South Korea Pledges Billions to Build Texas Gas Plant

A massive gas-fired power plant is set to be built in Encinal, Texas, after South Korea and the US finalized an agreement for a $22.3 billion investment.

The facility will have a combined capacity of 6.3 gigawatts and is designed to meet the surging electricity demand created by AI data centers.

This deal marks the first concrete deliverable from a bilateral trade framework established in 2025, under which South Korea pledged $350 billion in total US investments.

The gas plant investment has been a moving target, with earlier projections pegging it at $19.8 billion and discussions to potentially push it as high as $25 billion.