The US Department of Energy (DOE) has announced plans to transform part of its Paducah Site in western Kentucky into a data centre campus supported by new energy infrastructure, with investment expected to exceed $100bn.
The project is being undertaken in partnership with Brookfield, Big Rivers Electric Power Corporation, NextEra Energy, Jackson Purchase Energy Cooperative, and Paducah Power System.
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This redevelopment is expected to generate about 8,000 jobs during construction and 600 permanent jobs once operational.
Brookfield was selected to develop and operate the Paducah data centre campus following a DOE Request for Offers issued in November 2025.
NextEra Energy will construct and own the onsite energy infrastructure, while Big Rivers Electric Power Corporation and Jackson Purchase Energy Cooperative will provide wholesale and retail electricity services, respectively.
Paducah Power System will act as a community partner in the initiative. The proposed agreement for energy supply is subject to approval by the Kentucky Public Service Commission.
Completion of the data centre campus construction is targeted for 2031.
The Paducah project will include the development of 2GW of grid-connected natural gas-fired power generation, the upgrade of current transmission systems, and the deployment of up to 2.6GW of battery energy storage capacity.
This will support a 1.8GW artificial intelligence (AI) and high-performance computing campus, with the new generation and storage capacity designed to exceed the campus’s requirements.
The DOE states that excess electricity will be delivered to the regional grid, aiming to lower energy costs for local residents and businesses.
US Secretary of Energy Chris Wright said: “Thanks to President Trump, the US government is leveraging its assets—like our federal lands—to add power generation, create jobs, and ensure the US wins the AI race.
“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 revitalise communities with increased tax revenue and thousands of jobs, while also strengthening America’s energy security.”
The project forms part of the DOE’s American Energy Hubs initiative, which aims to convert former DOE sites into locations for energy production, technological innovation, and economic development.
