A coalition of major energy and infrastructure companies has announced plans to transform a former U.S. Department of Energy nuclear enrichment facility in Paducah, Kentucky, into a large-scale data center campus backed by dedicated new power generation, in what officials are calling the largest economic investment in Kentucky's history.

A Former Atomic Site Reborn

The partnership, announced July 29, 2026, brings together NextEra Energy, Brookfield, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System to redevelop the DOE's Paducah Site in Western Kentucky.

The USD 100 billion privately funded project will repurpose land from the former uranium enrichment facility into a hub for data processing and energy generation.

Once a cornerstone of the nation's atomic energy program, the Paducah Site already possesses substantial infrastructure including transmission capacity, water infrastructure, fiber connectivity, and road access, all of which officials say will significantly accelerate development timelines.

DOE selected Brookfield to lease the land and develop and operate the data center campus following a Request for Offers issued in November 2025.

DOE separately selected NextEra Energy to build and own the dedicated generation resources that will power the campus.

Scale of the Project

When fully constructed in 2032, the campus is expected to support up to 1.8 gigawatts of utility capacity and over 1.2 gigawatts of compute capacity.

To meet that demand, NextEra Energy will build up to 4.6 gigawatts of dedicated generation resources, comprising up to 2 gigawatts of natural gas generation and up to 2.6 gigawatts of battery energy storage systems.

The company will add generation capacity in stages as the campus ramps up operations. The project is expected to create approximately 8,000 construction jobs and 600 full-time operations jobs in the region.

Ratepayer Protections at the Center of the Deal

A defining feature of the partnership is its structure around cost insulation for existing electricity customers.

The project is designed so that the data center campus finances its own power infrastructure, preventing additional costs from being passed on to residential and small-business ratepayers in the surrounding region.

The arrangement is described by partners as consistent with what the announcement refers to as President Trump's Ratepayer Protection Pledge.

John Ketchum, chairman, president and CEO of NextEra Energy, framed the model as a template for how artificial intelligence infrastructure should be developed nationally.

"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," Ketchum said.

"New jobs, new energy resources, a more reliable grid and not a dollar of added cost on an existing customer's electric bill." Bruce Flatt, CEO of Brookfield, described the Paducah Site as the starting point for the company's broader ambitions.

"The Department of Energy Paducah Site will be the seed of our plan to invest USD 100 billion in AI infrastructure, and we are proud to help unlock that potential through responsible investment and long-term stewardship," Flatt said.

Grid Reliability and Utility Roles

In addition to powering the campus itself, the new generation resources are intended to strengthen grid reliability across the broader region.

Big Rivers Electric Power Corporation will provide wholesale electric service to the project, while Jackson Purchase Energy Cooperative will deliver retail service.

Paducah Power System is participating as a community supporter.

The power service agreement between the campus and the two cooperatives will require additional oversight and approval from the Kentucky Public Service Commission.

Don Gulley, president and CEO of Big Rivers Electric Corporation, said the project would benefit cooperative members without jeopardizing affordability or reliability.

"Our members count on us to protect them from risk while planning boldly for the future," Gulley said. "We believe this project will provide significant benefits to our members without compromising the affordability or reliability of their electricity."

Federal Context and the American Energy Hubs Initiative

The Paducah development is part of DOE's broader American Energy Hubs initiative, which aims to repurpose legacy federal sites for energy and technology uses.

DOE Assistant Secretary for Environmental Management Tim Walsh cited the initiative's goal of returning federal land to productive use for American taxpayers.

"Our employees are working with urgency to transform legacy sites that played a key role in the prosperity and success of our nation, like Paducah, into hubs for energy and innovation that keep our nation secure and create new jobs and economic opportunities for the region," Walsh said. U.S.

Energy Secretary Chris Wright highlighted the project's potential as a model for future domestic infrastructure development.

"It's difficult to overestimate the importance of this project," Wright said. "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."

Documentation and Next Steps

The announcement noted that the project remains subject to the negotiation and execution of definitive documentation between all parties involved. Construction is expected to proceed in phases, with the campus reaching full capacity by 2032.