Kentucky's former aluminium smelter and uranium plant find new role as AI data centres

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Former industrial sites across Kentucky, including an aluminium smelter, are being repurposed as hyperscale data centres as developers seek locations with existing high-capacity power infrastructure to support artificial intelligence (AI) projects. 

One of the most prominent examples is the former Century Aluminum smelter in Hancock County, which stopped production in 2022 after more than 50 years of operation because of high electricity costs. The closure resulted in the loss of more than 600 jobs, but the site's 482 MW grid connection capacity remained intact.

That existing power capacity has now attracted hyperscale data centre developer TeraWulf, which acquired the property earlier this year. The company plans to convert the former aluminium smelter into a 482 MW AI-focused data centre, which will be leased to artificial intelligence company Anthropic.

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Local officials said the availability of high-voltage transmission lines and other electrical infrastructure made the site attractive for data centre development. While the new project is expected to create around 200 permanent jobs, it will not fully replace the employment lost when aluminium production ended.

The former Century Aluminum site is part of a broader trend across Kentucky, where developers are targeting closed industrial facilities with large power connections. Other projects are being considered at former coal mines, the former AK Steel mill, industrial parks and other sites with existing transmission infrastructure.

The shift is also taking place at the former Paducah Gaseous Diffusion Plant, where the US Department of Energy plans to develop a 1.8 GW hyperscale data centre alongside natural gas-fired power plants. Paducah Mayor George Bray said, “When we enriched uranium there, all the infrastructure around that power is still available, plus, we’ve got tremendous water capacity out there.” 

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The facility once used more than 3 GW of electricity and 26 million gallons of water per day during uranium enrichment operations, leaving behind infrastructure capable of supporting large-scale energy-intensive projects.

Economic development agencies see the projects as an opportunity to reuse long-idle industrial assets, generate tax revenue and attract new investment without converting agricultural land into industrial sites.

Mike Baker, the director of the Hancock County Industrial Foundation, commented, “The tax revenue can be significant…can be a worthy use of that property.”  

However, some environmental groups and legal experts have raised concerns over the long-term impact of large data centres on electricity demand, energy infrastructure and utility costs as AI-related investments continue to grow.