U.S.–Korea energy push centers on $22.3B TX project

A new cross-border energy initiative is taking clearer shape around a flagship natural gas development in Texas. U.S. and South Korean officials have highlighted a package of U.S. energy infrastructure projects that includes a large power facility in Texas and expanded cooperation in nuclear energy. Discussions also covered other potential investments in U.S. energy supply chains, with timelines and project-level commitments expected to roll out over several years.

Within this broader package, the Texas natural gas project has emerged as an early, concrete anchor. It is positioned as a strategic asset for both power reliability and support of energy-intensive digital infrastructure, reflecting rising demand from data centers and related facilities.

At the core of the Texas component is Project Star, a $22.3 billion energy infrastructure campus in Encinal, Texas. The campus will create 6.47 GW of natural gas-fired generation capacity. Related Companies and NextEra Energy (NEE) plan to develop, build and operate the power facilities, while Lewis Energy Group will provide associated infrastructure, including gas supply.

Project Star is designed to directly support an adjacent 5 GW digital infrastructure campus, supplying electricity to energy-intensive computing operations. Any excess power generated will be delivered back into the wider grid, adding capacity beyond the needs of the digital campus itself.

The scale of construction is expected to generate significant employment. The project sponsors estimate that peak construction activity will support about 8,400 jobs, with thousands of skilled positions sustained over multiple years as the campus is built out.

Officials described the Texas facility as one of several priority projects in a larger U.S.–Korea energy collaboration. The first phase of the Texas initiative is expected to begin commercial operations in 2029, with full build-out coming online in stages through 2032. This phased approach is intended to align new generation with rising demand, particularly from digital infrastructure.

The initiative also features a nuclear cooperation element. U.S. and Korean parties, including Westinghouse Electric, Korea Electric Power Corp. and Korea Hydro & Nuclear Power, signed a nuclear agreement that frames future collaboration. The plan calls for exploring potential Korean investment in Westinghouse and deeper participation in U.S. nuclear supply chains.

In addition, the Alaska liquefied natural gas project has been under discussion within the broader package. South Korean participation in Alaska LNG had not been finalized at the time of the latest reports, with Korean officials reviewing commercial feasibility and domestic legal requirements before making any commitment.

The combination of large-scale natural gas capacity, digital infrastructure support, and nuclear cooperation underscores an effort to bolster U.S. energy reliability while attracting foreign investment. Project Star, in particular, is designed to meet the growing electricity needs of data centers while adding capacity to the Texas grid.

For regional economies, the Encinal development is expected to provide a multiyear boost in construction employment and related activity. For the U.S.–Korea relationship, the emerging portfolio of projects illustrates a strategic alignment around energy security, advanced infrastructure, and industrial collaboration in both conventional and nuclear power.