Department of Energy in the U.S. chooses Paducah as location for future energy and artificial intelligence infrastructure project
In a significant development, the Gaseous Diffusion Plant in Paducah, one of the nation's largest former uranium enrichment facilities, is set for a major redevelopment. The U.S. startup General Matter has leased 100 acres of the site from the U.S. Department of Energy (DOE) and plans to build a state-of-the-art uranium enrichment plant worth $1.5 billion. This facility will produce High-Assay Low-Enriched Uranium (HALEU) fuel, essential for advanced nuclear reactors, including Small Modular Reactors (SMRs).
Construction is expected to commence in 2026, with enrichment operations slated for around 2034. The project is expected to create about 140 high-paying jobs and generate $71 million annually in economic benefits for the Paducah region.
The redevelopment aligns with national clean energy goals and advanced nuclear technologies, including SMRs. While the plant's role in uranium enrichment and advanced nuclear fuel supply may indirectly support industries like Artificial Intelligence (AI) by providing clean energy, there are currently no specific announced plans for AI data centers or SMR construction on-site.
The DOE's decision also includes the potential deployment of SMRs at the Gaseous Diffusion Plant. This move signals federal interest in Paducah's suitability for public-private energy partnerships. The interest extends beyond uranium enrichment, with the DOE also considering the site for potential AI data center development.
Senator Danny Carroll, R-Paducah, has led years of groundwork for this development. He believes that nuclear power, as a clean and sustainable source of baseload energy, provides an opportunity for an economic boom in Kentucky's communities. To ensure Kentucky is prepared for and leading the next generation of energy, Senate Joint Resolution 140 instructed regulators to prepare for nuclear siting in Kentucky.
Furthermore, the Kentucky Nuclear Energy Development Authority (KNEDA) was created by Senate Bill 198. The 2024-2026 state budget allocated a total of $40 million in quasi-endowment funds at the University of Kentucky for KNEDA and related research efforts. The University of Kentucky's Center for Applied Energy Research administers the Kentucky Nuclear Energy Development Authority.
The General Assembly's direction ensures Kentucky's regulatory framework is aligned with national developments in advanced nuclear technologies. Senate Bill 179 established a $10 million grant program to support early-stage nuclear energy projects. The Energy Planning and Inventory Commission, also supported by the endowment funds at the University of Kentucky, plays a crucial role in this process.
In conclusion, the redevelopment of the Gaseous Diffusion Plant in Paducah marks a significant step towards a cleaner, more sustainable energy future. The project's potential to produce HALEU fuel and support the deployment of SMRs positions Paducah as a hub for advanced nuclear technologies. While the site's role in AI data center development remains to be seen, its potential as a hub for scalable, carbon-free power is undeniable.
The redevelopment of the Gaseous Diffusion Plant in Paducah, a move aligned with national clean energy goals, is set to create about 140 high-paying jobs and generate $71 million annually in economic benefits for the region. This development, led by Senator Danny Carroll, reflects Kentucky's commitment to leading the next generation of energy, as demonstrated by Senate Joint Resolution 140 and Senate Bill 198 that established the Kentucky Nuclear Energy Development Authority. The potential deployment of Small Modular Reactors (SMRs) at the site highlights federal interest in Paducah's suitability for public-private energy partnerships, extending beyond uranium enrichment to areas like AI data center development.
