Proposed ban threatens plan for Paducah data center
A proposed $100 billion AI data center planned for the Paducah Gaseous Diffusion Plant in Kentucky is threatened by federal legislation. U.S. Rep. Rashida Tlaib introduced a bill to ban large AI data centers on federal land, putting the Paducah project, which is on federal property, in a vulnerable position. This comes amidst a national debate over AI's significant electricity demands and potential environmental impacts.
A $100 billion artificial intelligence (AI) data center development planned for the Paducah Gaseous Diffusion Plant in Kentucky is facing a significant threat from proposed federal legislation. The project, slated for federal land, is now in the crosshairs of the 'No AI Data Centers on Federal Lands Act,' introduced by U.S. Rep. Rashida Tlaib, D-Mich. This bill aims to prohibit the construction and operation of large AI data centers on federal property, including military installations, and would require existing ones to be removed and sites remediated.
The U.S. Department of Energy (DOE) had recently announced plans to transform portions of the former Paducah uranium enrichment site into a massive AI and high-performance computing campus, with multinational alternative investment firm Brookfield Corp. and energy holding company NextEra Energy Resources LLC selected to build and power the project. This initiative, known as the Paducah American Energy Hub, is a key part of the Trump administration's strategy to use federal land for accelerated data center and energy development. NextEra CEO John Ketchum stated the project would position the region for future industries and serve as a model for large-load energy users.
The proposed ban by Rep. Tlaib, supported by other Democratic lawmakers including Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders, reflects a growing Democratic effort to slow down the rapid expansion of hyperscale data centers. Critics argue that the industry's enormous demands for electricity and water could increase pollution, strain water supplies, and raise electricity costs for surrounding communities. While Kentucky Republicans, including Rep. Andy Barr and State Senator Danny Carroll, strongly back the redevelopment plan as a major economic opportunity for Western Kentucky, Democratic Gov. Andy Beshear noted he was not briefed on the proposal. The bill faces poor odds in a Republican-controlled Congress, but it highlights a deepening national debate on the federal government's role in the AI boom.
Currently in the planning and development stage, with final agreements pending, the first phase of the Paducah campus is expected to come online in 2028, with full development by 2032. The project would support over 1.2 gigawatts of computing capacity and up to 1.8 gigawatts of utility capacity, with NextEra planning to develop up to 2 gigawatts of natural gas-fired generation and 2.6 gigawatts of battery storage.