Key facts
- The U.S. Department of Energy is converting the Paducah Gaseous Diffusion Plant in Kentucky into an AI data center complex.
- Brookfield Asset Management will develop and operate the data center, with an estimated $100 billion in spending.
- The project includes a new natural gas and battery storage power plant to be built by NextEra Energy.
- The new power plant will have 2 gigawatts of natural gas generation and 2.6 gigawatts of battery storage.
- Construction is expected to be completed by 2031.
- Environmental advocates have expressed concerns regarding water impact and greenhouse gas emissions.
The U.S. Department of Energy is repurposing a former uranium enrichment facility in Paducah, Kentucky, into a massive artificial intelligence data center complex, signaling a significant shift in the use of Cold War-era infrastructure. The initiative, backed by a $100 billion investment from Brookfield Asset Management, aims to leverage the growing demand for AI computing power and bolster U.S. technological competitiveness.
The Paducah Gaseous Diffusion Plant, which ceased uranium enrichment operations in 2013, will be transformed into a state-of-the-art data center campus. This project is part of a broader strategy by the Department of Energy to convert decommissioned nuclear sites into hubs for innovation and economic growth, with similar projects underway in Ohio and South Carolina. Energy Secretary Chris Wright emphasized that these sites will become "engines of innovation and economic growth" to ensure the U.S. leads in the AI race.
Brookfield Asset Management, a global investment firm with over $1 trillion in assets under management, will lead the development and operation of the data center. The firm estimates that 30% of the $100 billion investment will be dedicated to the construction of the data center and its power infrastructure, with the remainder allocated to essential equipment such as servers and semiconductor chips. Discussions are ongoing with commercial partners to secure tenants for the data center space.
Powering the complex will be a new, on-site power generation facility developed by Florida-based NextEra Energy. This facility will include 2 gigawatts of natural gas-fired generation and 2.6 gigawatts of battery energy storage, designed to support the 1.8 gigawatt AI data center. Once operational, the gas-fired plant is expected to be the largest in Kentucky. Excess electricity generated will be supplied to the regional grid, pending approval from state utility regulators. The department projects that construction will be finalized by 2031.
Despite the economic and technological ambitions, the project has drawn scrutiny from environmental advocates. Concerns have been raised about the potential impact of developing a contaminated site and withdrawing water from the underlying aquifer, especially given that millions downstream rely on the river for drinking water. Byron Gary, a senior attorney for the Kentucky Resources Council, highlighted the environmental implications of constructing a large gas-fired power plant, citing its contribution to greenhouse gas emissions. His organization also seeks assurances that ratepayers will not subsidize the power infrastructure and that environmental protection laws and permitting processes will be fully respected.