LEXINGTON, KY — Kentucky Infrastructure Partners (KIP) announces that it has reached Financial Close on the University of Kentucky Central Utility Plant (CUP) Project, an infrastructure investment that will support the university’s continued growth, including the expansion of its health care, research, and academic facilities.
The project represents a total investment of approximately $580 million, and includes the design, construction, financing, operation, and maintenance of a new central utility plant, along with significant upgrades to the university’s district energy distribution systems.
Financial Close enables the project to move into full construction, with completion targeted in 2029.
The new Central Utility Plant will be a critical component of the university’s long-term campus infrastructure strategy. The project will deliver expanded heating, cooling, and backup power capacity to support major capital programs, including the expansion of the University of Kentucky Albert B. Chandler Hospital and other key facilities. The project includes:
- Construction of a new central utility plant providing steam and chilled water capacity
- Installation of new distribution piping and system connections across campus
- Modernization and optimization of existing utility systems to be performed by Optimum Energy
- Backup power infrastructure to enhance resiliency for critical health care operations
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Under a long-term public-private partnership (P3) agreement, KIP will design, build, finance, and operate the facility for approximately 30 years following construction completion. KIP brings together an experienced team of infrastructure and energy partners:
- Developers: Plenary Americas and Walsh Investors
- Design-Builder: Walsh-Turner DBJV (a joint venture between Walsh Construction Group and Turner Construction Company)
- Operations & Maintenance Provider: NORESCO LLC
“This project will provide the critical infrastructure needed to support the future expansion of the University of Kentucky Albert B. Chandler Hospital and the university's continued growth,” said David Opalka, Vice President, Construction Executive, Turner. “Reliable power and resilient utility services are essential to delivering health care, supporting research, and serving patients every day. We are proud to work alongside the University of Kentucky, Walsh, Plenary, and NORESCO to create the foundation that will support the university's health care, research, and educational mission.”
“This utilities infrastructure project is a critical first step in enabling the Chandler Hospital expansion, providing the essential foundation needed to support the next phase of growth across the University of Kentucky’s health care campus,” said Tom Caplis, Senior Vice President at The Walsh Group, representing Walsh Investors and Walsh-Turner Design-Build Joint Venture. “Work of this scale depends on strong partnerships, and we’re proud to collaborate with UK HealthCare and our project partners to establish the infrastructure that makes these transformative facilities possible.”
