DOE Collaborates to Transform Paducah into State-of-the-Art Data Campus

The U.S. Department of Energy (DOE) has recently announced a groundbreaking collaboration with Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System to transform sections of the DOE’s Paducah Site into a cutting-edge data center campus.

This partnership aims to revamp portions of the Paducah Site into a state-of-the-art data center campus and construct new affordable energy infrastructure. This privately funded initiative, valued at over $100 billion, stands as one of Kentucky’s most significant investments and is projected to generate around 8,000 construction jobs and 600 permanent positions.

Boosting America’s domestic energy supply

NextEra Energy is set to develop 2 gigawatts (GW) of new grid-connected natural gas-fired generation in or around the Paducah campus. Additionally, they will enhance existing transmission infrastructure and implement 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.

The planned generation and storage capacity surpass the campus’s energy demands, enabling surplus electricity to be supplied to the regional grid, thereby aiding in lowering energy expenses.

“The President’s Ratepayer Protection Pledge ensures the construction of the necessary energy infrastructure to fuel the AI revolution while reducing electricity costs for American households and businesses,” stated U.S. Secretary of Energy Chris Wright.

“By converting former DOE sites into hubs of innovation and economic prosperity, we can rejuvenate communities with increased tax revenue and numerous job opportunities, all while bolstering America’s energy security.”

This project aligns with DOE’s American Energy Hubs initiative, which focuses on repurposing former DOE sites to drive affordable energy production, technological advancements, manufacturing growth, and economic development.

Building upon the collaborative model introduced at the Portsmouth Site, the Paducah partnership exemplifies how cooperation between federal, state, local entities, and the private sector can expedite investments while delivering enduring benefits to nearby communities.

The Paducah Site’s suitability for AI infrastructure

Equipped with existing transmission capacity, water systems, fiber connectivity, and ample land, the Paducah Site is ideally positioned to accommodate large-scale AI infrastructure and attract substantial private investments. Simultaneously, ongoing environmental cleanup efforts will progress, furthering the site’s long-term redevelopment.

“Our primary focus is on repurposing federal land for the benefit of the American population,” remarked DOE Assistant Secretary for Environmental Management Tim Walsh.

“This commitment lies at the core of our American Energy Hubs initiative, aimed at enhancing affordable energy, leading in AI innovations globally, bolstering local economies, and fulfilling our responsibility to restore and revitalize communities. Thanks to President Trump and Secretary Wright, we are instilling hope for the future by fortifying and securing our nation for years to come.”

Following the issuance of DOE’s Request for Offers in November 2025, Brookfield was chosen to develop and manage the Paducah data center campus, while NextEra Energy was designated to construct and own the dedicated energy infrastructure powering the site. Big Rivers Electric Power Corporation will supply wholesale electric service, Jackson Purchase Energy Cooperative will provide retail electric service, and Paducah Power System will serve as a community partner. Approval from the Kentucky Public Service Commission is pending for the power service agreement.

The anticipated completion date for construction is 2031.