US and Korea back $22.3B Texas energy and data center campus
What's the deal? The US Department of CommerceDealroom has a profile for this one. Try Dealroom → and the Republic of Korea are jointly funding Project Star, US$14.4B energy infrastructure campus in Encinal, Texas. Related CompaniesDealroom has a profile for this one. Try Dealroom → and NextEra Energy ResourcesDealroom has a profile for this one. Try Dealroom →, in partnership with Lewis Energy GroupDealroom has a profile for this one. Try Dealroom →, will develop, build, and operate the site.
What's the endgame? The campus will generate 6.47 GW of natural gas power to serve a privately funded 5 GW data center campus that Related DigitalDealroom has a profile for this one. Try Dealroom → is building on an adjacent site. Excess power will flow back to the grid, supporting reliability and affordability for local customers.
Why now? The project implements the US-Korea trade deal announced on July 30, 2025, and a strategic investment memorandum of understanding signed on November 14 that year. Both governments will jointly own the energy campus, which will be built and operated by the Related/NextEra joint venture.
What's in it? Construction is expected to create thousands of skilled jobs over several years, peaking at an estimated 8,400. Once operational, the power campus will support roughly 170 permanent jobs, with the data center adding hundreds more.
Why it fits Texas: The plan aligns with Governor Greg Abbott's directive that data centers bring their own generation to the ERCOT grid. "We are not only bringing our own power and protecting ratepayers, but contributing excess power to the grid, protecting Texas water, and creating huge new economic benefits," said Jeff T. Blau, chairman of Related Digital and chief executive officer of Related Companies.
The signal: "Project Star demonstrates how energy infrastructure and economic growth can advance together," said John Ketchum, chairman and chief executive officer of NextEra EnergyDealroom has a profile for this one. Try Dealroom →. The deal ties together two of the era's defining pressures — surging AI-driven power demand and US-Korea industrial cooperation — into a single, government-backed bet on self-contained energy for data centers.
Read more: ca.advfn.com
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