Despite increasing American concerns about AI data centers, President Donald Trump claims such centers benefit nearby residents, including boosting home equity. In a recent Fox News interview, Trump stated, “Any community that turns down AI is making a big mistake, because your taxes are going to go way down; if you own a house, it’s going to be more valuable.” He added that data centers improve local areas.
A July poll by Emerson College found that 63% of U.S. voters oppose AI data centers in or near their community, up by 21 points since December 2025. Data centers are new, and studies on their impact on communities and the housing market are still developing. However, recent analyses suggest they could transform real estate markets nationwide.
Newsweek reached out to the White House for comment on Wednesday morning.
The Case for Data Centers Boosting Home Prices
A study from George Mason University’s Center for Regional Analysis examined data from 2023, focusing on Virginia, where over 650 data centers exist. The study revealed a negative relationship between a home’s distance from a data center and its price; closer homes saw higher prices. This pattern applied to all housing types, indicating a demand for strong infrastructure and job availability that data centers provide.
The study supports Trump’s claims, but its limited scope means it does not fully represent data centers’ effects nationwide. Terry L. Clower, the report’s co-author, emphasized that data centers thrive in well-developed areas, which also attract homebuyers.
The Case for Data Centers Lowering Home Prices
Though data centers can drive demand and increase land value, local concerns about noise, water usage, and energy consumption affect desirability and prices. Realtor Jerry Allen noted that homeowners near a proposed data center in Granbury, Texas, struggled to sell properties, reflecting a local home price drop of 8.2% to $380,000.
A different study on Loudoun County, Virginia, noted houses within 0.5 miles of a planned data center sold for about 2.8% less than those slightly farther away.
Evaluating the Impact
Further data is needed to determine data centers’ true effect on home prices. Some research indicates they may support regional economic activity, jobs, and tax revenue, improving housing demand and values. However, nearby homes may experience reduced demand due to noise and industrial concerns.
The future remains uncertain. According to Pew Research Center, over 1,500 new data centers are developing nationwide. The Berkeley Research Group estimates about 3,000 projects are underway.
Will AI investments benefit Americans and fulfill promises of prosperity? Or will public opposition continue to grow as development increases? Recent surveys by the Pew Research Center showed mixed public opinions on data centers’ effects on various aspects, including jobs, tax revenue, and environmental concerns.
The Ipsos Consumer Tracker found a majority would oppose a local data center, with 49% of Republicans, 62% of Democrats, and 52% of Independents disapproving.
The National Association of Home Builders (NAHB) highlighted another issue: data centers offering high prices for land, outcompeting homebuilders and limiting new home projects. With an existing housing shortage of 1.5 million to 10 million affordable homes, this competition might worsen supply issues and increase prices.