Officials address AI power cost concerns; Project includes dedicated power generation for data center - WPSD Local 6

PADUCAH — Following Wednesday's announcement of a $100 billion AI data center campus at the DOE Paducah Site, some residents expressed concerns about whether the project could affect their electric bill.

Project leaders said the center will not raise residents' bills, as it will be powered by new energy infrastructure built specifically for the project, rather than relying on existing resources.

"We're building energy infrastructure specifically designed for this data center campus,” John W. Ketchum, CEO of NextEra Energy, said. “Those costs will be borne by the project itself, not by anyone else here in western Kentucky ... It's a model that supports economic development while protecting existing customers."

The partnership includes:

- Brookfield, which will develop and operate the AI data center campus.

- NextEra Energy, which will build and own the new energy infrastructure.

- Big Rivers Electric Corporation, which will provide wholesale electric service.

- Jackson Purchase Energy Cooperative, which will provide retail electric service.

- Paducah Power System, which is serving as a community partner.

During Wednesday's announcement, U.S. Rep. Andy Barr said the project is expected to produce more electricity than the data center itself will require.

"The project will generate more electricity than it consumes, with excess power flowing back into the regional grid. This will help strengthen reliability and help reduce costs for Kentucky homes and businesses," Barr said.

"Because NextEra will actually generate more than they're going to supply to Brookfield, some of that will go back on the grid to help stabilize rates," said Jackson Purchase Energy Cooperative Vice President of Member Services and Communication Mark Lindsey. "As far as a dollar amount or a percentage, I don't have any of those specifics at this point."

According to a release from the DOE, the AI data center campus will require 1.8 gigawatts of energy; NextEra Energy plans to develop 2 GW of new grid-connected natural gas-fired generation and deploy up to 2.6 GW of battery energy storage.

“We believe in energy addition, and why not right here in western Kentucky? Incredible community with an incredible future,” Barr said.

The AI data center and battery storage facilities are expected to begin operating as early as 2028, while the natural gas generation component is expected to come online as early as 2032.