U.S DEPARTMENT OF ENERGY SELECTS PADUCAH FOR FUTURE ENERGY AND AI INFRASTRUCTURE SITE
Sen. Danny Carroll, Kentucky’s leader in nuclear energy policy, says designation affirms state’s growing national role
FRANKFORT, Ky. (July 25, 2025) — The U.S. Department of Energy has named Paducah’s Gaseous Diffusion Plant as one of four federally-owned sites selected for potential AI data center development and the clean energy infrastructure needed to power it.
The designation marks a significant opportunity for Kentucky and signals federal interest in Paducah’s suitability for public-private energy partnerships, including the potential deployment of small modular nuclear reactors (SMRs). It comes on the heels of years of groundwork led by Sen. Danny Carroll, R-Paducah.
“The Department of Energy’s decision to select Paducah as a strategic site for future energy and AI infrastructure is a strong affirmation of Kentucky’s emergence as a national leader in not just economic opportunity, but also energy policy,” Carroll said. “Advancing technology demands reliable energy, and I strongly believe nuclear energy is a critical part of the diverse portfolio that will be needed to meet future demands.”
According to DOE, PGDP is one of the nation’s largest former uranium enrichment facilities and is undergoing extensive preparation for future redevelopment. The sprawling federal site has long served as a strategic energy asset. It now stands poised for a second life as a hub for advanced energy research and AI infrastructure. While the DOE has not committed funding or identified specific energy sources, the announcement opens the door to projects that require scalable, carbon-free power, something Carroll has long positioned Kentucky to support.
“As the sponsor of legislation that created the Kentucky Nuclear Energy Development Authority, I’ve worked to ensure the commonwealth is not just prepared for the next generation of energy, but leading it,” he said.
Carroll’s nuclear policy leadership began in 2017 with legislation to lift Kentucky’s moratorium on nuclear development. Since then, he’s led the passage of several key measures, including Senate Bill 198, which created the Kentucky Nuclear Energy Development Authority (KNEDA); Senate Joint Resolution 140, which instructed regulators to prepare for nuclear siting; and Senate Bill 179, which established a $10 million grant program to support early-stage nuclear energy projects.
To support this work, the 2024–2026 state budget allocated a total of $40 million in quasi-endowment funds at the University of Kentucky to fund KNEDA and related research efforts. The interest earned from the endowment supports operations at the Center for Applied Energy Research, including administration of the Kentucky Nuclear Energy Development Authority and the Energy Planning and Inventory Commission. Additionally, through Senate Joint Resolution 140, the General Assembly directed the Public Service Commission to prepare its staff, procedures, and regulations for future applications related to nuclear energy facility siting and construction, ensuring Kentucky’s regulatory framework is aligned with national developments in advanced nuclear technologies.
“Paducah’s potential as a nuclear and innovation hub is clearer than ever,” Carroll said. “We have the people, the partnerships, and the bipartisan momentum to turn this designation into something transformative for our economy.”
In 2024, Carroll joined energy leaders from 10 southern states for a CSG South policy masterclass in Ontario, Canada, where he toured the Darlington Nuclear Station—home to North America’s first operational SMR project. He also serves on the NCSL Nuclear Legislative Working Group and shares Kentucky’s approach with lawmakers nationwide.
“Nuclear power is not only a clean and sustainable source of baseload energy; it also provides an opportunity for an economic boom in our communities,” Carroll said. “We don’t have to choose between our coal heritage and nuclear innovation. We can honor the past while building the future. That’s exactly what we’re doing.”
###
Sen. Danny Carroll, R-Paducah, represents the 2nd Senate District, including Ballard, Carlisle, Livingston, Marshall, and McCracken Counties. He serves as co-chair of the Interim Joint Committee on Families and Children and is a member of the Interim Joint Committees on Education; Judiciary; and Health Services. He serves on the Legislative Oversight and Investigations Committee and is a non-voting ex officio member of the Juvenile Justice Oversight Council. Carroll is also a member of the Medicaid Oversight and Advisory Board. He is also a member of the Governor’s Early Childhood Education Advisory Council and the Child Fatality and Near Fatality Review Panel. Finally, he serves on the National Conference of State Legislatures’ Nuclear Legislative Working Group.