{"id":49077,"topic":"ai","source":"GovTech","title":"Paducah, Ky., Lands $100B Data Center Project - GovTech","url":"https://www.govtech.com/artificial-intelligence/paducah-ky-lands-100b-data-center-project","url_hash":"bcd1a89daddc57087c55538099a00d30d743b09a","author":"","summary":"Paducah, Ky., Lands $100B Data Center Project GovTech","content":"Federal officials said the project, backed by a consortium of investment firms, data center brokers and local utilities, would create roughly 8,000 construction jobs and 600 permanent positions while pairing the sprawling data center campus with new energy infrastructure designed to power its massive electricity demands.\nThe announcement positions Western Kentucky at the center of the nation’s race to build the computing infrastructure needed for AI, while highlighting the growing role of former industrial and federal sites in meeting soaring demand for data centers.\nIt also reflects a broader strategy by the Trump administration to accelerate AI development by coupling large-scale computing facilities with dedicated power generation, an approach supporters say will bolster economic growth and grid reliability but that has drawn scrutiny over its environmental impacts and enormous electricity needs.\n“The $100 billion private-sector investment in Paducah is historic,” said Republican Kentucky Congressman Andy Barr in a statement. “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.”\nOn-site power generation would exceed the data center campus’s energy needs, the DOE said Thursday in a news release. A natural gas-fired power plant, plus battery energy storage would be capable of supplying 4.6 gigawatts of electricity. The data campus would draw 1.8 gigawatts, officials said.\nThe proposal would add a major new chapter to the ongoing redevelopment of the former Paducah Gaseous Diffusion Plant, where federal and state officials have spent years planning for the site’s transition from its Cold War-era uranium enrichment mission through environmental cleanup, industrial redevelopment and the eventual transfer of portions of the reservation to private industry.\nThe site is “uniquely positioned” with available water infrastructure, fiber connectivity and land to support large-scale AI infrastructure and attract major private investment, advancing DOE’s American Energy Hubs Initiative to turn former agency sites into affordable energy substations that can attract manufacturing, tech innovation and economic growth.\n“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,” U.S. Secretary of Energy Chris Wright said in a statement.\nIn March, DOE said it would revitalize its Portsmouth, Ohio, uranium enrichment site into a 10-gigawatt power generation facility.\nEarlier this year, state officials announced plans for General Matter to invest $1.5 billion in a new uranium enrichment facility at the site to produce fuel for commercial and next-generation nuclear reactors, while another company, Global Laser Enrichment, has proposed its own advanced enrichment project. Together, the developments signal a dramatic transformation of the reservation from a legacy nuclear site into a hub for advanced energy production, nuclear fuel manufacturing and artificial intelligence infrastructure.\nCanadian alternative investment firm Brookfield Corp. was selected to develop and operate the Paducah data center campus, following a bid selection process in November. NextEra Energy Inc. will build and own the dedicated energy infrastructure to power the site, the DOE said.\nOwensboro’s Big Rivers Electric Power Corp. will provide wholesale electric service, and Jackson Purchase Energy Cooperative will provide retail service directly to customers in Western Kentucky. Paducah Power System is another community partner, but the power service agreement must get approval from state regulators.\nConstruction is expected to be completed by 2031, officials said.\n© 2026 Lexington Herald-Leader. 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