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South Korea and US Agree on $22.3B Texas Gas Project to Power AI Data Centers

South Korea and the United States have agreed that Seoul’s planned investment in a Texas gas project will amount to approximately $22.3 billion, South Korean newspaper Edaily reported on Monday, citing unnamed government officials and politicians.

According to media reports, the initiative—slated to become South Korea's first direct investment in the U.S. under the bilateral trade pact finalized last year—aims to build a 6.3-gigawatt gas-fired power plant in Encinal, Texas, to satisfy surging electricity demand driven by artificial intelligence (AI) data centers.

The capital expenditure will form part of the landmark trade agreement signed by the two allied nations last year, under which Seoul committed to injecting $350 billion in investments into the U.S. in exchange for preferential tariff treatment on South Korean exports.

The reports did not clarify whether Seoul will shoulder the entire cost of the Texas development.

Additionally, South Korea is exploring other potential energy ventures across the United States, including the construction of a large-scale nuclear power plant and a liquefied natural gas (LNG) export project in Alaska.