Kentucky Infrastructure Partners Achieves Financial Close on University of Kentucky Central Utility Plant Project
Westborough, MA
June 15, 2026
Kentucky Infrastructure Partners (KIP) announced 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.
“This milestone reflects the strength of the strong partnerships we have built to support the University of Kentucky’s future and our mission to advance Kentucky. By working with experienced partners, we can take on complex, transformational work that will strengthen our infrastructure, expand care in UK HealthCare and better serve the people of Kentucky for generations to come,” said UK President Eli Capilouto.
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’s 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.
“NORESCO is proud to serve as the operations and maintenance provider for the University of Kentucky’s new Central Utility Plant,” stated Troy Walters, President and CEO of NORESCO. “Partnering with Kentucky Infrastructure Partners and UK, we are committed to driving reliability and efficiency. Our hands-on involvement during design and construction will ensure the plant is optimized for peak performance and long-term operational excellence. With our district energy expertise and collaborative approach, this vital infrastructure will deliver resilient, top-tier service for years to come, supporting UK’s continued growth in healthcare, research, and academics.”
Project Scope
The project includes:
Project Team
The KIP team brings together a highly experienced team of infrastructure and energy partners:
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.
“Reaching Financial Close represents a major milestone for Kentucky Infrastructure Partners and our partners at the University of Kentucky,” said Alex Barrett, Vice President at Plenary Americas. “We are proud to deliver essential infrastructure that will enable the University to expand its world-class healthcare, education, and research mission. Through this partnership, we are bringing together proven expertise to ensure this critical system performs for decades to come.”
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.
About NORESCO
NORESCO, a part of Carrier Global Corporation, helps customers modernize aging building systems and upgrade energy and water infrastructure to meet evolving demands. We implement innovative energy efficiency, distributed generation, energy storage, and renewable energy solutions that optimize the operational efficiency and improve resilience of buildings, campuses, military installations, and communities. To date, NORESCO has implemented solutions that provide more than $5 billion in guaranteed energy and operating cost savings at more than 10,000 facilities, while reducing customer CO2 emissions by more than 25 million metric tons – the equivalent of planting 1.4 million acres of forest. For more information, visit www.noresco.com