South Korea and U.S. select Texas gas plant as first strategic investment project

Seoul and Washington formally approved a Texas gas-fired combined-cycle power plant, dubbed Project Star, as the first venture under a $350 billion strategic investment framework. The 6,472-megawatt facility, intended for AI data-center power, will be built at a cost of $22.3 billion, with Phase 1 expected to operate in 2029 and full output by 2032. The decision follows a November memorandum of understanding that links Korean capital inflows to lower U.S. tariffs on Korean imports.

Industry Minister Kim Jung-kwan highlighted the focus on profitability, risk assessment, and safeguarding taxpayer money. The project will be led by firms such as Related Companies and NextEra Energy, while parallel initiatives include nuclear reactor construction and an Alaska LNG pipeline review.