South Texas to get $22B power project tied to data center

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Published October 7, 2026 4:53 PM CDT

In this photo taken on February 4, 2026, racks of GPUs (graphics processing units) with a closed-loop liquid cooling system are seen inside an operational Microsoft data centre in Karawang, West Java. Non-stop buzzing fills a windowless Microsoft dat

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The Brief

    • The U.S. and South Korean governments are backing a $22 billion project to build a 6.47 gigawatt natural gas power plant in Encinal, Texas.
    • The plant will directly power a 5GW data center next door, with excess electricity sent to the Texas grid. The first phase is expected online in 2029, with full operations by 2032.
    • Construction is expected to create 8,400 jobs, while the completed power campus and data center are expected to bring hundreds of permanent jobs.

The United States and South Korean governments are working together on a plan that would bring a large gas power plant to La Salle County, Texas, to directly power data centers.

Project Star is a $22 billion power project

According to the U.S. Department of Commerce, the 6.47 gigawatt combined-cycle gas power plant will be built in Encinal, Texas. The plant will be operated by Related Companies and NextEra Energy Resources, with the first stage expected to come online in 2029 and operate at full capacity in 2032.

According to Related Digital, the power plant will be used to power a 5GW data center on an adjacent site, with the remaining power going to the Texas power grid. 

Related's project page states that the data center project will use a closed loop water cooling system that will use around the same amount of water daily as an office building. The power project is looking for ways to use produced water, water that is a byproduct of oil and natural gas extraction, for cooling.

Talarico vs. Paxton: Different plans for Texas’ data center boom

Data centers have become a major talking point as their growth continues to expand across Texas, sparking debate surrounding who should have the final say in their regulation and what should be regulated.

Power plant to bring 170 jobs to the area

NextEra said construction on the project is expected to bring 8,400 jobs to the area.

Once construction is complete, the power campus is expected to have 170 permanent jobs and the data center will create "hundreds of good-paying permanent jobs."

What they're saying:

"Project Star demonstrates how energy infrastructure and economic growth can advance together," said John Ketchum, chairman and CEO of NextEra Energy. "By bringing new generation online to serve new demand, we're helping strengthen reliability, support investment and jobs and protect electricity customers."

The project comes as part of the implementation of the trade deal between Korea and the United States, announced on July 30, 2025, and the Strategic Investment MOU signed on Nov. 14 of that year. Those efforts aim to enhance cooperation between Korea and the United States in strategic industrial sectors such as energy and artificial intelligence.

"I am excited to be working with two world class companies in Related Digital and NextEra Energy to develop Project Star," said Rod Lewis, Founder and CEO of Lewis Energy Group. "This project will bring much needed jobs to South Texas, add new power generation to be available to the state of Texas, and ensure the natural gas produced in the South Texas region provides direct economic benefits to our local communities. As a long-time ranching family and resident of La Salle and Webb Counties, we look forward to working with local communities to create a meaningful and environmentally responsible addition to the local economy."

The Source: Information in this article comes from a release from NextEra Energy, the U.S. Dept. of Commerce and Related Digital.

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