By Mike Lentz | The Mike Lentz Team - Keller Williams Realty
Research shows that data centers near homes haven’t caused dramatic shifts in property values historically. Communities with large data centers have tracked similarly to matched communities without them. Still, buyers and homeowners in South Jersey should understand both the potential benefits, like infrastructure improvements and economic growth, and the tradeoffs, like noise and resource usage that can come with these facilities.
As data centers near homes become increasingly common across the country, buyers and homeowners in Camden, Burlington, Gloucester, Salem, and Cumberland counties are starting to wonder what having one nearby could mean for their property values, utility costs, and daily life. Understanding what the data actually says helps you make informed decisions, because there’s more nuance here than whether these facilities are simply “good” or “bad.”
Data centers probably weren’t on your list of things to think about when buying or selling a home.
School districts? Sure. How close you are to family? Absolutely. A large building full of computer servers down the road? Probably not.
But that may be changing as these facilities become more common nationwide. Everything from home values to utility bills comes up. So let’s get into what the data actually says.
Data Centers Near Homes Are Showing Up in More Communities
According to Realtor.com, back in 2015, only about a dozen ZIP codes had a large data center. But by the first half of 2026, that number had climbed to more than 100, and it’s projected to rise even further by the end of the year (see graph below):
That’s a dramatic increase in just over a decade. HousingWire shows a lot of that growth is in Texas, Virginia, Georgia, Pennsylvania, Ohio, Utah, Illinois, Arizona, Indiana, and Nevada.
And that ramp up explains why this is becoming a real estate conversation. More buyers are going to encounter a data center during their search. More homeowners are going to hear about one being proposed nearby.
And both groups are going to want to know what that could mean for them.
What About Home Values?
One of the first concerns homeowners and buyers may have is: could a nearby data center hurt home values? So far, there’s no evidence that says it automatically will.
Researchers compared communities that have large data centers to similar communities without them. A recent HousingWire article reports:
“. . . home values in data center ZIP codes generally tracked their matched communities, with no statistically meaningful gains or losses. Listing prices showed a modest initial increase around openings . . .”
That’s important context. Historically, simply having a data center nearby hasn’t been enough to send home values dramatically higher or lower.
That doesn’t mean every property will react the same way. Proximity, the surrounding development, and the specific facility can all matter. But for the typical homeowner or buyer, the data so far doesn’t point to an automatic impact on home values.
One thing worth being straight about for our own market: most South Jersey data center activity so far is at the ban and proposal stage, with Vineland’s DataOne project as the notable exception now under construction. That means we don’t yet have a local track record of “here’s what happened to prices when this specific facility opened in this specific ZIP code.” The national research is the strongest evidence we have to date, and if you’re evaluating a home purchase or sale near a proposed or approved site in any of our five counties, that gap is worth knowing about.
Data Centers Near Homes Come with Tradeoffs
Like any major development coming to town, data centers can bring benefits along with things buyers and homeowners will want to consider.
On the Plus Side
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They may be part of a bigger growth story. A data center can usher in broader development in an area. Substantial property tax revenue can be used to improve the community.
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Infrastructure may get an upgrade. New roads, fiber, power infrastructure, and other improvements can come along with major development.
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They can generate economic activity. A data center can generate jobs. Those jobs fuel local housing demand and support local businesses.
On the Flip Side
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They’re not exactly invisible. Large facilities, transmission lines, substations, and construction can change the look and feel of an area.
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Noise can matter. Cooling equipment, generators, construction, and truck traffic may be noticeable. How close you are makes a difference.
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They use more resources. These facilities can require significant electricity. Depending on the cooling system, water usage increases. That can raise questions about local infrastructure and whether growing electricity demand could affect what residents pay.
On that last point, J.P. Blackwood, Public Affairs Liaison and Media Spokesperson for the Ohio Consumers’ Counsel (OCC), explained his take on what consumers need to know about data centers and their potential to impact utility costs to HousingWire:
“Utility rate increases tend to be gradual, and so that’s what I would expect here. Again, a number of factors can drive electricity prices higher and are driving them higher, and this is one of them. There are steps being taken around the country to mitigate the effects of data centers.”
Basically, they’re just one factor that can have an impact. And the key word there is “can” because it depends on where you live and what rules are in place in your area.
Where South Jersey Actually Stands on Data Centers
This isn’t a “somewhere else” story for us. Data center activity, and the pushback against it, is already reshaping decisions in all five counties we work in.
Where projects are moving forward. Vineland has an AI data center called DataOne under construction, operated by Nebius under a multi-year agreement to supply computing capacity to Microsoft. The full project is planned at roughly 2.6 million square feet with 300 megawatts of on-site power, using Bloom Energy fuel cells so it generates its own electricity rather than pulling from the grid. The Vineland Planning Board approved Phase 2 on August 18, 2026.
Where towns have said no. A growing list of South Jersey municipalities has banned large-scale data centers outright. Cherry Hill’s township council passed a unanimous ban on July 28, 2026, with Mayor David Fleisher saying he didn’t think Cherry Hill should be “a guinea pig.” Millville banned data centers on May 19, 2026, killing a proposed 2.6 million square foot, 1.4 gigawatt facility that would have been the largest of its kind in New Jersey. Medford, Mansfield Township, and Chesterfield Township in Burlington County have all passed bans in recent months. Pemberton, Waterford, Winslow, Delanco, Edgewater Park, and Burlington itself are on the same list.
Where litigation has followed. Monroe Township in Gloucester County banned data centers this spring, and Princeton-based Hexa Builders sued for $300 million in federal court in Camden in June 2026. Hexa had planned a roughly one-million-square-foot data center there. The complaint runs 20 counts and includes a First Amendment claim that data centers are “a medium of expression.” The case is pending, and the outcome is going to shape how much control a South Jersey town actually has when it wants to keep one of these projects out.
Where the state has stepped in. Governor Sherrill signed Assembly Bill A796 into law on July 8, 2026. The bill was sponsored by Assemblyman Dave Bailey Jr., who represents Gloucester, Salem, and Cumberland counties. It requires data centers with peak demand at or above 50 megawatts to post financial guarantees covering at least 85 percent of their electric service costs for at least 10 years, and to prepay for transmission infrastructure upgrades. The point is straightforward: data centers pay for the energy and infrastructure they need, not the ratepayers next door.
The practical takeaway: the “what if one gets proposed near me” question isn’t hypothetical here. Local ordinances, active federal litigation, and a new state law are all going to shape what shows up in your zip code over the next couple of years.
What Should Buyers and Homeowners Do?
If you’re buying, find out what’s already there. And find out what’s approved or proposed nearby. Consider the facility’s proximity, potential noise, future development, and whether utility costs are something you want to factor into your budget.
If you’re selling, don’t assume a nearby data center automatically hurts your home’s value. But buyers may have questions. Knowing the facts about the facility, construction timeline, noise, and future plans can help you address those concerns upfront.
Bottom Line
As more data centers pop up, they’re becoming another piece of the puzzle buyers and homeowners need to understand.
Have data centers near homes in your area or one coming soon? If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
