AI data center coming to Western Kentucky

The U.S. Department of Energy (DOE) has announced a significant partnership and over $100 billion in private funding for a new artificial intelligence (AI) data center campus in Paducah, Kentucky. This massive investment, one of the largest in Kentucky's history, will redevelop portions of DOE's Paducah Site into a 1.8 GW AI and high-performance computing (HPC) innovation campus. The project is expected to generate approximately 8,000 construction jobs and 600 permanent positions, with an anticipated completion by 2031.

Brookfield has been selected to develop and operate the data center campus, while NextEra Energy will build and own the dedicated energy infrastructure. This infrastructure will include two gigawatts of new grid-connected natural gas-fired generation and up to 2.6 GW of battery energy storage. The plan ensures that the generation and storage capacity will exceed the campus's energy needs, allowing excess electricity to be delivered to the regional grid, potentially reducing energy costs for American consumers and businesses.

Kentucky U.S. Congressman Andy Barr, U.S. Secretary of Energy Chris Wright, and Kentucky Attorney General Russell Coleman lauded the announcement, emphasizing the project's benefits for job creation, energy security, and economic growth for Paducah and the Commonwealth. Secretary Wright highlighted the project as an example of the U.S. government leveraging its assets to power the AI revolution in line with President Donald Trump's Ratepayer Protection Pledge. Big Rivers Electric Power Corporation will provide wholesale electric service, Jackson Purchase Energy Cooperative will handle retail service, and Paducah Power System will serve as a community partner.

The power service agreement for the project is subject to approval by the Kentucky Public Service Commission.