$100 billion in private investment coming to Paducah Gaseous Diffusion Plant site

$100 billion in private investment will create a data center and energy-generation campus on the former Paducah Gaseous Diffusion Plant site in western McCracken County, creating about 8,000 construction jobs and some 600 permanent jobs.

With an announcement scheduled for Wednesday, the Department of Energy released the information about the facility. A partnership among power companies Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System will not only supply power for the facility, but they plan to generate the power to operate it with a NextEra-developed grid-connected natural gas-fired generation plant providing 2 gigawatts of power. The company also plans to install 2.6 gigawatts of battery storage. The combination will provide more than the necessary 1.8 gigawatts needed for what is described as an “artificial intelligence and high-performance computing innovation campus.”  

U.S. Secretary of Energy Chris Wright said, “Thanks to President Trump, the U.S. government is leveraging its assets—like our federal lands—to add power generation, create jobs, and ensure the United States wins the AI race. The President’s Ratepayer Protection Pledge ensures America can build the energy infrastructure needed to power the AI revolution while lowering electricity costs for American families and businesses. By transforming former DOE sites into engines of innovation and economic growth, we can revitalize communities with increased tax revenue and thousands of jobs, while also strengthening America’s energy security.”

DOE Assistant Secretary for Environmental Management Tim Walsh added, “We are intently focused on finding ways to put federal land back to productive use for the American people. That commitment is at the heart our American Energy Hubs initiative to increase affordable energy, lead the globe in AI innovations, grow local economies, and fulfill our obligation to restore and revitalize communities. Thanks to President Trump and Secretary Wright, we are giving Americans hope for the future by strengthening and securing our great nation for decades to come.”

The Advanced Energy Hubs Initiative created by the DOE is directed at repurposing federal sites into campuses for advanced manufacturing, tech innovation, and energy production. Paducah is well-suited for this type of development with the land available,  power transmission capacity, fiber connection, and high-capacity water infrastructure. The project is based on a similar concept slated for Paducah’s sister site in Portsmouth, Ohio.

Kentucky Congressman Andy Barr applauded the announcement and said, “The $100 billion private sector investment in Paducah is historic. I’m grateful to Secretary Wright for his leadership and partnership in securing a long-term commitment from the federal government to back this project. After speaking with local and state officials who were strongly supportive of this investment, I personally advocated with the Secretary to help make the project happen. Together with our private sector partners, this investment will create jobs, strengthen our energy security, and deliver lasting economic growth for Paducah and the Commonwealth for decades to come.”

The project is slated to be online in 2031.



Full release from the Department of Energy:

Press Release

For Immediate Release

July 29, 2026

Energy Department Announces Partnership to Expand Reliable, Affordable Energy Access and Power America’s AI Future in Western Kentucky

WASHINGTON—The U.S. Department of Energy (DOE) today announced a landmark partnership with Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System to redevelop portions of DOE’s Paducah Site into a data center campus accompanied by new affordable energy infrastructure. The more than $100 billion privately funded investment, one of the largest in Kentucky’s history, is expected to create approximately 8,000 construction jobs and 600 permanent jobs.

Consistent with President Trump’s Ratepayer Protection Pledge, the project’s generation and storage capacity would exceed the campus’s energy needs, allowing excess electricity to be delivered to the regional grid, helping reduce energy costs for American families and businesses. At or near the Paducah campus, NextEra Energy plans to develop 2 gigawatts (GW) of new grid-connected natural gas-fired generation, upgrade existing transmission infrastructure, and deploy up to 2.6 GW of battery energy storage to support a new 1.8 GW artificial intelligence and high-performance computing (HPC) innovation campus.

“Thanks to President Trump, the U.S. government is leveraging its assets—like our federal lands—to add power generation, create jobs, and ensure the United States wins the AI race,” said U.S. Secretary of Energy Chris Wright. “The President’s Ratepayer Protection Pledge ensures America can build the energy infrastructure needed to power the AI revolution while lowering electricity costs for American families and businesses. By transforming former DOE sites into engines of innovation and economic growth, we can revitalize communities with increased tax revenue and thousands of jobs, while also strengthening America’s energy security.”

“The $100 billion private sector investment in Paducah is historic,” said U.S. Congressman Andy Barr (R-KY). “I’m grateful to Secretary Wright for his leadership and partnership in securing a long-term commitment from the federal government to back this project. After speaking with local and state officials who were strongly supportive of this investment, I personally advocated with the Secretary to help make the project happen. Together with our private sector partners, this investment will create jobs, strengthen our energy security, and deliver lasting economic growth for Paducah and the Commonwealth for decades to come.”

The project advances DOE’s American Energy Hubs initiative, which is transforming former DOE sites into engines of affordable energy production, advanced manufacturing, technological innovation, and economic growth. Building on the partnership model announced at the Portsmouth Site, the Paducah partnership demonstrates how federal, state, local, and private-sector collaboration can accelerate investment while delivering lasting benefits to surrounding communities.

With existing transmission capacity, water infrastructure, fiber connectivity, and available land, the Paducah Site is uniquely positioned to support large-scale AI infrastructure and attract major private investment while continuing environmental cleanup and advancing the site’s long-term redevelopment.

“We are intently focused on finding ways to put federal land back to productive use for the American people,” said DOE Assistant Secretary for Environmental Management Tim Walsh. “That commitment is at the heart our American Energy Hubs initiative to increase affordable energy, lead the globe in AI innovations, grow local economies, and fulfill our obligation to restore and revitalize communities. Thanks to President Trump and Secretary Wright, we are giving Americans hope for the future by strengthening and securing our great nation for decades to come.”

Following DOE’s Request for Offers issued in November 2025, Brookfield was selected to develop and operate the Paducah data center campus, while NextEra Energy was selected to build and own the dedicated energy infrastructure that will power the site. Big Rivers Electric Power Corporation will provide wholesale electric service, Jackson Purchase Energy Cooperative will provide retail electric service, and Paducah Power System will serve as a community partner. The power service agreement remains subject to approval by the Kentucky Public Service Commission.

Construction is expected to be completed in 2031.


Photo courtesy of GoogleMaps