Data Centers Are Moving Into Rural and Lower-Income Communities

The footprint of the data center industry has undergone a radical geographic transformation. In 2015, only 12 U.S. ZIP codes hosted large-scale facilities; that number is projected to reach 125 by the end of 2026. Unlike the early 2020s, when hyperscale investment favored affluent suburbs like those in Northern Virginia, the current wave of construction is landing in regions where household incomes fall below the national median. By 2027, the pipeline suggests new facilities will be situated in communities 5.7% below the median income level.

Despite these shifts, housing market impacts remain muted. Realtor.com analyzed 43 ZIP codes that gained facilities between 2019 and 2025, finding that home values in these areas performed similarly to comparable neighborhoods. While listing prices saw a transient bump during the initial activation of a facility, those gains faded within two years. Danielle Hale, chief economist at Realtor.com, suggests that while historical data offers some reassurance, the increasing scale and remoteness of upcoming projects may present new challenges for local communities that lack the resources to manage such massive industrial neighbors.

As power requirements for individual facilities climb—from an average of 24 megawatts in 2018 to 60 megawatts today—concerns regarding utility strain and water usage are intensifying. Although major AI companies have introduced voluntary pledges to cover grid infrastructure costs, the industry’s push into rural areas with limited civic infrastructure leaves many questions about long-term sustainability and the future of regional property markets.