Science & Tech · Science & Environment · 2 hrs ago
Data centers may raise local power bills and weaken housing markets
Data centers store information and run servers that support online platforms and artificial intelligence, and governments compete to attract them.
Two studies point to costs for nearby communities, including weaker housing markets and higher household electricity bills.
In US areas where a data center is built, home-price growth is 1.3 percentage points lower than in other areas one year after the project is announced, and the gap reaches 3.1 points after three years.
Local household electricity costs rose 3.1% in counties where a data center was built, while electricity use rose 1.9%.
The facilities may bring some technical-service jobs, but the employment benefit is limited, with no effect found in retail.
The costs may outweigh some expected local gains, even as governments offer incentives in hopes of creating jobs and supporting regional growth.
The government is preparing rules for the sector as protests over water use, noise and pressure on local surroundings spread globally.
Data centers may raise household electricity costs and weaken nearby housing markets, according to studies discussed in a La Vanguardia report.
A study of US counties found that household electricity supply costs were 3.1% higher where a data center was built.
Home price growth was 1.3 percentage points lower one year after a project was announced, widening to 3.1 points after three years.
A separate study found that local employment benefits may be limited once construction ends.
Local governments often seek to attract data centers with incentives, hoping to create jobs, increase tax revenue and support regional development.
- Who
- Local residents and communities near data centers may face higher power costs and weaker housing markets.
- What
- Studies report possible negative effects on household electricity costs, housing prices and local employment.
- When
- The housing study examined US data from 2015 to 2023; the report was published on November 14, 2026.
- Where
- The findings concern data centers and communities in the United States.
- Why
- Data centers use substantial electricity and can affect local economic conditions; local governments seek to attract them for strategic and economic benefits.
This story does not have two clearly opposing sides.
Researchers examined 1,584 data centers in the United States for a study of local employment.
Researchers used US data to study housing markets near data centers.
The MIT Center for Real Estate published the study Serving the servers: do data centers create local employment?
A World Resources Institute analysis said data centers could consume one-fifth of US electricity demand.
- Housing price growth after one year
- 1.3 percentage points lower than in areas without data centers
- Housing price growth after three years
- 3.1 percentage points lower than in areas without data centers
- Household electricity supply costs
- 3.1% higher in counties where a data center is built
- Electricity consumption in those counties
- 1.9% higher
- Employment study sample
- 1,584 US data centers, 2000–2023
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