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US and Korea Back $22.3 Billion Energy Campus in Texas

The U.S. Department of Commerce and the Republic of Korea have greenlit Project Star, a $22.3 billion energy infrastructure campus in Encinal, Texas. Developed by Related Companies, NextEra Energy, and Lewis Energy Group, the site will generate 6.47 gigawatts of natural gas power to fuel an adjacent 5 GW data center facility.

US and Korea Back $22.3 Billion Energy Campus in Texas

The project serves as a cornerstone of the U.S.-Korea trade agreement, aiming to bolster energy independence and artificial intelligence infrastructure. By integrating power generation directly with a digital hub, developers intend to satisfy Governor Greg Abbott’s requirement that data centers provide their own power to the ERCOT grid. Surplus energy will be fed back into the regional system, intended to stabilize costs and improve local reliability.

Construction is expected to be a significant economic driver for South Texas. Estimates suggest the development will create 8,400 jobs during the peak of construction and 170 permanent positions for the power campus alone. The partnership leverages Lewis Energy Group’s regional land and gas supply, while NextEra Energy—the world’s largest publicly traded power company—will oversee the construction and operation of the generation facilities. Initial power production is slated to begin in 2029, pending the necessary regulatory approvals and permitting processes.

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