UK advancing utilities infrastructure to support Chandler Hospital expansion, campus growth
LEXINGTON, Ky. (May 21, 2026) — At every hour of the day through every season, there is one resource for the Commonwealth that keeps running: UK HealthCare.
The University of Kentucky Albert B. Chandler Hospital is a place Kentuckians turn to when it matters most. Throughout the sprawling medical campus, some of the state’s most complicated cases and most prevalent health challenges are treated.
The need is great. Thousands of patients each year must be turned away because current facilities are at capacity.
Before expansion, critical infrastructure work must be done. UK is advancing a Utilities Infrastructure Public-Private Partnership (P3) to lay that important foundation.
“To serve the people across our Commonwealth, we must continue to grow,” said UK President Eli Capilouto. “The expansion of Chandler Hospital is essential to meeting the healthcare needs of our state. This project ensures we have the infrastructure in place to make that growth possible and to keep advancing Kentucky.”
This project has an estimated cost of $580 million and will deliver a new central utility plant, connected distribution system and optimize existing equipment to provide heating and cooling to a growing campus.
While this infrastructure is critical for expanding Chandler Hospital, it is equally important for the UK Markey Cancer Center and Advanced Ambulatory Building, the Michael D. Rankin MD Health Education Building, the Martin-Gatton Agricultural Sciences Building, the Agricultural Research Building and other major capital projects to better serve students, patients and the state.
“This is foundational work that often happens behind the scenes,” said Eric Monday, executive vice president for finance and administration and co-executive vice president for health affairs. “But it is critical to everything we do. Without it, we cannot expand Chandler Hospital or support the growth in care, education and research that serves communities across Kentucky.
UK is using a public-private partnership to deliver and operate this complex project in a coordinated way.
After a competitive process, UK chose Kentucky Infrastructure Partners — a group of partners with deep expertise in designing, building and operating utility infrastructure.
This approach allows UK to advance a comprehensive package of improvements while managing long-term performance and reliability, including:
- Modernization of our existing chilled water systems to use energy efficiently
- Backup generators for Chandler Hospital to improve reliability
- Additional utility piping to support the growth of new buildings on south campus
“This partnership helps us move faster and more effectively on a project of this scale,” said Craig Collins, senior vice president and chief financial officer of UK HealthCare. “It allows us to focus on our mission of advancing Kentucky while building the right partnerships to ensure these systems perform for decades to come — for the future of healthcare in Kentucky.”
The Utilities Infrastructure P3 was recently approved by the Kentucky Legislature’s Capital Projects and Bonds Oversight Committee. While UK and its partners are finalizing the agreement, any work on the project will happen in phases.
As with projects of this scale, traffic, parking and transit impacts should be expected in the surrounding area.
The campus community will first notice changes tied to distribution piping work, including lane shifts along University Drive between Cooper and Complex drives, starting as early as mid-June.
Beginning in mid-July, permit holders should expect impacts to University Drive Garage (PS #1) near Cooper Drive and University Drive. Detailed information on this impact will be shared soon.
UK Transportation Services will continue to manage these changes, provide regular updates and work to minimize disruptions and restore parking as construction progresses.
For the latest information and detailed impact notices, visit transportation.uky.edu and sign up for email updates.
As the state’s flagship, land-grant institution, the University of Kentucky exists to advance the Commonwealth. We do that by preparing the next generation of leaders — placing students at the heart of everything we do — and transforming the lives of Kentuckians through education, research and creative work, service and healthcare. We pride ourselves on being a catalyst for breakthroughs and a force for healing, a place where ingenuity unfolds. It's all made possible by our people — visionaries, disruptors and pioneers — who make up 200 academic programs, a $1.02 billion research and development enterprise and a world-class medical center, all on one campus.