How AI Energy Demand Could Reshape the Housing Market

President Trump told a group of tech CEOs something that’ll bring a smile to the face of anyone investing in data center real estate. 

Last week, the White House pledged to help technology companies secure enough electricity for the massive data centers driving artificial intelligence. 

That may be good news for Silicon Valley, but hooking up energy-hungry data centers to the U.S. power grid could come at a cost for American homeowners—in more ways than one. 

The Dinner Details

On September 4, Trump gathered some of the biggest names in tech at the White House, following an AI Education Task Force roundtable hosted by First Lady Melania Trump. Attendees included Apple’s Tim Cook, Google’s Sundar Pichai, Meta’s Mark Zuckerberg, OpenAI’s Sam Altman, and IBM’s Arvind Krishna.

Absent from the gathering were Elon Musk and Nvidia’s Jensen Huang, both of whom have opted for their own channels of influence with the administration. 

Rain forced the dinner indoors after staff had set up tables in the Rose Garden.

As the evening unfolded, the CEOs took turns thanking Trump for his “pro-business, pro-innovation” stance. Cook announced Apple plans to invest $600 billion in the U.S., while Altman praised the president’s leadership for setting up the U.S. “for a long period of leading the world.”

Electricity, AI, and the Grid

The real estate angle comes in with Trump’s promise to make life “very easy” for tech companies when it comes to electricity and permitting for AI data centers. These facilities require continuous, high-capacity power, and they’re multiplying across the country.

Hence the reason investors like Kevin O’Leary are bullish on data center real estate. 

David Conn, vice president at utility software company Exceleron, explained the impact:

“Utility prices are rising across the board, partly due to higher energy demand from data centers and partly from extreme weather, growing electrification, and the need to upgrade aging infrastructure.”

In fact, residential electricity prices already climbed 6.5% in a year, from 16.41 cents per kilowatt-hour in May 2024 to 17.47 cents in May 2025, according to the U.S. Energy Information Administration.

Aaron Wright, CEO of climate tech company Solomon e3, put it bluntly:

“As utilities race to meet AI-driven energy demand, infrastructure costs are rising and those costs are passed [on] to everyday ratepayers.”

Data Centers vs. Housing

Beyond monthly bills, the AI boom has implications for the housing market itself. 

Data centers aren’t just hungry for power. They’re competing with residential neighborhoods for land, water, and even peace and quiet.

  • Capital pressure: Trillions are being funneled into data center buildouts, which can crowd out housing investment and keep mortgage rates elevated.
  • Lock-in effect: Sellers are staying put, reluctant to give up low mortgage rates, while buyers contend with affordability challenges.
  • Neighborhood impacts: The hum of cooling systems, water shortages, and strained resources make tech-fueled neighbors less attractive than glossy headlines suggest.

Key Details:

  • At a White House dinner, President Trump told tech CEOs he would help them procure enough electricity to power the massive data centers needed to develop AI.
  • U.S. residential electricity prices rose 6.5% from May 2024 to May 2025, driven partly by AI data centers.
  • Tech leaders including Tim Cook and Sam Altman praised Trump’s pro-innovation stance, with Apple announcing a $600 billion U.S. investment.
  • Rising infrastructure costs are already prompting utilities in some states to request residential rate hikes, putting pressure on housing affordability.

Sarah Lentz | Sep 9, 2025 | Housing Market

https://nowbam.com/how-ai-energy-demand-could-reshape-the-housing-market/

@ChuckBarberini - #ChuckBarberiniRealEstate - @ChuckBarberiniRealEstate

@Golden_State_Guide_Service - @Citizen.Number.One


 

Location: Martinez, CA 94553, USA

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