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US and South Korea back $22.3B natural gas and data center project in Texas

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US and South Korea back $22.3B natural gas and data center project in Texas
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The US Department of Commerce and the South Korean government have backed a $22.3 billion energy infrastructure project in Encinal, Texas. Jointly developed by NextEra Energy and Related Companies, the facility will produce 6.47 GW of gas power to support an adjacent 5 GW data center campus while feeding excess capacity to the state grid.

KOREA (SOUTH); UNITED STATES OF AMERICA —A joint enterprise between Related Companies and NextEra Energy Resources, alongside Lewis Energy Group, has secured strategic backing from the US Department of Commerce and the South Korean government to construct a $22.3 billion energy generation complex in Encinal, Texas. Known as Project Star, the facility will feature 6.47 GW of natural gas-fired capacity designed primarily to meet the intense power requirements of a contiguous 5 GW digital infrastructure park being developed by Related Digital. Excess electricity generated by the facility will be exported to the local electricity grid to reinforce regional supply reliability.

This initiative responds directly to heightening grid stability challenges brought about by the rapid growth of artificial intelligence and high-performance computing assets across Texas. By pairing large-scale digital hubs directly with dedicated on-site generation, energy developers can expand data infrastructure without increasing load pressures on public utility networks. The framework reflects bilateral economic coordination under the US-Korea Strategic Investment Agreement, leveraging Korean industrial capital and supply chains to build mission-critical energy assets in North America.

The integration of direct gas generation with massive computing facilities marks a decisive shift in how large technology ecosystems manage power procurement. As data centers scale into multi-gigawatt capacities, reliance on existing utility distribution networks faces severe transmission bottlenecks and regulatory hurdles. By securing dedicated fuel pipelines and upstream water access locally, off-grid or co-located power models offer a scalable blueprint for future digital infrastructure deployments across power-constrained regions.

NextEra Energy is a major North American energy infrastructure corporation operating extensive renewable, nuclear, and natural gas generation assets, including Florida Power & Light Company. Related Companies is an American real estate development firm managing a broad portfolio of commercial, residential, and digital infrastructure assets through its division Related Digital. Lewis Energy Group is an integrated South Texas energy producer specializing in natural gas exploration, midstream services, and field operations.

Initial power generation assets at the Encinal campus are expected to begin operations as early as 2029, pending final regulatory and environmental clearances. The development phase is anticipated to generate thousands of specialized engineering and construction roles, followed by permanent technical positions once fully operational.

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