It is reported that NextEra Energy and Brookfield Asset Management are developing a large-scale energy complex combining natural gas-fired power generation with a hyperscale artificial intelligence (AI) data center at the site of a former uranium enrichment (gas diffusion) plant in Paducah, Kentucky. The total private investment is said to exceed $100 billion, with Phase 1 operations targeted to begin in 2028.
The project reportedly makes use of a site owned by the U.S. Department of Energy (DOE), located on approximately 600 acres of the former gas diffusion (uranium enrichment) plant in Paducah, Kentucky. According to reports, NextEra Energy will be responsible for constructing and owning the power generation assets, while Brookfield Asset Management will develop and operate the data center. Specific details such as the gas turbine model or manufacturer have not been disclosed.
The complex is expected to include 2GW (gigawatts) of natural gas-fired power generation, 2.6GW of battery storage, and a data center with an IT load of 1.8GW, according to reports. The total private investment is said to exceed $100 billion, with the project reportedly announced between July 29 and 30, 2026. The construction phase is expected to create approximately 8,000 jobs, with around 600 permanent positions once operations begin.
The site was previously used as a gas diffusion plant for uranium enrichment during the Cold War era, and the conversion of a former nuclear fuel production facility into power infrastructure linked to an AI data center is drawing attention, as it represents a case of a DOE-owned idle site being repurposed for large-scale private energy and data center investment.
As surging power demand driven by the expansion of the AI industry is leading to investment in large complexes combining gas turbine generation with battery storage, this project is viewed as an example of a broader trend toward combined development of power generation and data center facilities, a trend that could also affect order competition and supply chains for power generation equipment such as gas turbines.
Points to watch include how orders and construction schedules for key equipment such as gas turbines will take shape ahead of the targeted 2028 Phase 1 start, and whether similar combined projects utilizing idle government-owned sites will spread to other regions in the United States.