Another data center project is coming to Kentucky. What to know

A long-idle Century Aluminum smelter in Hancock County will be redeveloped into a data center campus, the company said Feb. 2, announcing the sale of more than 700 acres of industrial land along the Ohio River.

Century halted production at the smelter in 2022, citing “skyrocketing energy costs,” and originally said the curtailment would last only nine to 12 months. More than 600 people worked at the plant, and many received notices of temporary layoff at the time. Century continues to operate a smelter in Henderson County, near Sebree.

Century will receive $200 million and retain a small equity stake in the company developing the data center project, according to federal filings. The aluminum company had hinted at its search for a buyer for the Hancock County property in previous earnings calls, pointing to the site’s preexisting access to utilities and infrastructure.

“We are very pleased to see the Hawesville site transition to productive use that will benefit Hawesville and the entire Commonwealth of Kentucky,” said Jesse Gary, president and CEO of Century Aluminum. “Our agreement allows us to remain connected to the project and supportive of the community as the site is redeveloped.”

Maryland-based TeraWulf will develop the site, according to Century, building “a digital infrastructure campus supporting high-performance computing and artificial intelligence workloads.”

The project “is expected to create substantial new jobs, both construction and permanent skilled positions, and generate long-term economic activity for the region,” the company added.

Data center projects across Kentucky have faced steep public opposition, in part due to their relatively small employment levels compared to projects for manufacturing and other industries. Opponents have also cited concerns about energy use, infrastructure strain, tax breaks and environmental impacts.

Lane Boldman, executive director of the Kentucky Conservation Committee, said she’d spoken with local residents and officials last year who were still holding out hope that Century would restart the smelter.

The land sale and redevelopment plans come just days after Century announced plans to invest in a new, multibillion-dollar smelter in Oklahoma, rather than build out a project in Kentucky, as the company had previously floated. Gov. Andy Beshear and other proponents of the project, including Boldman, expressed disappointment that Kentucky was passed over for that investment, which would have brought 1,000 permanent jobs to the state.

This is a developing story and may be updated.

Connor Giffin is an environmental reporter at The Courier Journal. Reach him directly at cgiffin@courier-journal.com or on X @byconnorgiffin.