$100 Billion AI and Energy Campus Announced in Western Kentucky

A coalition of energy and utility companies announced plans Wednesday to build the Paducah American Energy Hub, a $100 billion AI data center and energy campus on federal land in Western Kentucky – one of the largest private investments in Kentucky history.

The project will combine a large-scale AI data center with new energy infrastructure and is expected to create about 8,000 construction jobs and 600 permanent jobs.

The project brings together five energy, infrastructure, and utility partners to redevelop portions of the U.S. Department of Energy’s former Paducah Gaseous Diffusion Plant site.

Following a federal selection process, Brookfield was selected to develop and operate the data center, while NextEra Energy was selected to build the energy infrastructure. Big Rivers Electric 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.

In announcing the project, the U.S. Department of Energy noted that it follows the White House’s Ratepayer Protection Pledge, through which participating companies commit to covering the energy and infrastructure costs associated with their projects rather than passing those costs on to households and other utility customers. When complete, the campus is expected to include more power generation and storage than the site itself will use, allowing surplus power to be delivered to the regional grid.

The project is part of the Department of Energy’s American Energy Hubs initiative, which aims to redevelop former department sites into centers for energy production, advanced manufacturing, technological innovation, and economic development.

Kentucky Chamber President and CEO Ashli Watts released the following statement in response to the announcement:

“This is a transformative moment for Western Kentucky and an extraordinary opportunity for the Commonwealth. By expanding our energy infrastructure while protecting affordability and reliability, Kentucky is positioning itself to compete for the investment, technological innovation, and job creation that will have a generational impact on our economy.”

In a press release announcing the project, U.S. Energy Secretary Chris Wright said, “This new campus helps secure our nation’s position as a global leader in innovation. The planning and investment by NextEra Energy and Brookfield provides a crucial roadmap for future projects in the United States by revealing the ability to build world-leading infrastructure without passing costs on to surrounding communities.”

NextEra Energy Chairman, President, and CEO John Ketchum said: “This project is a proof point for how AI infrastructure should be built in America. The data center will bring its own power, pay for its own power infrastructure and create good-paying jobs for local workers — and in doing so, it will make the local communities stronger. New jobs, new energy resources, a more reliable grid and not a dollar of added cost on an existing customer’s electric bill.”

Big Rivers Electric Corporation President and CEO Don Gulley said: “Our members count on us to protect them from risk while planning boldly for the future. We believe this project will provide significant benefits to our members without compromising the affordability or reliability of their electricity. The infrastructure investments required for this project will strengthen reliability, open opportunities for new generation resources and position Western Kentucky as a technology leader.”

Construction will take place in phases, with the first portions of the project expected to begin operating as early as 2028.

Before the project can move forward, the power service agreement must be approved by the Kentucky Public Service Commission. The project is still in its early stages and remains subject to final negotiations, technical and environmental reviews, regulatory approvals, and final agreements among the project partners.