Brookfield and NextEra Energy have announced plans to redevelop part of the US Department of Energy’s former Paducah Gaseous Diffusion Plant in Kentucky into a large-scale AI data center campus, targeting more than 1.2 GW of compute capacity. The companies say the total investment could reach roughly $100 billion over time.
The plan, unveiled by the Paducah American Energy Hub coalition, splits responsibilities between the two firms. Brookfield would develop and operate the data center campus, while NextEra would build dedicated generation and storage capacity adjacent to the site. Current plans call for up to 2 GW of natural gas generation and up to 2.6 GW of battery energy storage, with the partners saying the campus could support up to 1.8 GW of utility-delivered capacity by 2032.
The partnership also involves Big Rivers Electric Power Corporation, Jackson Purchase Energy Cooperative, and Paducah Power System. Under the proposed structure, Big Rivers would provide wholesale service, Jackson Purchase would handle retail service, and Paducah Power System would act as a community partner. The arrangement still requires approval from the Kentucky Public Service Commission, along with negotiation of definitive agreements.
DOE selected Brookfield following a November 2025 Request for Offers to lease land and develop the site, and separately picked NextEra to build and own the dedicated generation assets. Brookfield CEO Bruce Flatt called the Paducah site the starting point for the company’s broader $100 billion AI infrastructure plan. NextEra CEO John Ketchum described the project as a model for adding AI capacity without shifting grid upgrade costs onto existing utility customers.
Why the Site Matters
The former enrichment facility already has transmission access, water infrastructure, fiber connectivity, and large tracts of developable land, advantages that could speed up timelines compared to building on undeveloped land.
Reading the Fine Print
Industry analysts caution against simply adding up the announced generation figures. Neil Osnato of Persistence Analytics Group noted that battery storage capacity is not equivalent to continuously available generation, and that the real questions are how much firm capacity the campus can sustain under stress and how much support it will still need from the interconnected grid. He said bringing dedicated power is a meaningful step forward, but is not the same as bringing an independent grid.
Jobs and Local Impact
The coalition estimates approximately 8,000 construction jobs and 600 permanent operations positions. Energy Secretary Chris Wright called the project a potential blueprint for future AI infrastructure builds that avoid passing costs to surrounding communities. The announcement did not name an anchor AI customer or specify a construction start date.