NextEra and Brookfield Are Building a $100 Billion Data Center Campus in Kentucky. Here's What Investors Need to Know.

NextEra Energy (NYSE:NEE), Brookfield Corporation (NYSE:BN), and three smaller power companies are building a massive AI data center campus in Kentucky. The $100 billion project, which will include power generation and compute capacity, is the largest economic investment in Kentucky’s history, and one of the biggest data center projects in the country.

Here’s a look at what investors need to know about this enormous innovation and energy hub.

Image source: The Motley Fool.

An ideal partnership

This partnership brings together two of the biggest players in energy and infrastructure. NextEra Energy is the country’s largest electric utility and a leader in developing clean energy infrastructure. Meanwhile, Brookfield is a leading global investment firm with over $1 trillion in assets under management across energy, infrastructure, private equity, real estate, and credit.

NextEra Energy will build and own the dedicated generation resources to power the campus. It plans to construct up to 2 gigawatts (GW) of natural gas-fired power generation and up to 2.6 GW of battery storage systems. It will add the power generation in stages as the data center campus ramps up, matching the facilities' needs with new supply to protect local consumers.

Meanwhile, Brookfield will fund the development of a data center campus with more than 1.2 GW of compute capacity. It aims to have the project fully constructed by 2032. Brookfield will lease the land from the Department of Energy and repurpose the site of a former Cold War-era uranium-enrichment plant. That site is ideally suited for a large-scale redevelopment project given its existing on-site infrastructure.

What it means for investors

For NextEra, this project is part of its data center hub strategy. The utility is working on 30 potential hubs and expects that number to rise to 40 by year-end. Its base case is to deliver 15 GW by 2035, with an upside case of 30 GW or more. The base case is a driver of NextEra’s plan to grow adjusted earnings per share by more than 8% annually through 2035. This large-scale project helps support the base case while increasing the likelihood that it can achieve its upside case.

Meanwhile, this project will serve as the seed for Brookfield’s plan to invest $100 billion in AI infrastructure. The company launched its $100 billion AI infrastructure investment program last year by creating the Brookfield Artificial Intelligence Infrastructure Fund, backed by itself, Nvidia, and the Kuwait Investment Authority. Another seed investment in that fund is Brookfield’s now $25 billion framework agreement with Bloom Energy for behind-the-meter power solutions. AI infrastructure investments are a key driver of Brookfield’s plan to grow its earnings at a 25% compound annual rate over the next five years.

Executing their AI strategies

NextEra Energy and Brookfield are both investing heavily to support the build-out of crucial AI infrastructure. This project is a meaningful one to further both strategies. While a project of this size carries significant execution risk, both companies have excellent records of delivering large-scale projects on time and on budget. Their AI infrastructure investments make them two of the top ways to capitalize on the AI megatrend.

Matt DiLallo has positions in Brookfield Corporation and NextEra Energy and has the following options: short August 2026 $150 puts on Bloom Energy and short July 2026 $40 puts on Brookfield Corporation. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Corporation, NextEra Energy, and Nvidia. The Motley Fool has a disclosure policy.