DOE Taps Former Kentucky Uranium Plant for $100B AI Data Center Complex
The Paducah Gaseous Diffusion Plant will host a 1.8-gigawatt AI campus powered by dedicated gas generation and battery storage, with completion targeted for 2031.
The U.S. Department of Energy announced a $100 billion partnership to transform the shuttered Paducah Gaseous Diffusion Plant in western Kentucky into one of the nation's largest AI data center complexes, pivoting a Cold War uranium enrichment site toward artificial intelligence infrastructure.
Private Partners Selected
Brookfield Asset Management will develop and operate the 1.8-gigawatt data center campus on the 3,550-acre site, which ceased uranium enrichment operations in 2013. NextEra Energy will build and own the dedicated power infrastructure: a 2-gigawatt natural gas plant paired with 2.6 gigawatts of battery storage.
The integrated power arrangement bypasses traditional grid constraints that have slowed AI data center deployment elsewhere. Construction is expected to reach completion by 2031.
Energy Secretary Chris Wright framed the investment as transformative for the region. "There will be a lot of new natural gas power plants, a large data center, thousands of jobs and tens of billions of dollars of investment in rural western Kentucky," Wright said.
Part of Broader DOE Strategy
Paducah is the first of three former uranium sites tapped for AI infrastructure under the DOE's initiative to convert obsolete Cold War facilities into "engines of innovation." Similar projects have been announced for the Portsmouth Gaseous Diffusion Plant in Ohio and the Savannah River Site in South Carolina.
The strategy addresses two challenges simultaneously: scaling U.S. AI compute capacity to compete with China, and funding environmental remediation of contaminated federal lands through private-public partnerships.
Cleanup Continues Alongside Development
The Paducah site requires extensive environmental remediation projected to cost $17 billion and continue until 2065, according to DOE estimates. The development plan integrates ongoing cleanup operations with new construction, leveraging the site's existing industrial infrastructure and remote location.
The 2-gigawatt natural gas plant and 2.6-gigawatt battery system will provide dedicated, reliable power to the data center without drawing from regional grids already strained by data center demand. Co-locating generation with compute has emerged as a preferred approach for hyperscale AI facilities requiring consistent, high-capacity electricity.
Economic Impact
The project represents one of the largest single-site infrastructure investments in Kentucky history. Beyond construction jobs, the complex will require ongoing technical staff for data center operations, power plant management, and environmental monitoring.
The Paducah facility enriched uranium for nuclear weapons and reactor fuel from 1952 until its 2013 closure. Its conversion to AI infrastructure completes a decades-long transition from weapons production to commercial technology, albeit one that relies on fossil fuel generation rather than the carbon-free power often associated with tech industry sustainability commitments.