Brookfield and NextEra Energy are set to transform part of the former Paducah Gaseous Diffusion Plant in Kentucky into one of the nation’s largest AI data center campuses. With an anticipated investment that could reach approximately $100 billion, the project aims to deliver over 1.2 GW of compute capacity, supported by dedicated power generation on-site.
The announcement, made by the Paducah American Energy Hub coalition, indicates that Brookfield will be responsible for developing and operating the campus while NextEra will construct dedicated energy generation and storage facilities right next to the site. The initial concept calls for the establishment of up to 2 GW of natural gas generation combined with 2.6 GW of battery storage capacity, with future plans to support up to 1.8 GW of utility power by 2032.
The collaboration includes several local energy providers, including Big Rivers Electric Power Corporation and Jackson Purchase Energy Cooperative, which will facilitate wholesale and retail power services to the new campus.
This venture comes as the U.S. Department of Energy selected Brookfield in response to its request for proposals in November 2025 for leasing land and developing the Paducah site. NextEra was favored for being chosen to create and own the dedicated energy resources. However, the project still awaits final agreements and regulatory approval.
Brookfield CEO Bruce Flatt emphasized the importance of building critical infrastructure to foster innovation in the U.S. while benefiting local economies. NextEra’s Chairman, John Ketchum, stated that this initiative serves as a model for constructing AI capacity without imposing additional charges on existing power customers, aiming to create good-paying jobs for local communities.
One significant takeaway from this development is the trend of treating power generation as an intrinsic part of campus infrastructure, rather than relying solely on external utilities. Industry experts suggest that this model could pave the way for hyperscale data centers to independently handle their energy needs, significantly improving the efficiency of development timelines.
The Paducah site itself is particularly advantageous due to its access to transmission lines, water sources, fiber connectivity, and vast areas ready for development, potentially speeding up the construction process compared to new ground-up sites.
The coalition anticipates that the project will create around 8,000 construction jobs and 600 permanent operational positions. Energy Secretary Chris Wright indicated that the strategic planning and investment from NextEra and Brookfield could serve as a crucial roadmap for future infrastructures in the U.S., reaffirming the importance of executing projects without transferring costs to nearby communities.
Although specific AI customers for this venture and the exact start date for construction remain unidentified, the implications of the project signal a transformative approach to energy and infrastructure in the AI sector.
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