may tour a brand-new community and see:

Open land.

Beautiful!

But what is that land going to become?

Another neighborhood?

Retail?

Apartments?

A school?

A road?

Commercial development?

Industrial use?

A data center?

Open space?

Never assume vacant land will remain vacant.

If the view, traffic, noise, or surrounding development is important to your decision, investigate what you reasonably can before purchasing.

What Should Denver Home Sellers Do if a Data Center Is Nearby?

If you're selling a home near a data center, don't automatically assume your property is worth less.

The research cited earlier doesn't support a blanket conclusion that data centers automatically reduce surrounding home values.

Instead, evaluate how the specific facility relates to your property.

Potential buyers may ask:

• How far away is it?
• Can you see it?
• Can you hear it?
• Is construction complete?
• Are more facilities planned?
• Has traffic changed?
• Is additional infrastructure planned?

Having accurate information can help you respond to questions without speculation.

And when pricing the home, I'd want to look at what the actual market is telling us through comparable sales, competing listings, days on market, buyer feedback, and neighborhood demand.

Will a Data Center Make It Harder to Sell My House?

Not automatically.

This is another question where I'd resist a universal answer.

If buyers don't see, hear, or experience any meaningful impact from a facility, it may have little influence on their decision.

If a house directly overlooks a large facility or buyers consistently raise concerns about noise, traffic, views, or future development, that's different.

Ultimately, the market tells us how buyers perceive a location.

That's why property-specific comparable sales and buyer feedback are much more useful than a generic statement that all homes near data centers perform the same way.

Data Centers Are Another Reason Location Matters in Real Estate

You've probably heard the real estate phrase:

Location. Location. Location.

But location isn't static.

Neighborhoods evolve.

Roads get built.

Commercial areas expand.

Open land gets developed.

Transit changes.

Employment centers move.

And new forms of infrastructure emerge.

Data centers are simply becoming another item buyers may need to consider when evaluating what's around a property.

That doesn't make them inherently good or bad.

It makes them something worth understanding.

Frequently Asked Questions About Data Centers and Home Values

Do data centers lower property values?

Current research cited in this article does not show that simply having a large data center nearby automatically lowers home values. The effect on an individual property may depend on proximity, visibility, noise, traffic, construction, infrastructure, and future development.

Do data centers increase property values?

Not automatically. Although major development can contribute economic activity and infrastructure investment, home prices are influenced by many factors. A nearby data center alone doesn't guarantee higher property values.

Is it bad to live near a data center?

Not necessarily. The experience can vary significantly depending on the facility, distance, noise, visibility, traffic, supporting infrastructure, and surrounding land uses. Buyers should investigate the specific property and project.

Are data centers noisy?

Data centers can have mechanical equipment, cooling systems, generators, and other potential noise sources. How noticeable those are from a particular home depends on the facility design, distance, barriers, topography, and other factors.

Do data centers use a lot of electricity?

Large data centers can require significant electricity. Whether that affects local residential utility rates is a more complicated question involving the utility, infrastructure, regulations, rate structures, and other factors.

Do data centers use a lot of water?

Some data-center cooling systems can use significant amounts of water, while designs and cooling technologies vary. Buyers concerned about a particular project should research the facility itself rather than assuming all data centers have identical water requirements.

Should I buy a house next to a data center?

A nearby data center isn't automatically a reason to buy or avoid a house. Investigate proximity, noise, views, traffic, construction, planned expansion, infrastructure, zoning, and how comfortable you are with the location.

How can I find out if a data center is being built near my house?

Check local city or county planning information, zoning records, development applications, public meeting materials, utility information, developer announcements, and reputable local reporting.

Can a planned data center affect selling my home?

It could influence individual buyer perceptions, particularly if the project changes views, noise, traffic, construction, or surrounding land use. However, you shouldn't assume a proposed data center automatically lowers your home's value.

What should I research before buying a house near future development?

Investigate zoning, approved and proposed development, roads, transportation projects, nearby commercial or industrial uses, utilities, and vacant land. The goal is to understand both the neighborhood that exists today and reasonably foreseeable changes.

The Bottom Line:

Don't Panic About Data Centers—Investigate Them

I think that's the most important takeaway.

Data centers are becoming another piece of the real estate puzzle.

Their presence doesn't automatically mean a neighborhood is getting better.

It doesn't automatically mean it's getting worse.

And it doesn't automatically mean your home's value is going up or down.

What matters is the specific property and specific development.

How close is it?

Can you see or hear it?

What's being built?

What infrastructure comes with it?

Are there additional phases?

What does the surrounding zoning allow?

Those are much better questions.

Because when you're buying real estate, you're buying more than four walls and a roof.

You're buying a location.

And understanding what could happen around that location is part of making an informed decision.

About Adam Lang | Living in Denver

I'm Adam Lang, a Denver-area Realtor®, Colorado native, Certified Real Estate Negotiation Expert, and creator of the Living in Denver YouTube channel.

After more than 43 years living in Colorado, I've watched communities across the Denver metro grow and change considerably.

Today, I help buyers, sellers, and people relocating to Colorado understand more than simply what house to buy. I want my clients thinking about the neighborhood, commute, surrounding development, property condition, future resale considerations, and what everyday life in that location may actually look like.

Through Living in Denver, I publish weekly educational content about Denver real estate, Denver neighborhoods and suburbs, moving to Denver, buying a home in Colorado, selling Denver real estate, homeownership, and the issues that can affect property owners along Colorado's Front Range.

Buying or Selling Near a Data Center or Major Development?

Let's Look at the Bigger Picture.

If you're considering buying a home in the Denver metro area and there's a data center—or any major development—nearby, I'd be happy to help you research the bigger picture.

Likewise, if you're thinking about selling a Denver-area home and you're wondering whether nearby development could affect its marketability or value, that's something we can look at together.

I offer a free 30-minute Denver Real Estate Strategy Session where we can discuss the property, neighborhood, comparable sales, surrounding development, your timeline, and the questions worth investigating before making your next move.

Because whether you're buying or selling, the goal isn't to make decisions based on headlines.

It's to understand what the development could actually mean for your specific property.