The U.S. Department of Energy announced plans to convert portions of a retired Cold War-era federal site in Paducah, Kentucky, into a large-scale artificial intelligence data center campus. The project, valued at approximately $100 billion, includes the construction of 2 gigawatts of natural gas–fired power capacity integrated with 2.6 gigawatts of battery storage, aimed at supporting the substantial energy demands of AI infrastructure.
The Paducah site, spanning 3,556 acres, was formerly a uranium enrichment facility producing low-enriched uranium for military reactors and nuclear weapons until 2013. Owned by the federal government and undergoing long-term environmental cleanup, the location offers a unique opportunity to develop data center operations while reusing existing land assets. The new power generation is projected to exceed the campus's needs, allowing surplus electricity to be supplied to surrounding communities.
This initiative forms part of a broader federal strategy to repurpose Cold War–era complexes for data center development, as officials seek to bolster U.S. competitiveness in artificial intelligence. In March, the Energy Department revealed plans to transform a former uranium enrichment site in Piketon, Ohio, into a 10-gigawatt data center, partially funded through Japanese investment. Additionally, the National Nuclear Security Administration is collaborating with engineering firm Amentum to explore a 1-gigawatt data center at the Savannah River Site in South Carolina, potentially powered by a combination of natural gas and nuclear energy.
The Trump administration has emphasized the strategic importance of AI, framing these projects as critical to maintaining technological leadership over competitors such as China. However, the expansion of data centers faces increasing opposition at the local level, with residents often citing concerns about noise, pollution, and resource consumption. A recent poll found that nearly half of Americans would strongly oppose a data center in their communities. Data from the first quarter of the year indicates that at least 75 data center projects totaling $130 billion in investment were delayed or halted due to local resistance.
To address these challenges, the administration has pursued policies to facilitate construction on federal land, which can offer a more streamlined approval process. Separate actions include the Environmental Protection Agency’s relaxation of smog-related emissions limits on gas turbines frequently used in such facilities. The Interior Department also recently authorized the state’s first data center on federal land near Boulder City, Nevada, on a site previously approved for a utility-scale solar array, allowing it to bypass an additional environmental review. This decision has prompted legal challenges from environmental groups concerned about public input and ecosystem impacts.
Energy Secretary Chris Wright underscored the government’s intent to leverage federal assets for power generation and job creation while ensuring U.S. leadership in the AI sector. The Kentucky data center project is anticipated to be completed by 2031 and will be supported by a private partnership involving NextEra Energy, Brookfield Investment, and local utilities, without direct federal funding. The forthcoming developments reflect an ongoing effort to balance the nation’s technological ambitions with rising scrutiny over energy infrastructure and environmental considerations.