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The U.S. Department of Energy has announced a privately funded investment exceeding $100 billion to redevelop portions of its Paducah Site in Kentucky into an artificial intelligence data center campus backed by new power infrastructure.
The project combines a 1.8-gigawatt AI and high-performance computing campus with new electricity generation, transmission upgrades, and battery storage. DOE said the effort is being carried out through a partnership that includes Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative and Paducah Power System.
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Under the plan, NextEra Energy will develop about 2 gigawatts of grid-connected natural gas-fired generation, modernize transmission infrastructure, and add up to 2.6 gigawatts of battery energy storage.
According to DOE, the planned power generation and storage will be greater than the campus's electricity needs, with excess power available to the regional electric grid.
Brookfield was selected to develop and operate the data center campus through DOE's Request for Offers process launched in late 2025.
Big Rivers Electric Power Corporation is set to provide wholesale electric service, while Jackson Purchase Energy Cooperative will provide retail electric service. Paducah Power System will take part as a community partner. The power service agreement is still subject to approval by the Kentucky Public Service Commission.
DOE estimates the project will create about 8,000 construction jobs during buildout and about 600 permanent jobs once completed. Construction is expected to be completed in 2031.
The redevelopment is part of DOE's American Energy Hubs initiative, which centers on repurposing former federal sites for energy production, advanced manufacturing and technology-related investment. DOE identified existing transmission infrastructure, water resources, fiber connectivity and available land at the Paducah Site as factors supporting the project.
DOE said growing demand for artificial intelligence infrastructure is fueling major investment in energy generation and data center development across the United States.
The department also said the Paducah redevelopment represents one of the largest announced U.S. investments combining data center construction with utility-scale energy infrastructure, highlighting demand for coordinated delivery of power generation, transmission upgrades, battery storage and advanced computing facilities as AI-related development expands nationwide.
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