Key facts
- South Korea plans a $22.3 billion investment in a 6.3 GW gas-fired power plant in Texas.
- The plant is intended to meet the rising power demand for AI data centers.
- This investment is part of a broader trade agreement where Seoul pledged $350 billion in U.S. investments.
- The trade deal includes South Korea purchasing $100 billion in U.S. LNG and energy commodities.
- South Korea's Industry Ministry stated that reports on the Texas gas project were inaccurate and consultations were ongoing.
South Korea is reportedly planning a significant investment of approximately $22.3 billion to construct a 6.3-gigawatt gas-fired power plant in Encinal, Texas. This project is intended to address the increasing power demands of artificial intelligence data centers. The investment is a component of a broader trade agreement between South Korea and the U.S. administration, under which Seoul has pledged a total of $350 billion in U.S. investments in exchange for favorable U.S. tariffs on South Korean goods. As part of this deal, South Korea also committed to purchasing $100 billion worth of U.S. liquefied natural gas (LNG) and other energy commodities. While media reports have detailed the Texas project, South Korea's Industry Ministry has stated that these reports are inaccurate and that consultations between Seoul and Washington are ongoing, making specific details difficult to confirm. The ministry indicated that any announcement would be made after negotiations are completed and parliamentary approval is secured.