Henrico uses data center revenue to fund affordable housing
Henrico County is utilizing tax revenue generated by data centers to fund an affordable housing trust fund. In 2024, the county allocated $60 million from this revenue to help first-time homebuyers reduce the cost of new homes. This initiative addresses housing affordability while leveraging the economic impact of data center developments.
Data centers continue to be a subject of debate across the Commonwealth, particularly concerning their impact on power demand and development locations. Henrico County leaders are taking a proactive approach by using the substantial revenue generated by these facilities to tackle another pressing issue: housing affordability.
In 2024, Henrico County set aside $60 million from data center tax revenue to establish an affordable housing trust fund. This fund aims to lower the cost of new homes for first-time buyers, making homeownership more accessible. Xavier Nora, a 23-year-old, is one of the beneficiaries, receiving an assistance amount of around $48,000, which he stated would have been impossible for him to save in three years on his own.
Community Revitalization Director Eric LeBeau explained that while many other localities typically integrate data center revenue into their general budget, Henrico County made a deliberate decision to dedicate this income specifically to housing affordability. The program targets families making between 60% and 120% of the area's median income, offering grants that average between $80,000 and $90,000.