Storied site gains modern mission
Co-ops are key partners at the Paducah American Energy Hub
KNOWN FOR MORE THAN 60 YEARS as the home of uranium enrichment, the U.S. Department of Energy’s Paducah Gaseous Diffusion Plant site is being prepared for a new national mission. And Kentucky’s electric cooperatives are ready to play their part.
An announcement in late July unveiled plans for the Paducah American Energy Hub, a privately funded, $100 billion project that includes new natural-gas generation and battery storage designed to serve a 600-acre data center campus while also supporting the regional electric grid.
Electric cooperatives are key partners. Big Rivers Electric Corporation will provide wholesale electric service, while Jackson Purchase Energy Cooperative will deliver retail service.
“This has been in the making for over a decade,” JPEC President and CEO Greg Grissom told a crowd of local workers, elected leaders, industry representatives and electric co-op board members. “Almost every individual in this room had some piece of it. This is true collaboration, true community spirit and we all win.”
Wright speaks to workers, energy partners, local leaders and other stakeholders during the announcement of the Paducah American Energy Hub.
The scope of the project was underscored by the presence of U.S. Energy Secretary Chris Wright.
“We need to be able to build big things in America,” Wright said before walking through the crowd of the site’s workers, many wearing yellow safety vests and hard hats. “We need to be able to re-shore jobs and opportunity to American workers and American families. We need to lower costs so it’s easier for families to pay their bills. And along with that, as many mechanisms as possible to raise wages.”
The development is projected to create approximately 8,000 construction jobs and more than 600 permanent operations jobs. Data center and battery costs and risks on the large-load customer rather than existing homes, farms and businesses.
“At Big Rivers, we have three guiding principles when it comes to data center development,” says Don Gulley, president and CEO. “No.1, we want to make sure that we protect our member consumers. Those are the people out there on the end of the line. No. 2, we want to make sure that we add value back to our member owners. And No. 3, we want to ensure that there’s a long-term reliability solution.”
The site is already equipped with transmission capacity, water infrastructure, fiber connectivity, roads and adequate land.
Brookfield, one of the world’s largest investors in AI infrastructure, will build, finance and operate the data center. NextEra Energy Resources, the largest energy infrastructure builder in the U.S., will be responsible for building and supplying the energy infrastructure.
“Everyday Americans should not have to pay for it,” says NextEra Energy Chairman and CEO John Ketchum. “Large-load customers should bring their own solution. And that’s exactly what’s happening here in Paducah.”
“As a member-owned cooperative, our priority is always the people and communities we serve,” Grissom says. “Projects like this have the potential to bring meaningful economic development to our region while safeguarding the electricity our members depend on every day.”
