A $12bn data center campus has been proposed by developer Rubix on former steel site near Ashland, Kentucky. The firm is eyeing the site for what is being deemed to be the largest data center project in the state. The developer, Rubix Data Centers, plans to build a campus on about 450 acres at the former AK Steel site near Ashland and Russell. Furthermore, it will have a power capacity of up to 2 gigawatts, enough electricity to power more than 1 million homes.

Conversely, this is roughly the entire nameplate capacity of Kentucky’s largest power plant. Additional investment in the computing infrastructure of the project could account for tens of billions of dollars more, the company said. However, the project seems likely to face development obstacles. In June, the city council of nearby Russell approved a 180-day moratorium on data center applications as officials work to learn more about the projects.

Despite data centers having setbacks, many such as Temple data center by Meta are also advancing. The facility, which broke ground in 2022 and underwent a redesign and construction restart in 2023, is now operational. The campus spans more than 760,000 square feet across two buildings. It also represents an investment of more than $1.2 billion once completed. Meta officials said the project supported more than 1,200 skilled trade workers on site at peak construction.

Likely Challenges on the Rubix Data Center Campus in Kentucky

The Rubix data center campus in Kentucky is likely to also face the challenge of public opposition, a major deterrent in the industry. Data center proposals across Kentucky have generally faced fierce opposition from the public. This often comes amid concerns about environmental impact, infrastructure strain and utility costs. Rubix is owned by the Spain-based Submer Group, a firm focused on the infrastructure for artificial intelligence.

The firm estimated its project would bring about $40 million in annual tax revenue to local jurisdictions. Fewer than 4,000 people live in Russell, a small town on a stretch of the Ohio River that has wrestled with an exodus of manufacturing jobs in recent decades. Furthermore, it aims to train and employ local people to fill jobs, both in construction and permanent operational roles.

Once online, the data center would likely remain in operation for decades. The project’s electricity would be served by Kentucky Power Co. The client company also said the project would involve installation of backup diesel generators, but did not say how many. Diesel emissions are harmful to human health, and have spurred concerns in other communities with data center proposals.

Project Overview

• Project Value: $12B
• Location: Near Ashland, Kentucky
• Developer: Rubix Data Centers
• Status: Proposed

Scope

• 450-acre data center campus
• Former AK Steel site
• Up to 2GW power capacity
• AI-focused digital infrastructure

Project Highlights

• Largest proposed data center in Kentucky
• Tens of billions in future expansion possible
• Reuse of former industrial land
• Long-term operating facility

Economic Impact

• Estimated $40M annual tax revenue
• Construction and permanent jobs
• Local workforce training planned
• Supports regional redevelopment

Key Challenges

• Local data center moratorium
• Potential public opposition
• Environmental concerns
• Backup diesel generator emissions

Outlook

• Project remains in early planning
• Regulatory approvals still needed
• Community engagement expected to continue
• Could transform eastern Kentucky’s digital economy