Paducah site receives $100 billion investment to add data center campus

The U.S. Department of Energy (DOE) revealed a $100 billion privately-funded investment to transform parts of the former Paducah Gaseous Diffusion Plant in West Paducah, Kentucky, into a new data center campus. This extensive redevelopment project, slated for completion by 2031, is a collaborative effort involving the DOE, Brookfield, NextEra Energy, Big Rivers Electric Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System. DOE officials anticipate the initiative will generate approximately 8,000 temporary construction jobs and 600 permanent positions.

Brookfield has been tapped to develop and operate the data center campus, while NextEra Energy is responsible for constructing and owning the associated energy infrastructure, pending approval from the Kentucky Public Service Commission. The project is aligned with the DOE's American Energy Hubs initiative, which aims to repurpose federal lands for energy production, technological innovation, and economic growth, while also supporting environmental cleanup activities at the site.

According to DOE Assistant Secretary for Environmental Management Tim Walsh, the commitment is to "put federal land back to productive use." U.S. Secretary of Energy Chris Wright emphasized that the project, supported by President Donald Trump's Ratepayer Protection Pledge, will ensure the U.S. leads in AI innovation and strengthens energy security. The new energy infrastructure is designed to produce more electricity than the data center campus needs, allowing the surplus to be fed into the regional grid, potentially lowering energy costs for local residents and businesses. U.S. Congressman Andy Barr lauded the investment as "historic" and a boost for job creation and economic growth in Paducah and Kentucky.