Proposed Federal Land Ban Threatens Kentucky Data Center Project
A proposed federal bill, the "No AI Data Centers on Federal Lands Act," threatens a planned $100 billion AI data center project at a former uranium enrichment site in Paducah, Kentucky. The legislation aims to ban large AI data centers on federal land due to concerns over high electricity demand, water usage, and potential environmental impacts. This bill has sparked a national debate over the rapid expansion of the AI industry and its resource consumption.
U.S. Representative Rashida Tlaib (D-Mich.) introduced the "No AI Data Centers on Federal Lands Act," a bill that seeks to prohibit the construction and operation of large AI data centers on federal land. This proposed legislation directly threatens a planned $100 billion AI and high-performance computing campus at a former uranium enrichment site in Paducah, Kentucky, which the U.S. Department of Energy (DOE) recently announced. The Paducah American Energy Hub, to be developed by Brookfield Corp. and NextEra Energy Resources LLC, is slated for federal property and aims to be one of the largest data center campuses in the country, supporting up to 1.8 gigawatts of utility capacity with new natural gas and battery storage infrastructure.
The bill reflects a growing Democratic effort, supported by figures like Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders, to slow the AI industry's rapid expansion. Proponents of the ban, including environmental groups, cite concerns about the industry's enormous demands for electricity and water, potential pollution, and strain on local resources. Rep. Tlaib stated her intention to protect public lands, health, and environment from "harmful AI data centers."
The Paducah project, however, has strong backing from Kentucky Republicans, including Rep. Andy Barr and State Senator Danny Carroll, who view it as a significant economic opportunity for Western Kentucky. Kentucky Attorney General Russell Coleman also supports the plan, though Democratic Governor Andy Beshear was notably not briefed. The DOE selected the Paducah site as part of a Trump administration initiative to use federal land to accelerate data center and energy development. The project is currently in the planning and development stage, with the first phase expected online in 2028 and full development by 2032.