The US Department of Energy said on July 29 that it will redevelop part of its Paducah Site in Kentucky into a data center campus paired with new power generation, backed by more than $100 billion in private investment. DOE called it one of the largest investments in the state's history and said it expects the project to create about 8,000 construction jobs and 600 permanent jobs.
Who is building it
Following a Request for Offers DOE issued in November 2025, NextEra Energy was selected to build and own the dedicated power infrastructure for the site, while Brookfield will develop and operate the data center campus itself. Big Rivers Electric Power Corporation will provide wholesale electric service to the site, Jackson Purchase Energy Cooperative will handle retail electric service, and Paducah Power System will act as a community partner.
The power buildout
At or near the Paducah campus, NextEra plans to build 2 gigawatts of new grid-connected natural gas-fired generation, deploy up to 2.6 gigawatts of battery energy storage, and upgrade existing transmission lines. That capacity is meant to power a 1.8 gigawatt artificial intelligence and high-performance computing campus. DOE said the generation and storage capacity will exceed what the campus itself needs, so surplus electricity can flow to the regional grid. DOE tied that structure to President Trump's Ratepayer Protection Pledge, framing it as a way to add power supply without raising costs for households and businesses already on the grid.
Officials react
Energy Secretary Chris Wright said the project puts federal land to work adding power generation and jobs, calling it part of the effort to keep the United States ahead in AI infrastructure. Rep. Andy Barr, R-Ky., said he pressed Wright directly to help secure the commitment after hearing support from local and state officials, calling the $100 billion figure historic for Paducah and the state. DOE Assistant Secretary for Environmental Management Tim Walsh said the project fits the department's push to put former federal sites back into productive use while continuing environmental cleanup work already underway at Paducah.
Part of a wider push
DOE framed the Paducah deal as advancing its American Energy Hubs initiative, which is converting former DOE sites into locations for energy production, manufacturing and other development. The agency said the approach builds on a similar partnership model it announced earlier at its Portsmouth Site. DOE cited the Paducah Site's existing transmission capacity, water infrastructure, fiber connectivity and available land as reasons it was positioned to draw large-scale AI investment.
What is still pending
The power service agreement underpinning the project still needs Kentucky Public Service Commission approval, part of the regulatory approval process that must clear before NextEra's generation and storage plans can move forward. DOE said construction is expected to be complete in 2031.
