T
he surge of generative AI has spurred a frantic race to build data‑center farms, grabbing land, straining utilities, and igniting local disputes. In Henrico County, Virginia, officials have flipped that narrative. Instead of letting the new infrastructure become a source of contention, they’re channeling the tax revenue it generates into a program that makes homeownership possible for first‑time buyers.
Senator Mark Warner praised the county’s initiative as “innovative” and “nation‑wide noteworthy.” Henrico’s Affordable Housing Trust Fund is funded by more than $1 billion in local tax dollars from companies such as Meta, Google, and Amazon. Rather than waiting for federal aid, the fund directly reduces the purchase price of new homes, targeting workers earning 60 % to 120 % of the area median income (AMI). The goal is to let residents buy houses near their jobs, turning the AI boom into a tangible benefit for ordinary people amid fears of job displacement.
Henrico’s program is pioneering. County staff, led by Community Revitalization Director Eric Leabough, have been iterating on the model as it rolls out. Developers submit project costs and desired sale prices; if approved, the trust fund contributes tens of thousands of dollars per unit. The money is layered on top of other local incentives—permit fee waivers, credits for water and sewer hookups, and expedited planning reviews—further lowering costs for both builders and buyers.
For example, a market price of $460,000 could be reduced to $380,000 with $80,000 in trust‑fund support. Additional fee waivers and credits bring the amount financed even lower. Henrico’s cautious budgeting allows the county to treat the new revenue as a windfall, earmarking it for housing rather than routine expenses.
Why the need? Henrico’s economic indicators—low unemployment, steady hiring by major employers, and a growing tax base—mask a hidden affordability crisis. Median sale prices rose 32 % since 2020, while the income required to purchase a home jumped from roughly $70,000 to $120,000—a 70 % increase. Essential workers—police officers, teachers, retail staff—earn far below the threshold needed to afford local homes, leaving them as renters or commuters from distant suburbs.
The program’s impact is visible at Discovery Ridge, a townhome community in a high‑cost area. Units normally sell in the mid‑$400,000s. Mungo Homes, the developer, partnered with the trust fund to offer a discount. Buyers signed contracts at about $430,000; at closing, the trust fund provided a $112,000 grant, reducing the final price to $318,000. The homes are identical to full‑price units, and buyers need no out‑of‑pocket cash unless they choose to reduce monthly payments with savings. Deed restrictions require owners to stay for roughly ten years to keep the benefit and mandate resale to another income‑qualified buyer, preserving affordability.
Henrico’s experiment sits amid a paradox. The AI boom fuels fears of job loss, yet the labor market shows only modest shifts since late 2022. High‑income sectors—tech, finance, professional services—are adding jobs slowly or shedding them, while growth remains in lower‑wage fields like education and healthcare. Because high earners are the only ones who can meet today’s mortgage thresholds, any downturn in those sectors can ripple into the housing market. In Henrico, median list prices fell about 7 % from October 2024 to 2025, while national prices remained flat, suggesting local job composition is influencing demand.
The Affordable Housing Trust Fund does not solve AI‑related job precarity, but it captures a slice of the AI windfall and translates it into equity for residents. By reducing purchase prices and layering incentives, the county offers a path to homeownership that would otherwise be unattainable. The model demonstrates how data‑center revenue can be redirected to build lasting wealth for the community that hosts the infrastructure, turning a potential source of conflict into a catalyst for local prosperity.
