Proposed ban threatens plan for Paducah data center
Proposed federal legislation that would ban AI data centers on federal land threatens a planned $100 billion data center development at the former Paducah Gaseous Diffusion Plant in Kentucky. The project, involving Brookfield Corp. and NextEra Energy, is a major economic opportunity for the state but is now in the crosshairs of a national debate over AI's enormous electricity and water demands. U.S. Rep. Rashida Tlaib introduced the bill to prevent federal land from being used for industrial-scale AI development due to environmental and infrastructure concerns.
A $100 billion planned artificial intelligence data center at the former Paducah Gaseous Diffusion Plant in Paducah, Kentucky, is threatened by proposed federal legislation. U.S. Rep. Rashida Tlaib, D-Mich., introduced the "No AI Data Centers on Federal Lands Act," which seeks to prohibit the construction and operation of large AI data centers on federal property and require the removal of existing facilities.
This bill directly impacts the Paducah project, which is slated for federal land and was announced by the U.S. Department of Energy just days after Tlaib's proposal. The project, known as the Paducah American Energy Hub, is a collaboration between multinational alternative investment firm Brookfield Corp. and energy holding company NextEra Energy Resources LLC. It is expected to create 8,000 construction jobs and 600 permanent jobs, supporting over 1.2 gigawatts of computing capacity.
The legislation reflects a growing national debate, primarily among Democrats, over the immense electricity and water demands of AI data centers. Tlaib, along with other Democratic lawmakers like Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders, argues that such development on public lands could increase pollution, strain water supplies, and raise electricity costs. While the bill faces long odds in a Republican-controlled Congress, it highlights a tension between federal environmental concerns and Kentucky's Republican-backed efforts to attract high-tech investment to the region.