The U.S. Department of Energy is transforming the Paducah Gaseous Diffusion Plant in Kentucky, a former Cold War-era uranium enrichment site, into a $100 billion artificial intelligence data center complex. The project, which includes a new natural gas and battery storage power plant, is being undertaken in partnership with investment firm Brookfield Asset Management.
This initiative aligns with national security and economic priorities to advance artificial intelligence capabilities. Energy Secretary Chris Wright stated that the former Department of Energy sites are being repurposed as "engines of innovation and economic growth" to ensure U.S. leadership in AI. He indicated that the project will bring significant investment and job creation to western Kentucky.
The Paducah plant, which ceased uranium enrichment in 2013, is undergoing extensive cleanup and decommissioning. The gaseous diffusion process used at the site is now considered obsolete. The Department of Energy anticipates the site's cleanup will be completed around 2065 at an estimated cost of $17 billion.
Brookfield Asset Management, which has over $1 trillion in assets under management, will develop and operate the data center. NextEra Energy will construct and own the power plant, which will feature 2 gigawatts of natural gas-fired generation, transmission network upgrades, and 2.6 gigawatts of battery energy storage to support the 1.8 gigawatt AI data center campus. According to industry standards, one gigawatt can power approximately 750,000 homes.
A similar project is underway at the Portsmouth Gaseous Diffusion Plant in Ohio. Earlier in July, the Department of Energy also announced a plan to negotiate a lease with engineering contractor Amentum for an AI data center and on-site power plant at the Savannah River Site in South Carolina.
Construction for the Paducah data center complex is expected to be finished by 2031. A power service agreement requires approval from state utility regulators, and any excess electricity generated will be supplied to the regional grid. The public-private partnership aims to continue environmental remediation efforts at the approximately 3,550-acre Paducah site, which was identified last year as a potential location for technology companies to establish data management and storage capacity.