More details on government turning Paducah uranium plant into an AI data center and gas power complex
The U.S. Department of Energy is converting the Paducah Gaseous Diffusion Plant in Kentucky into a $100 billion AI data center and natural gas power complex with partners Brookfield Asset Management and NextEra Energy. Local environmental and community groups have raised significant concerns about the project's environmental impact, water usage, and the large gas-fired power plant. The development is part of a national strategy to enhance AI superiority and economic growth by converting Cold War-era sites.
The U.S. Department of Energy (DOE) is converting the Cold War-era Paducah Gaseous Diffusion Plant in rural western Kentucky into a $100 billion AI data center and natural gas power complex. This initiative, part of the Trump administration's strategy to ensure U.S. superiority in AI, involves private equity funding and is expected to create thousands of jobs and substantial investment.
Investment firm Brookfield Asset Management has been selected to develop and operate the data center. Florida-based NextEra Energy will build and own the power generation components, which include 2 gigawatts of natural gas-fired generation, transmission network upgrades, and 2.6 gigawatts of battery storage to support a new 1.8 gigawatt AI data center campus. The power service agreement requires approval from state utility regulators, with construction projected to finish by 2031.
Energy Secretary Chris Wright emphasized the project's role in transforming former DOE sites into "engines of innovation and economic growth." This follows a similar DOE project announced in March at the Portsmouth Gaseous Diffusion Plant in Ohio and an earlier selection of Amentum to develop a site in South Carolina.
However, the project faces scrutiny from local and environmental groups. Protect McCracken County has raised questions about the uranium enrichment and data center developments, particularly regarding their proximity to a river used by 5 million downstream residents, calling for an independent impact study. Byron Gary, a senior attorney for the Kentucky Resources Council, expressed concerns about developing the contaminated site, withdrawing water from the water table, the climate impact of a large gas-fired power plant, and ensuring ratepayers are not forced to subsidize the project. His organization also seeks assurances that the DOE will not bypass environmental protection laws and permitting processes.