Growing demand for artificial intelligence infrastructure is driving large-scale investments in energy generation and data center development across the United States. The U.S. Department of Energy (DOE) has announced a partnership to redevelop portions of its Paducah Site in Kentucky into a data center campus supported by new power infrastructure through a privately funded investment exceeding $100 billion.
The initiative brings together Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative and Paducah Power System to transform the former federal site into a combined AI computing and energy production hub.
The redevelopment plan includes a 1.8-gigawatt artificial intelligence and high-performance computing campus supported by new utility infrastructure.
NextEra Energy plans to develop approximately 2 gigawatts of grid-connected natural gas-fired generation, modernize transmission infrastructure and deploy up to 2.6 gigawatts of battery energy storage. According to DOE, the planned generation and storage capacity will exceed the campus's electricity demand, allowing surplus power to be supplied to the regional electric grid.
Brookfield was selected to develop and operate the data center campus following DOE's Request for Offers process launched in late 2025. Big Rivers Electric Power Corporation will provide wholesale electric service, Jackson Purchase Energy Cooperative will supply retail electric service, and Paducah Power System will participate as a community partner. The power service agreement remains subject to approval by the Kentucky Public Service Commission.
DOE estimates the development will generate approximately 8,000 construction jobs during the buildout and around 600 permanent positions after completion.
The project forms part of DOE's American Energy Hubs initiative, which focuses on redeveloping former federal sites for energy production, advanced manufacturing and technology-related investments. Existing transmission infrastructure, water resources, fiber connectivity and available land at the Paducah Site were identified as key factors supporting the redevelopment.
Construction is expected to be completed in 2031.
For construction owners, contractors and infrastructure developers, the Paducah redevelopment represents one of the largest announced U.S. investments combining data center construction with utility-scale energy infrastructure. The project highlights growing demand for integrated delivery of power generation, transmission upgrades, battery storage and advanced computing facilities as AI-related development accelerates nationwide.
Source: U.S. Department Of Energy.
