Report: South Korea to Invest $22.3B in Texas Gas Plant for AI Data Centers

The project would fall under an economic arrangement signed in 2025 under which South Korea committed $350 billion to ventures in the United States in exchange for more favorable tariff terms on its exports. If completed as reported, the Encinal facility would become one of the most expensive gas-fired generating stations ever built and the second most powerful of its kind operating globally.

South Korea's Industry Ministry, however, said the media reports were not accurate, adding that official discussions with Washington are still under way and no exact figures can be confirmed. A formal announcement would come only after those talks conclude and after domestic approval, including from Seoul's legislature. The ministry also said no decision had been made on constructing an atomic energy facility on U.S. soil.

South Korea is weighing other American ventures as well, including a large-scale nuclear station and a separate gas export project tied to Alaska. The Texas plant, once running, would supply power to server farms supporting growing AI computing needs across the region.

Many details remain unresolved. Neither government has publicly settled the financing structure, ownership stakes, or construction timeline, and Washington has not issued detailed confirmation of the figures circulating in South Korean press coverage. Analysts say the eventual investment scale could shift depending on how negotiations proceed this fall.

A facility of this size would place significant demands on the Texas electrical grid, water access, and local infrastructure. Given past community reactions to projects with similar demands, the pressure may not be welcomed quietly by residents near Encinal.