The Trump administration is repurposing federal lands across the country to host massive artificial intelligence (AI) data centers and dedicated power plants in its ongoing bid to win a global technology race with China – while bypassing mounting local and environmental opposition.
The strategy centers on a $100 billion public-private project announced Wednesday to convert a shuttered Cold War-era uranium enrichment site in Paducah, Ky., into a sweeping AI campus. Funded through a partnership with NextEra Energy, investment firm Brookfield Asset Management, and regional utilities, the federal site — which has undergone years of environmental cleanup — will feature a 2-gigawatt natural gas plant and 2.6 gigawatts of battery storage.
Administration officials say the gas plant will feed enough excess energy into the local grid to benefit surrounding communities while generating 8,000 construction jobs and 600 permanent roles.
“The U.S. government is leveraging its assets — like our federal lands — to add power generation, create jobs, and ensure the United States wins the A.I. race,” Energy Secretary Chris Wright said.
Similar federal land conversions are underway elsewhere, including a proposed 10-gigawatt facility at a nuclear enrichment site in Piketon, Ohio, and potential developments in South Carolina. However, the federal push is triggering intense backlash from local leaders, environmental groups, and residents who argue Washington, D.C., is trampling local sovereignty and climate goals.
In Nevada, the Bureau of Land Management (BLM) sparked a legal battle by approving the Townsite Data Center near Boulder City on 81 acres of public land previously slated for a solar array, which is believed to be the first data center authorized on BLM territory. Local officials and environmental organizations, including the Sierra Club and the Center for Biological Diversity, have filed formal appeals, arguing federal officials bypassed standard environmental reviews by repurposing an old solar permit.
“We’ve had no conversations, there’s been no chance for the community or for the city to provide any input,” Boulder City spokesperson Lisa LaPlante said, calling the federal placement unprecedented.
The push comes as tech companies race to build power-hungry infrastructure needed for advanced computing. To speed development, President Donald Trump has urged Congress to preempt state AI regulations and exempted certain off-grid data center power plants from the EPA’s Acid Rain Program. To address public anger over utility costs, the White House secured a voluntary industry pledge not to pass higher electricity prices onto consumers.
Critics dismiss the agreement. Jesse Lee, senior adviser at Climate Power, called the pledge an unreliable “pinky promise,” warning that pressuring tech firms toward fossil fuels will expose communities to toxic pollutants and drive up long-term energy costs.
With data center power demands skyrocketing, experts warn the administration’s reliance on natural gas over renewables threatens national climate targets. Yet with broad executive backing, federal land redevelopments are rapidly becoming the primary battleground between AI expansion and local environmental oversight.