Energy Department Announces Partnership to Expand Reliable, Affordable Energy Access and Power America’s AI Future in Western Kentucky

WASHINGTON-The U.S. Department of Energy (DOE) today announced a landmark partnership with Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System to redevelop portions of DOE's Paducah Site into a data center campus accompanied by new affordable energy infrastructure. The more than $100 billion privately funded investment, one of the largest in Kentucky's history, is expected to create approximately 8,000 construction jobs and 600 permanent jobs.

Consistent with President Trump's Ratepayer Protection Pledge, the project's generation and storage capacity would exceed the campus's energy needs, allowing excess electricity to be delivered to the regional grid, helping reduce energy costs for American families and businesses. At or near the Paducah campus, NextEra Energy plans to develop 2 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. "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."

"The $100 billion private sector investment in Paducah is historic," said U.S. Congressman Andy Barr (R-KY). "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."

The project advances DOE's American Energy Hubs initiative, which is transforming former DOE sites into engines of affordable energy production, advanced manufacturing, technological innovation, and economic growth. Building on the partnership model announced at the Portsmouth Site, the Paducah partnership demonstrates how federal, state, local, and private-sector collaboration can accelerate investment while delivering lasting benefits to surrounding communities.

With existing transmission capacity, water infrastructure, fiber connectivity, and available land, the Paducah Site is uniquely positioned to support large-scale AI infrastructure and attract major private investment while continuing environmental cleanup and advancing the site's long-term redevelopment.

"We are intently focused on finding ways to put federal land back to productive use for the American people," said DOE Assistant Secretary for Environmental Management Tim Walsh. "That commitment is at the heart our American Energy Hubs initiative to increase affordable energy, lead the globe in AI innovations, grow local economies, and fulfill our obligation to restore and revitalize communities. Thanks to President Trump and Secretary Wright, we are giving Americans hope for the future by strengthening and securing our great nation for decades to come."

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.