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Korea, US Back $22B Texas Gas-to-Data Center Project Star

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Korea, US Back $22B Texas Gas-to-Data Center Project Star

Dallas – September 30, 2026 -- The U.S. Department of Commerce and the Republic of Korea have selected Related Companies and NextEra Energy Resources, working with Lewis Energy Group, to build Project Star, a $22-billion-plus energy campus in Encinal, Texas, delivering 6.47 gigawatts (GW) of natural gas-fired generation.

Gas plant will directly power a 5 GW data center campus next door

At full scale, the generation facility will supply a privately funded 5 GW data center campus under development by Related Digital on an adjacent site, with surplus capacity fed back into the grid. The structure aligns with Texas Governor Greg Abbott's mandate that data center developers bring their own generation onto the ERCOT system rather than draw solely on existing utility supply.

Construction to generate 8,400 peak jobs, 170 permanent roles

NextEra Energy Resources and Related Companies will develop, build and operate the gas-fired plant, while Lewis Energy Group supplies land, produced water and natural gas. The investment is projected to create thousands of skilled construction jobs over multiple years, peaking at an estimated 8,400 workers. Once operational, the power campus is expected to support roughly 170 permanent jobs, with the adjacent data center campus adding hundreds more.

Deal implements 2025 Korea-US trade and investment agreements

The announcement executes the Korea-U.S. Trade Deal announced July 30, 2025, and a Strategic Investment MOU signed November 14, 2025, aimed at deepening bilateral cooperation in energy and artificial intelligence. The energy campus will be jointly owned by the Republic of Korea and the United States under the trade agreement's framework, built and operated by the Related/NextEra joint venture, which also plans to draw on Korean technology and supply-chain capabilities.

First generation units targeted for 2029

Development will proceed in phases, with initial generating units anticipated online as early as 2029, pending permitting and regulatory approvals. Jeff T. Blau, Chairman of Related Digital and CEO of Related Companies, said the project brings its own power while contributing excess capacity to the grid and protecting Texas water resources. NextEra Energy Chairman and CEO John Ketchum said the project pairs new generation with new demand to strengthen reliability and protect electricity customers.

Partners bring existing Texas infrastructure scale

NextEra Energy has invested over $20 billion and operates more than 9 GW of generation capacity in Texas. Related Digital currently has $55 billion in active data center development representing 6 GW of capacity across Ontario, Wyoming, Michigan, Missouri, Illinois and Texas. Rod Lewis, Founder and CEO of Lewis Energy Group, said the project will channel South Texas natural gas production into direct local economic benefits for La Salle and Webb Counties.

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