The U.S. Department of Energy (DOE) has 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.
The partnership will redevelop parts of Paducah Site into a data center campus, as well as build new affordable energy infrastructure. The privately funded investment, worth more than $100 billion, is one of the largest in Kentucky’s history and is expected to create approximately 8,000 construction jobs and 600 permanent jobs.
Increasing America’s domestic energy supply
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.
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.
“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, said U.S. Secretary of Energy Chris Wright.
“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 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.
The Paducah Site is uniquely positioned to support AI infrastructure
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 of 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.
