AI data center coming to Western Kentucky - WBKO

PADUCAH, Ky. (WBKO) - A landmark partnership and a major billion dollar investment have helped secure plans for an AI data center in Kentucky.

The U.S. Department of Energy (DOE) made the announcement today. According to the media release, a partnership with Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System will redevelop portions of DOE’s Paducah Site into a data center campus accompanied by new affordable energy infrastructure.

The development of the data center was secured from a more than $100 billion privately funded investment, one of the largest in Kentucky’s history. The center is expected to create approximately 8,000 construction jobs and 600 permanent jobs, per the release.

“The $100 billion private sector investment in Paducah is historic,” said Kentucky U.S. Congressman Andy Barr, in a release. “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.”

PADUCAH CAMPUS

Per the media release, Consistent with President Donald Trump’s Ratepayer Protection Pledge, the project’s generation and storage capacity would exceed the campus’s energy needs.

This will allow excess electricity to be delivered to the regional grid and help reduce energy costs for American families and businesses.

At or near the Paducah campus, NextEra Energy plans to develop two 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, in a media release. “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.”

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.

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