South Korea has transferred $2.4 billion toward Project Star, a $22.3 billion gas-fired power plant planned in Encinal, Texas. The 6,472 MW combined-cycle plant will supply co-located AI data centers, with first commercial operation targeted as early as 2029. Finance Minister Lee Hyoung-il confirmed the transfer on October 6.
Lee told a parliamentary audit that around 10 percent of the project’s estimated budget was sent to the United States on Thursday, and he said the project met the commercial viability requirement. According to the U.S. Department of Commerce, the plant will be led by developer Related Companies and U.S. power company NextEra Energy, with Lewis Energy Group supplying the site, gas and water. Furthermore, Project Star is one of three projects announced on September 30 under Seoul’s $350 billion investment commitment to the United States.
Meanwhile, Texas is adding supply from the other direction as well. Repsol began construction on the 595 MW Pecan Prairie solar facility in Leon County in October 2025, with commercial operation expected in 2027. Project Star has nearly eleven times the nameplate capacity, but Pecan Prairie is expected online about two years before the earliest Star output, so the two schemes show gas and solar capacity being added in Texas on different timetables.
Project Star Texas Power Plant Pairs 6,472 MW of Gas Generation With a 5 GW Data Center Campus
Project Star is a natural gas power facility in Encinal, Texas, designed to be built with a direct connection between the generating plant and the offtaker. At full scale, according to the developers’ announcement, the plant will support a privately funded 5 GW data center campus that Related Digital is developing on an adjacent site.
The plant will also deliver excess power back to the grid. Moreover, the 6.47 GW of generation exceeds the campus capacity by roughly 1.5 GW, although the announcement does not state how much power will be exported.
NextEra Energy Resources and Related Companies plan to develop, build and operate the generation, while Lewis Energy Group provides the land, produced water and natural gas supply. In addition, NextEra reports more than $20 billion of investment and more than 9 GW of generation in Texas, and Related Digital reports $55 billion of data center development underway across Ontario and five US states.
The developers describe the plan as consistent with Governor Greg Abbott’s directive that data centers bring their own generation to the ERCOT system. Commerce said the first phase of commercial operation begins in 2029, with the full facility coming online in stages by 2032.
Korean Funding Moves Ahead Under Seoul’s $350 Billion US Investment Pledge
The $2.4 billion transfer was confirmed in response to a question from Rep. Lim Lee-ja of the main opposition People Power Party. She argued that parliamentary approval would be necessary if the project were not commercially viable, and Lee replied that the Texas project met that requirement. Commerce said the project was assessed to meet the commercial reasonableness standard under the Strategic Investment MOU.
The pledge was unveiled last year in return for lower tariffs and comprises $150 billion for shipbuilding cooperation and $200 billion for projects in strategic sectors. Furthermore, the announcement implements the July 30, 2025 trade deal and the November 14, 2025 investment memorandum.
The developers state that the energy campus will be owned jointly by the Republic of Korea and the United States under the trade agreement structure. The Related and NextEra Energy Resources joint venture team will build and operate it. As a result, Korean capital sits in the ownership structure, while the engineering and operating roles rest with the US developers.
Both governments plan to expand the participation of Korean companies across equipment, engineering, construction and long term operation and maintenance. Additionally, the United States intends to give Korean companies the chance to supply equipment, including turbines, to other similar projects.
Project Star Texas Power Plant Jobs and Permits Remain Estimates and Conditions
The developers estimate 8,400 jobs at peak construction and about 170 permanent jobs at the power campus. That is roughly 50 construction jobs for every permanent one, and the adjacent data center campus is expected to add hundreds of permanent jobs of its own.
Initial generation is anticipated as early as 2029, subject to required permitting and approvals. Therefore, the 2029 date is a target and not a committed schedule. No main contractor, turbine supplier or lender has been named in the announcements reviewed.
Project Star is also the first of three Korea and US projects to move toward funding. A second, Project Power, covers eight large nuclear reactors, with $120 billion of the $200 billion allocation. A third, Project North, concerns the Alaska LNG project, which Lee said is still under review for commercial viability.
Project Overview
- Project Name: Project Star
- Developer: Related Companies and NextEra Energy Resources joint venture, with Related Digital
- Location: Encinal, La Salle County, Texas
- Project Type: Natural gas combined-cycle power plant serving co-located data centers
- Project Value: $22.3 billion
- Capacity: 6,472 MW (6.47 GW), supporting an adjacent 5 GW data center campus
- Ownership: Jointly owned by the Republic of Korea and the United States under the trade agreement structure
- Funding Status: $2.4 billion transferred from Korea, around 10 percent of the estimated budget
- Status: Selected September 30, 2026; permitting and approvals pending
- Phasing: Phase 1 commercial operation in 2029; full facility online in stages by 2032
- Gas, Land and Water Supply: Lewis Energy Group
- Construction Jobs: Estimated 8,400 at peak
- Permanent Jobs: About 170 at the power campus
- Offtake: Direct connection to the adjacent data center campus, with excess power delivered to the grid
- Korean Participation: Equipment, engineering, construction and operation and maintenance opportunities sought
Project Team
Owners and Developers
- Co-Owner: Government of the Republic of Korea
- Co-Owner: U.S. Department of Commerce
- Developer: Related Companies
- Data Center Developer: Related Digital
- Developer and Operator: NextEra Energy Resources
- Land, Gas and Water Supply: Lewis Energy Group
- Korean Government Agency: Ministry of Trade, Industry and Resources
Design, Construction and Finance
- Design Team: Not publicly disclosed
- Main Contractor: Not yet awarded
- Turbine Supplier: Not yet announced
- Lenders: Not publicly disclosed
Related Project: Pecan Prairie Solar Facility
- Developer: Repsol
Leave a Reply