Data Centers Near Homes in Sioux Falls, SD: What Buyers and Homeowners Should Know

Author Amy Stockberger | Founder, Amy Stockberger Real Estate | Creator, Lifetime Home Support™ Academy | Ranked the #1 Real Estate Team in South Dakota since 2017 and #33 in the Nation by Real Trends

 

Data centers probably are not the first thing you consider when buying or selling a home in Sioux Falls, SD. School districts, commute times, property taxes, and neighborhood amenities usually come first.

But as more data centers are proposed and developed across the country, buyers and homeowners are asking important questions. Could a nearby facility affect home values? Will it create noise or additional traffic? Could it influence utility costs or future development?

The answers are not simply positive or negative. Here is what the available housing data shows—and what people in Sioux Falls, SD should consider when evaluating a proposed development near their property.

Why Data Center Development Matters in Sioux Falls, SD

According to Realtor.com research, only about a dozen ZIP codes contained a large data center in 2015. By the first half of 2026, that number had grown to more than 100, with additional growth projected.

Much of the expansion has occurred in states such as Texas, Virginia, Georgia, Pennsylvania, Ohio, Utah, Illinois, Arizona, Indiana, and Nevada, according to HousingWire.

As this development spreads, more homeowners may hear about new facilities being proposed near residential areas. Even if a project is not directly beside a property, it may influence surrounding infrastructure, land use, construction activity, and future commercial development.

For buyers and sellers in Sioux Falls, SD, this means major proposed developments should become part of the real estate research process.

 

Do Data Centers Affect Nearby Home Values?

One of the biggest questions homeowners ask is whether a nearby data center could reduce their property value.

Current research does not show that the presence of a data center automatically causes home values to rise or fall. Researchers have compared ZIP codes containing large data centers with similar communities without them. According to HousingWire’s analysis, home values in data-center ZIP codes generally followed patterns similar to comparable communities.

That does not mean every home will respond the same way.

The potential impact on a specific property may depend on:

• Distance from the facility: A home directly beside a large facility may be affected differently than one several miles away.

• Visibility: Large buildings, transmission lines, substations, or cooling systems may change the surrounding view.

• Noise levels: Cooling equipment, backup generators, construction, and truck traffic may be noticeable at certain distances.

• Infrastructure changes: Road improvements, electrical upgrades, and fiber installation may affect accessibility and future growth.

• Surrounding development: A facility may attract additional commercial investment or change how nearby land is used.

A buyer should evaluate the specific facility and location instead of assuming every data center will have the same effect.

Potential Benefits of Living Near a Data Center

Data centers can be part of a larger economic-development strategy. Depending on the project and community, potential benefits may include:

• Additional property-tax revenue: Large developments may generate revenue that can support public services and community improvements.

• Infrastructure investment: Roads, fiber networks, electrical systems, and other infrastructure may receive upgrades.

• Economic activity: Construction, operations, maintenance, and supporting businesses may create jobs and local spending.

• Future development: A major technology investment may encourage other companies to expand into the area.

These benefits depend on the development agreement, local regulations, tax structure, and long-term plans for the surrounding area.

Potential Concerns Buyers and Homeowners Should Consider

Major developments also come with tradeoffs. Before purchasing a home near a proposed or existing facility, consider the following factors.

Noise

Cooling equipment, generators, truck traffic, and construction may create ongoing or temporary noise. Buyers should visit the area at different times of day instead of relying on a single showing.

Appearance and Land Use

Large facilities, substations, security fencing, and transmission infrastructure can change an area’s appearance. Review current zoning and future land-use plans to understand what may be developed nearby.

Construction Activity

Building a data center may require extended construction, road work, heavy equipment, and increased traffic. Ask about the anticipated construction timeline and planned access routes.

Electricity and Water Use

Data centers can require substantial electricity and, depending on the cooling system, water. Their effect on residents will vary based on utility regulations, infrastructure capacity, and agreements requiring developers to cover expansion costs.

HousingWire’s reporting on utility costs notes that data centers can be one of several factors influencing electricity prices. However, the actual impact depends on local policies and how infrastructure costs are allocated.

What Buyers in Sioux Falls, SD Should Do

If you are buying a home in Sioux Falls, SD, investigate both existing conditions and future plans around the property.

Before making an offer:

• Review nearby zoning and future land-use maps.

• Search for approved or proposed commercial projects.

• Ask whether major construction has been announced nearby.

• Visit the neighborhood during different times of the day.

• Listen for equipment, road, or construction noise.

• Consider how nearby development could affect the view and traffic.

• Ask about utility providers and historical utility costs.

• Request relevant disclosures and supporting property documents.

A home’s surroundings may change after closing. Understanding what has already been approved can help you make a more confident decision.

What Sellers Should Do

If you are selling a home near a proposed or operating data center, do not assume the development automatically lowers your property’s value.

Instead, prepare for buyer questions. Gather reliable information about:

• The facility’s location and distance from the property

• Construction and completion timelines

• Planned roads or infrastructure improvements

• Operating hours and anticipated noise

• Zoning and surrounding land-use plans

• Community or economic-development benefits

Clear, factual information can prevent buyers from filling unanswered questions with worst-case assumptions.

How Amy Stockberger Real Estate Can Help

Large-scale development is one more reason local real estate expertise matters.

Amy Stockberger Real Estate helps buyers evaluate more than the home itself. Our team can help you understand the property, surrounding area, available disclosures, neighborhood conditions, and factors that could affect your long-term ownership experience.

Our support continues after closing through Lifetime Home Support™, including access to trusted Home Support Team partners, homeowner resources, local connections, moving support, and concierge-style assistance.

Before buying or selling near a major development, use our Sioux Falls, SD Real Estate Help Center to get local answers 24/7.

You can also schedule a consultation with Amy Stockberger Real Estate to discuss your property, neighborhood, or next move.

Local Resources to Explore

• City of Sioux Falls Planning and Development Services

• Realtor.com Data Center Housing Research

• HousingWire Data Center and Real Estate Analysis

• Sioux Falls Neighborhood and Community Guides

• Sioux Falls Relocation Guide

• Sioux Falls, SD Real Estate Help Center

Ready To Take the Next Step?

Whether you are considering a home near a proposed development or preparing to sell in a changing neighborhood, start with reliable local information.

Amy Stockberger Real Estate can help you evaluate the property, understand the surrounding area, and make a decision based on facts—not assumptions.

Our team is here to serve—before, during, and forever.

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