The power service partnership agreement has yet to be approved by the Kentucky Public Service Commission, according to the DOE.
U.S. Department of Energy announces $100 billion data center investment coming to Paducah in 2031
PADUCHAH, Ky. (ABC 36 NEWS NOW via LEX NEWS) — On Wednesday, the U.S. Department of Energy and Kentucky Attorney General Russell Coleman announced that western Kentucky will be the new home to a $100 billion data center, developed by leaders at Brookfield, NextEra Energy, Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System.
In a YouTube video posted on Wednesday, Coleman congratulated the City of Paducah for the new development, and confirmed it will be developed at the campus of Paducah’s former gaseous diffusion plant.
The data center will host its own energy source, according to Coleman, meaning the center won’t directly raise utility costs for nearby residents.
“I’m grateful for the leadership from the Trump Administration and from our national partners, and I’m especially grateful to the local leaders at Big Rivers Electric, Jackson Purchase Energy and from the Paducah community,” Coleman said.
According to a press release by the U.S. Department of Energy (DOE), the $100 billion investment intends to be privately funded, one of the largest data centers in Kentucky, and will create 8,000 construction jobs and 600 permanent jobs.
“Thanks to President Trump, the U.S. government is leveraging its assets—like our federal lands—to add power generation, create jobs, and ensure the United States wins the AI race. The President’s Ratepayer Protection Pledge ensures America can build the energy infrastructure needed to power the AI revolution while lowering electricity costs for American families and businesses.
“By transforming former DOE sites into engines of innovation and economic growth, we can revitalize communities with increased tax revenue and thousands of jobs, while also strengthening America’s energy security,” said U.S. Secretary of Energy Chris Wright.
Kentucky Congressional Representative Andy Barr also commented on the data center, saying he hopes the new investment will create jobs and strengthen Kentucky’s energy security.
“The $100 billion private sector investment in Paducah is historic. I’m grateful to Secretary Wright for his leadership and partnership in securing a long-term commitment from the federal government to back this project. After speaking with local and state officials who were strongly supportive of this investment, I personally advocated with the Secretary to help make the project happen.
“Together with our private sector partners, this investment will create jobs, strengthen our energy security, and deliver lasting economic growth for Paducah and the Commonwealth for decades to come,” said Barr.
Construction for the project is set to be completed in 2031.
According to the DOE, the data center development will be a collaboration between several energy partners. Brookfield was selected in Nov. 2025 to develop and operate the data center campus. NextEra Energy was selected to build and own the data center. Big Rivers Electric Power Corporation will provide wholesale electric service to the data center, and Jackson Purchase Energy Cooperative will provide retail electric service to the data center. Paducah Power System is set to serve as a community partner.
