South Korea, U.S. Unveil $22.3 Billion Texas Power Project for AI Data Centers

South Korea and the United States have selected a $22.3 billion natural gas power project in South Texas as the first project under their strategic investment agreement, with the facility designed to directly supply electricity to artificial intelligence data centers in Encinal.

Known as Project Star, the 6,472-megawatt combined-cycle power plant will be developed by a joint venture between Related Companies and NextEra Energy Resources, with Lewis Energy Group providing the site and associated natural gas and water infrastructure.

The first phase is expected to begin commercial operations in 2029, with the full facility targeted for operation by 2032. The project is designed to supply power directly to an adjacent data center campus while sending excess generation to the grid.

The project is part of a broader Korea-U.S. strategic investment plan announced after the countries' trade agreement. The two governments also announced a framework for developing eight large nuclear reactors in the United States, while Alaska LNG remains under review.

Project Star is expected to expand opportunities for Korean companies to supply equipment, engineering and construction services, and long-term operations and maintenance. The U.S. also intends to provide Korean companies opportunities to supply equipment, including turbines, for similar U.S. projects.

For Texas, the project adds another major power-generation development aimed at rapidly growing electricity demand from data centers. The adjacent digital infrastructure campus is planned for up to 5 gigawatts of capacity.