Paducah DOE site picked for AI, computing campus, including power generation and storage
The U.S. Department of Energy announced a partnership to redevelop its Paducah Site in Kentucky into a $100+ billion AI and high-performance computing data center campus. Brookfield will develop and operate the campus, while NextEra Energy will build dedicated energy infrastructure, including 2 GW of natural gas generation and 2.6 GW of battery storage. This project, involving local utilities, is expected to create thousands of jobs and enhance regional grid capacity.
The U.S. Department of Energy (DOE) announced a major partnership to transform portions of its Paducah Site in Kentucky into an artificial intelligence and high-performance computing data center campus. The project, touted as a privately-funded investment exceeding $100 billion, is projected to generate approximately 8,000 construction jobs and 600 permanent positions, with construction anticipated to conclude by 2031.
Under the agreement, Brookfield has been selected to develop and operate the data center campus. NextEra Energy will be responsible for building and owning the dedicated energy infrastructure, which includes plans for 2 gigawatts of new grid-connected natural gas generation and the deployment of up to 2.6 gigawatts of battery energy storage at or near the site. This infrastructure is designed to support the 1.8-gigawatt computing campus, with excess electricity potentially being fed into the regional grid to help reduce energy costs.
The initiative involves several local utility companies: Big Rivers Electric Power Corporation will provide wholesale electric service, Jackson Purchase Energy Cooperative will handle retail electric service, and Paducah Power System will serve as a community partner. The power service agreement awaits approval from the Kentucky Public Service Commission.
Energy Secretary Chris Wright highlighted that the project aligns with President Donald Trump’s "Ratepayer Protection Pledge" and advances the DOE’s "American Energy Hubs" initiative, which aims to repurpose former DOE sites for energy production and technology development. U.S. Rep. Andy Barr and Kentucky Attorney General Russell Coleman both praised the historic investment.