DOE Announces $100 Billion AI Data Center in Kentucky

The United States Department of Energy announced a $100 billion privately funded project to develop an artificial intelligence data center campus at the former Paducah Gaseous Diffusion plant site in western Kentucky. Branded as the Paducah American Energy Hub, the project aims to transform the former uranium enrichment site into a center for technological innovation. The campus is expected to support 1.8 GW of compute capacity and 1.8 GW of utility capacity, with completion slated for 2031 or 2032.

A coalition led by Brookfield will lease the land and operate the campus, while NextEra Energy will build and own 4.6 GW of dedicated power generation, consisting of 2 GW of natural gas and 2.6 GW of battery storage. The development is projected to create 8,000 construction jobs and 600 permanent positions. To protect local consumers, the project follows the Trump administration's Ratepayer Protection Pledge, ensuring infrastructure costs are not passed to the public.

While Republican legislators and federal officials praised the initiative as a generational opportunity for national security and economic growth, the project has faced internal state friction. Governor Andy Beshear's office stated that the governor had not been briefed by the involved companies or agencies and raised questions regarding the project's environmental impact, power requirements, and tax contributions. Final approval for the power service agreement from the Kentucky Public Service Commission remains pending.