The U.S. Department of Energy unveiled plans on July 29 for a more than $100 billion private investment to turn part of the former Paducah Gaseous Diffusion Plant in Paducah, Kentucky, into one of the nation’s largest AI data center campuses. Federal officials said the project would create roughly 8,000 construction jobs and 600 permanent positions, with a consortium of investment firms, data center brokers and local utilities backing the development.

The Paducah campus would pair large-scale AI computing infrastructure with dedicated energy systems for its electricity needs. The DOE said on-site power generation would exceed the campus’s demand: a natural gas-fired power plant and battery energy storage would be capable of supplying 4.6 gigawatts of electricity, while the data campus would draw 1.8 gigawatts.

The project adds to the redevelopment of the former uranium enrichment site, where federal and state officials have spent years planning environmental cleanup, industrial redevelopment and transfers of parts of the reservation to private industry. The DOE said the site has available water infrastructure, fiber connectivity and land for large-scale AI infrastructure, aligning with its American Energy Hubs Initiative to turn former agency sites into affordable energy substations that can attract manufacturing, tech innovation and economic growth.

Energy Secretary Chris Wright said former DOE sites can become “engines of innovation and economic growth” with more tax revenue and thousands of jobs. In March, DOE said it would revitalize its Portsmouth, Ohio, uranium enrichment site into a 10-gigawatt power generation facility. Earlier this year, Kentucky officials announced General Matter’s plan to invest $1.5 billion in a new uranium enrichment facility at the Paducah site, while Global Laser Enrichment has proposed an advanced enrichment project.

Brookfield Corp., a Canadian alternative investment firm, was selected to develop and operate the Paducah data center campus after a bid selection process in November. NextEra Energy Inc. will build and own the dedicated energy infrastructure, Big Rivers Electric Power Corp. will provide wholesale electric service, and Jackson Purchase Energy Cooperative will provide retail service in Western Kentucky. Paducah Power System is also a community partner, but the power service agreement requires approval from state regulators. Construction is expected to be completed by 2031.

The U.S. Department of Energy unveiled plans on July 29 for a more than $100 billion private investment to turn part of the former Paducah Gaseous Diffusion Plant in Paducah, Kentucky, into one of the nation’s largest AI data center campuses. Federal officials said the project would create roughly 8,000 construction jobs and 600 permanent positions, with a consortium of investment firms, data center brokers and local utilities backing the development.

The Paducah campus would pair large-scale AI computing infrastructure with dedicated energy systems for its electricity needs. The DOE said on-site power generation would exceed the campus’s demand: a natural gas-fired power plant and battery energy storage would be capable of supplying 4.6 gigawatts of electricity, while the data campus would draw 1.8 gigawatts.

The project adds to the redevelopment of the former uranium enrichment site, where federal and state officials have spent years planning environmental cleanup, industrial redevelopment and transfers of parts of the reservation to private industry. The DOE said the site has available water infrastructure, fiber connectivity and land for large-scale AI infrastructure, aligning with its American Energy Hubs Initiative to turn former agency sites into affordable energy substations that can attract manufacturing, tech innovation and economic growth.

Energy Secretary Chris Wright said former DOE sites can become “engines of innovation and economic growth” with more tax revenue and thousands of jobs. In March, DOE said it would revitalize its Portsmouth, Ohio, uranium enrichment site into a 10-gigawatt power generation facility. Earlier this year, Kentucky officials announced General Matter’s plan to invest $1.5 billion in a new uranium enrichment facility at the Paducah site, while Global Laser Enrichment has proposed an advanced enrichment project.

Brookfield Corp., a Canadian alternative investment firm, was selected to develop and operate the Paducah data center campus after a bid selection process in November. NextEra Energy Inc. will build and own the dedicated energy infrastructure, Big Rivers Electric Power Corp. will provide wholesale electric service, and Jackson Purchase Energy Cooperative will provide retail service in Western Kentucky. Paducah Power System is also a community partner, but the power service agreement requires approval from state regulators. Construction is expected to be completed by 2031.