DOE announces $100B Kentucky AI data center project

The Energy Department said Friday it is partnering on a privately financed project to build a 1.8 GW artificial intelligence and high-performance computing campus at the former Paducah nuclear site in western Kentucky, a development the agency valued at more than $100 billion.

According to the department, the campus is expected to create about 8,000 construction jobs and 600 permanent positions. Construction is scheduled for completion in 2031.

The project would pair the data-center campus with new energy infrastructure. The department said the site would be supported by new natural-gas generation, battery storage and transmission improvements serving the campus and the surrounding area.

Brookfield was chosen to develop and operate the data-center campus after the department issued a request for offers in November 2025. NextEra Energy was selected to build and own the energy facilities that would serve the campus.

Under the plan, NextEra would develop about 2 GWs of grid-connected natural-gas generation near the Paducah site and install as much as 2.6 GW of battery storage. Existing transmission facilities also would be upgraded. The department said the project’s generation and storage capacity would exceed the campus’s needs, with surplus electricity available to the regional grid.

The proposed power-service agreement still requires approval from the Kentucky Public Service Commission, the department said. Under that agreement, Big Rivers Electric Power Corp. would provide wholesale electric service, while Jackson Purchase Energy Cooperative would provide retail service. Paducah Power System was identified as a community partner.

Secretary Wright said the arrangement would put federal property to use for power generation, jobs and artificial-intelligence infrastructure.

"The United States government is leveraging its assets - like our federal lands - to add power generation, create jobs, and ensure the United States wins the AI race", Wright said.

The department said the project falls under its American Energy Hubs initiative, which is intended to redevelop former federal energy sites for power production, advanced manufacturing and technology projects.

At Paducah, the department said the site already has transmission capacity, water facilities, fiber connections and available land. Tim Walsh, assistant secretary for environmental management at the DOE, said the department was seeking productive uses for federal land while continuing its cleanup obligations.

The Paducah Gaseous Diffusion Plant operated for decades as part of the nation’s nuclear-materials program. The Department of Energy has been carrying out environmental restoration and decommissioning work there.

Rep. Andy Barr, R-Ky., said the investment would strengthen the state’s economy and energy infrastructure.

The DOE has not provided additional details on the campus’s construction schedule, individual facilities or final financing arrangements.

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