The U.S. Department of Energy has announced plans to convert the former Paducah Gaseous Diffusion Plant in Kentucky into a massive $100 billion AI data center and energy complex. The project will be led by Brookfield Asset Management, with NextEra Energy developing the supporting power infrastructure. The initiative is part of a broader effort to repurpose Cold War-era uranium enrichment sites into hubs for artificial intelligence and advanced computing while strengthening U.S. leadership in AI.
The proposed development will include a 1.8-gigawatt AI data center campus, powered by 2 gigawatts of natural gas-fired generation, upgraded transmission infrastructure, and 2.6 gigawatts of battery energy storage. Officials say the dedicated energy infrastructure is designed to meet the enormous electricity demands of AI workloads without placing additional strain on the regional power grid. Construction is expected to begin in phases, with the first facilities targeted to come online by 2028.
The project is expected to generate thousands of construction jobs, hundreds of permanent positions, and billions of dollars in economic activity for western Kentucky. Federal officials describe the redevelopment as part of a national strategy to transform former government-owned nuclear sites into centers for innovation, helping the United States compete globally in AI while making productive use of existing industrial infrastructure.
Despite the anticipated economic benefits, the proposal has drawn criticism from environmental organizations and local advocacy groups. Critics have raised concerns about increased reliance on natural gas, potential environmental impacts at the former uranium site, and the long-term implications of building energy-intensive AI infrastructure. Federal officials maintain that environmental cleanup of the Paducah site will continue alongside the redevelopment, with regulatory oversight remaining in place throughout the project.
