DOE announces Paducah data center campus with $100B private investment

The U.S. Department of Energy (DOE) has announced a significant partnership to transform a portion of its former Paducah, Kentucky, site into a state-of-the-art data center campus. This initiative, one of Kentucky's largest private investments, is valued at over $100 billion and is projected to generate approximately 600 permanent positions and 8,000 construction jobs.

U.S. Secretary of Energy Chris Wright, who visited Kentucky for the announcement, emphasized the project's alignment with the President’s Ratepayer Protection Pledge. He stated that the endeavor aims to build essential energy infrastructure for the AI revolution while simultaneously reducing electricity costs for consumers. The plan includes transforming former DOE sites into hubs for innovation and economic growth, bolstering communities with increased tax revenue and employment opportunities, and enhancing America’s energy security.

Key to the project's infrastructure, NextEra Energy plans to construct a 2-gigawatt natural gas power plant, connect it to the main grid, and implement up to 2.6 gigawatts of battery energy storage. This extensive energy setup is designed to power the new 1.8-gigawatt campus, which will focus on advancements in AI and high-performance computing. U.S. Rep. Andy Barr, R-Ky., voiced his support, highlighting the project's potential for job creation, energy security, and lasting economic growth for Paducah and the Commonwealth.

Brookfield was selected to develop and manage the data center campus following a DOE Request for Offers in November 2025, while NextEra Energy was chosen for the energy infrastructure. Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System are also partners in providing wholesale and retail electric services, with the power service agreement awaiting approval from the Kentucky Public Service Commission. Construction of the campus is slated for completion in 2031.