South Korea is contemplating a significant investment in the United States with a $22.3 billion natural gas power project in Texas. This initiative marks the first major move under South Korea’s ambitious $350 billion commitment to the U.S. The project aims to construct a 6.3-gigawatt gas-fired power plant in Encinal, Texas, a response to the growing electricity demand spurred by the rapid growth of AI data centers and cutting-edge semiconductor facilities in the region.
Initially, South Korea considered investing around $19.8 billion in the project, while the U.S. had proposals reaching up to $25 billion. Ongoing negotiations have reportedly brought the figure closer to $22.3 billion, though the final investment amount and the plant’s capacity remain subject to change. The development is expected to proceed in phases, starting with the installation of approximately 1.4 gigawatts of gas turbine capacity. Subsequent stages could see the addition of up to 4.9 gigawatts of combined-cycle generation, contingent on electricity demand and economic conditions.
Parallel to these developments, South Korea and the U.S. are in discussions about potentially launching a substantial nuclear program. The U.S. has suggested dedicating up to $120 billion from the investment package to construct as many as eight large nuclear reactors. These talks include the possible implementation of South Korea’s APR100 reactor design for two of these units, illustrating the depth of collaboration between the two nations.
The $350 billion commitment by South Korea is divided into $200 billion for broader investments across the U.S. and $150 billion focused on bolstering the American shipbuilding sector. Before finalizing these investment arrangements, South Korea is obliged to present a briefing to its National Assembly. A memorandum outlining the investment framework could be signed as early as September 18, although discussions are still underway. According to South Korea’s industry ministry, no definitive decisions have been made regarding the Texas gas project or the proposed nuclear program in the U.S.