$100B data center, gas-fired power plant to be developed around Paducah DOE site
A $100 billion data center campus and a 2-gigawatt natural gas-fired power plant will be developed on federally-owned land at the former Paducah Gaseous Diffusion plant site in western Kentucky. Brookfield will develop the data center, and NextEra Energy will build the power infrastructure. The project, one of Kentucky's largest investments, is expected to create thousands of jobs.
The U.S. Department of Energy (DOE) has announced plans for a $100 billion privately funded data center campus and a dedicated 2-gigawatt natural gas-fired power plant at the former Paducah Gaseous Diffusion plant site in far western Kentucky. This significant investment, which follows a request for proposals issued last fall, is hailed as one of Kentucky's largest projects and is expected to generate 8,000 construction jobs and 600 permanent positions. The Paducah DOE site was identified by the Trump administration last year as one of 16 federal facilities suitable for data center and energy infrastructure development.
Brookfield, a New York-based global investment firm, will be responsible for developing and operating the data center campus. Concurrently, NextEra Energy, a major American power utility, is slated to construct and own the necessary energy infrastructure, which includes upgrading existing transmission, installing 2.6 GW of battery storage, and building the gas-fired plant. Big Rivers Electric Power Corporation will provide wholesale electricity, with its member-owner Jackson Purchase Energy Cooperative handling retail service. The Paducah Power System is named as a community partner, with final approval for the power service agreement pending from the Kentucky Public Service Commission.
U.S. Secretary of Energy Chris Wright stated that the project, part of the American Energy Hubs initiative, leverages federal assets to enhance power generation, create jobs, and bolster the U.S. lead in AI. The energy generation capacity is projected to exceed the data center's needs, contributing surplus electricity to the regional grid and potentially reducing energy costs. DOE officials, including Assistant Secretary Tim Walsh, emphasized the site's suitability due to its existing transmission capacity, water infrastructure, fiber connectivity, and available land, which will also facilitate continued environmental cleanup. Construction is anticipated to conclude by 2031.