The Trump administration is actively repurposing federal lands to host large artificial intelligence (AI) data centers and associated power generation facilities. The U.S. Department of Energy announced another such project on July 29, 2026.
The project involves a former Cold War-era uranium enrichment plant in Paducah, Kentucky. The federal land, which has been undergoing environmental cleanup for years, will become the site for an AI data center campus.
The $100 billion project includes the construction of 2 gigawatts of gas-fired power plants connected to the local grid and 2.6 gigawatts of battery energy storage systems. Funding is coming from private sources through partnerships with NextEra Energy, investment firm Brookfield, and local utilities.
Energy Secretary Chris Wright emphasized, "The U.S. government is using its assets, such as federal lands, to add power generation, create jobs, and ensure America wins the AI race."
This is the third such project under the current administration. In March, the repurposing of a former nuclear facility in Pikeville, Ohio, into a 10-gigawatt data center, primarily powered by gas and partially funded by Japan, was announced. In July, the National Nuclear Security Administration announced plans for a 1-gigawatt data center at the Savannah River Site in South Carolina, with potential for gas and nuclear power in partnership with Amentum.
Authorities aim to accelerate AI development and overcome growing local resistance to such facilities. Transferring federal lands allows them to bypass some bureaucratic and public hurdles.
