Kentucky Infrastructure Partners (KIP) today announced that it has reached Financial Close on the University of Kentucky Central Utility Plant (CUP) Project, a transformative infrastructure investment that will support the University’s continued growth, including the expansion of its healthcare, 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, state-of-the-art central utility plant, along with significant upgrades to the University’s district energy distribution systems.
Financial Close follows Commercial Close achieved on May 22, 2026, and enables the project to move into full construction, with completion targeted in 2029.
Supporting the Future of the University of Kentucky
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.
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, ensuring long-term performance, reliability, and efficiency.
Project Scope
The project includes:
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Financing
The project is being financed through the issuance of tax-exempt Senior Revenue Bonds (Series 2026A), with an approximate par amount of $424 million, alongside sponsor equity and other funding sources forming part of the overall $580 million capital structure.
Looking Ahead
Construction is expected to take approximately 35 months, with expected completion in 2029. Once complete, the new Central Utility Plant will provide the capacity and resilience needed to serve the University’s growing campus and the healthcare needs of communities across Kentucky.1
