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Living next to the cloud - The impact of data center development on housing prices

Tilburg, Timber van (2021) Living next to the cloud - The impact of data center development on housing prices. Master thesis.

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Abstract

Data centers are an essential link in our digital infrastructure. Together they form the backbone of our digitalised lifestyles and economies. Since our lifestyles and economies keep pace for further digitalisation, our digital infrastructure needs to lead the way. Therefore, ad- ditional data center development is necessary, however not-in-my-backyard (NIMBY). Lately, data center development can count on opposition from residents and public institutions. Data centers would contribute to the transition of the Dutch agricultural landscape, cause envi- ronmental damage, and lead to further scarcity of available development land for housing and employment. This master thesis will investigate whether data center development has an external impact on the transaction prices of nearby residential units. By using a difference-in- differences regression method, the results show that the transaction price of a house located nearby a data center increases, on average, by 5.27% after development. This would suggest that Dutch spatial policies can be successful in their attempt to ensure data center develop- ment has no external negative impact on nearby residential units.

Item Type: Thesis (Master)
Degree programme: Real Estate Studies
Supervisor: Margaritis, E.
Date Deposited: 15 Sep 2021 11:53
Last Modified: 15 Sep 2021 11:53
URI: https://frw.studenttheses.ub.rug.nl/id/eprint/3724

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