DOE, Private Partners Launch $100B Data Center Project in Kentucky

The United States Department of Energy (DOE) and a coalition of energy, infrastructure and utility companies have announced a gas-powered data center campus project at a former federal uranium enrichment site in Paducah, Kentucky.

A joint statement said the project would cost $100 billion, to be shouldered by the private partners.

"Once fully constructed in 2032, the campus will support up to 1.8 gigawatts (GW) of utility capacity and over 1.2 GW of compute capacity - backed by up to 4.6 GW of dedicated generation resources paid for and built specifically for the project, protecting customers from costs and fulfilling President Trump's Ratepayer Protection Pledge", the statement said.

Brookfield Corp will operate the campus. NextEra Energy Inc will build and own the electricity component, which will include up to two GW of gas generation and up to 2.6 GW of battery energy storage systems.

"Big Rivers Electric Power Corp will provide wholesale electric service, Jackson Purchase Energy Cooperative will deliver retail service and Paducah Power System will serve as a community supporter", the statement said.

It noted, "Due to the scale of its previous operations, the site is already equipped with transmission capacity, water infrastructure, fiber connectivity, roads and land ready to support a project of this magnitude. That existing infrastructure significantly accelerates timelines to begin work on the development".

"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", the department said.

Earlier this year DOE launched a similar public-private partnership with American Electric Power Co Inc (AEP) and a consortium led by Japan's Softbank Group Corp. The project involves building power generation including 9.2 GW from natural gas on DOE land to fully supply a 10-GW data center. The project is at the site of a former gaseous diffusion plant in Pike County, Ohio.

AEP will build a 765-kilovolt transmission infrastructure with $4.2 billion in commitment from Softbank's SB Energy, AEP said March 20.

"Initial transmission line route planning is underway and AEP Ohio is preparing to engage with community members and landowners to solicit feedback", AEP said.

The partnership is part of the U.S.-Japan Strategic Trade and Investment Agreement, which includes $33.3 billion in Japanese funding for 9.2 GW of new gas power capacity in the U.S., DOE said separately.

Concurrently SoftBank launched a consortium for the 9.2 GW gas portion, with potential participation from 21 funding partners in Japan and the U.S.

On Japan's side are Fujikura Ltd, Hitachi Ltd, Mitsubishi Electric Corp, Mizuho Bank Ltd, MUFG Bank Ltd, Murata Manufacturing Co Ltd, Panasonic Holdings Corp, SoftBank Group Corp, Sumitomo Electric Industries Ltd, Sumitomo Mitsui Banking Corp, TDK Corp and Toshiba Corp.

The prospective U.S. participants are Bechtel Global Corp, Carrier Global Corp, Citi, GE Vernova Inc, Goldman Sachs, JP Morgan, Kiewit Corp, Kinder Morgan Inc and Morgan Stanley.

On April 3, 2025 DOE announced a request for proposals for the potential development of data centers and associated infrastructure at 16 DOE-managed sites across the country.

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