South Korea Puts $23 Billion into Texas Natural Gas Power Plant

South Korea's $23 billion natural gas investment in Texas marks the first significant commitment to the U.S. under its new $350 billion agreement.

The project, worth an estimated $22.6 billion, will create a 6.3-gigawatt power plant in Encinal, Texas, which is expected to meet the state's growing demand for artificial intelligence computing capacity and data center development.

Last year's tariff talks between the U.S. and South Korea led to a 10 percent decrease in tariffs imposed on South Korea from 25 to 15 percent, provided the country invests $350 billion in the U.S.

South Korea initially proposed investing $19.8 billion, but negotiations have settled at the current figure after the U.S. countered with $25 billion.