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University of Kentucky Central Utility Plant | Optimum Energy
Project Spotlight

University of Kentucky Central Utility Plant

Lexington, Kentucky

Optimum Energy is modernizing and optimizing the University of Kentucky’s four existing central plants as part of the Kentucky Infrastructure Partners team, while a new plant is built to support one of the nation’s largest university campuses.

$580M
Total project investment
2029
Targeted completion
~30 yrs
P3 operating term
P3
Public-private partnership
Optimum Energy’s Role

Specified by the University. Delivered by Optimum.

When the University of Kentucky set out to strengthen the infrastructure behind its growing healthcare, research, and academic campus, it named Optimum Energy as a required member of the project team. We joined Kentucky Infrastructure Partners, the Plenary-led group selected to deliver the partnership, and brought our work with us.

The University runs four existing central plants today. Optimum Energy is modernizing and optimizing all four so the campus runs more efficiently as demand grows. That work sits alongside the new plant rather than inside it: the Walsh-Turner design-build joint venture constructs the new plant, while Optimum focuses on the systems already keeping the campus running. The two scopes move in parallel, each focused on what it does best.

It is the kind of work that does not happen by accident. Being named by the owner says something about the reputation Optimum has built in central plant optimization.

What Optimum Energy is delivering in the four existing plants

  • Modernization and optimization across all four of the University’s existing central plants
  • Continuous, software-driven plant optimization with OptimumLOOP to cut energy use as campus demand grows
  • Ongoing remote performance monitoring and services to sustain results over time
  • A scope that runs in parallel with, and independent of, the new plant construction
Project Snapshot

A foundation for the University’s next decade

The Central Utility Plant project reached Financial Close on June 11, 2026, following Commercial Close on May 22, 2026, clearing the way for full construction. The new plant will expand heating, cooling, and backup power to support major campus growth, including the planned expansion of the UK Albert B. Chandler Hospital.

Total Investment
Approximately $580 million across design, construction, financing, and long-term operation
What It Delivers
A new central utility plant plus upgrades to the campus district energy distribution systems
Financing
Tax-exempt Senior Revenue Bonds (Series 2026A), approximately $424 million par, with sponsor equity and other sources
Construction
Approximately 35 months, with completion targeted in 2029
Operating Model
A long-term public-private partnership of roughly 30 years following construction
Why It Matters
Expanded, resilient utility capacity to support UK HealthCare, research, and academic growth
The Project Team

Experienced partners on a complex delivery

Optimum Energy is proud to deliver alongside a team of established infrastructure and energy partners assembled under Kentucky Infrastructure Partners.

Existing Plants
Optimum Energy
Modernization and optimization of the University’s four existing central plants
Developers
Plenary Americas & Walsh Investors
Development and long-term partnership lead
Design-Builder
Walsh-Turner DBJV
New central utility plant construction
Operations & Maintenance
NORESCO, LLC
Long-term operations and maintenance provider
In the News

Coverage of the announcement

The Financial Close milestone drew coverage across construction, facilities, and regional outlets. A selection is below.

More from Optimum Energy is on the way

An Optimum Energy press release and additional updates on this project are coming soon. Follow us on LinkedIn and check back here as we share our part of the story.

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