US and South Korea Invest in Texas Energy Infrastructure Project

The U.S. Department of Commerce and the Government of the Republic of Korea have selected Related Companies and NextEra Energy Resources, in partnership with Lewis Energy Group, to develop Project Star. This initiative involves a $22 billion energy infrastructure campus with 6.47 gigawatts (GW) of natural gas-powered generation capacity in Encinal, Texas.

The project will support a privately funded 5 GW digital infrastructure campus being developed by Related Digital on an adjacent site. Furthermore, Project Star will contribute excess power generation back to the grid, aiming to enhance reliability and affordability. This aligns with Texas Governor Greg Abbott's directive for data centers to provide their own power generation for the ERCOT system.

NextEra Energy Resources and Related Companies are slated to develop, construct, and operate the natural gas-powered generation facilities. Lewis Energy will provide associated infrastructure, including natural gas supply. The investment is projected to create thousands of skilled, high-paying construction jobs over several years, with an estimated 8,400 jobs during peak construction. Upon completion, the power campus is expected to support approximately 170 permanent jobs, with the adjacent data center campus creating hundreds more.

This investment is part of the implementation of the trade agreement between Korea and the United States and a strategic investment memorandum of understanding. The initiative aims to foster cooperation in strategic sectors like energy and artificial intelligence. The energy campus will be jointly owned by the Republic of Korea and the U.S. under the trade agreement framework and will be built and operated by the Related/NextEra Energy Resources joint venture. The project also intends to leverage technological capabilities and supply chain strengths from Korean companies to ensure stable and efficient execution.