한국 컨소시엄이 인접한 AI 데이터센터 캠퍼스에 전용 기저전력을 공급하도록 특별히 설계된 텍사스 내 223억 달러 규모의 천연가스 화력발전소 건설을 추진 중이다.
According to Korean media reports, South Korea and the United States have reportedly agreed on a $22.3 billion investment for a natural gas power plant in Encinal, Texas. The proposed 6.3-gigawatt facility would represent Seoul’s first significant U.S. energy investment under the two nations’ 2025 trade pact, which includes a broader $350 billion commitment from Seoul to American markets. The figures were disclosed Monday by Korean outlet Edaily, relying on “unnamed officials and lawmakers with knowledge of the negotiations.” However, South Korea’s Ministry of Trade, Industry and Energy has dismissed the news as false, clarifying that no agreement has been finalized and that the country remains in talks with Washington. The plant is intended to supply the rapidly expanding electricity demand from hyperscale AI data center operations in the region.
The Encinal project serves as a tangible demonstration of good faith toward the strategic trade promise. It coincides with heightened activity from large Korean corporations across the United States in semiconductors, electric vehicles, and battery production. A government-led power generation initiative of this scale would be unprecedented for Seoul. Located in a state that has become a hotbed for AI infrastructure, the facility addresses critical grid capacity constraints. Companies such as Google and Nvidia have announced multi-billion-dollar investments to build campuses in the Dallas and Austin areas, driving aggressive data center construction. Consequently, the Electric Reliability Council of Texas (ERCOT) has faced mounting pressure meeting rising demand. The Encinal plant would significantly strengthen regional generation resources during peak demand periods, with potential interconnection to the ERCOT system.
Broader Korean energy diplomacy reflects strengthening U.S.-Asia alliance ties, with reports indicating Seoul is also considering additional U.S. energy investments, including a massive nuclear energy plant and an LNG facility in Alaska. The Ministry of Trade, Industry and Energy directly challenged media reports indicating that it was considering nuclear development seriously, reiterating that no decisions have been taken. Parallel to these diplomatic efforts, related Alaskan energy projects continue to navigate legislative obstacles. The Alaska Gasline Development Corp. (AGDC) plans to request $2.5 million from the Alaska State Legislature in 2027 for a trans-Alaska natural gas pipeline investment program. Despite the Alaska House rejecting a compromise tax-cut bill, AGDC will continue to pursue the proposed $44 billion project.
Final authorization for the Encinal facility requires navigating complex domestic and bilateral procedures. Any South Korean government investment of this magnitude must secure parliamentary approval, with lawmakers historically imposing financial viability and environmental impact conditions on overseas energy investments. The financing structure between government and private partners remains unclear, and supply chain and tariff negotiations are still in progress. First reported in September 2026, the construction timeline for the Encinal Texas power plant remains undetermined. An official announcement is expected once U.S.-South Korea negotiations, including those with the U.S. Commerce Department, are complete. Upon finalization, the parliamentary approval process will commence. If realized, the project may serve as a model for future allied energy investments, reinforcing Seoul’s supply chain diversification and deepening strategic economic cooperation.