The disclosure and our analysis
Evidence dates
Evidence: NextEra Energy news release dated September 30, 2026; The Korea Times report dated October 1, 2026. Figures are as of those dates.
What was announced
The U.S. Department of Commerce and the Government of the Republic of Korea announced a strategic investment in Project Star, a $22.3 billion energy infrastructure campus in Encinal, Texas, according to the release published by NextEra Energy on September 30, 2026. The headline gives the cost as $22.3 billion and the body as $22+ billion. The release says the campus will have 6.47 GW of generation capacity, powered by natural gas from Texas. [Source 1]
Under the joint trade agreement structure, the release says the energy campus will be jointly owned by the Republic of Korea and the United States, and built and operated by a joint venture of Related Companies and NextEra Energy Resources. The release says Lewis Energy is bringing associated infrastructure, including gas. [Source 1]
The release says that at full scale Project Star will support a privately funded 5 GW data center campus that Related Digital is developing on an adjacent site, and that excess generation will be delivered to the grid. Elsewhere it calls the adjacent site a 5 GW digital infrastructure campus. The release does not say whether the 5 GW figure is critical IT load, utility service capacity or another basis. [Source 1]
The release says the project will be developed in phases, with initial generating resources anticipated as early as 2029, subject to required permitting and approvals. The Korea Times reports the plant as a 6,472 MW combined cycle facility with first phase commercial operation in 2029 and full operation targeted for 2032. [Source 1] [Source 2]
The release estimates 8,400 jobs at peak construction and about 170 permanent jobs at the power campus. [Source 1]
How the investment is structured, per Korean reporting
The Korea Times reports that Project Star is the first project selected under Korea's $350 billion U.S. investment commitment. It reports that Korean funds flow through an investment special purpose vehicle, that project proceeds are split equally between Korea and the United States until Korea recovers its principal and interest, and that the interest rate is based on 20-year U.S. Treasury yields plus an agreed spread. We did not review the underlying agreement. [Source 2]
Buyer analysis
This is our analysis.
**Generation is not data center capacity.** The 6.47 GW is generation capacity at the power campus. The 5 GW is the planned size of a separate data center campus with no stated power basis. Neither figure is leasable space, and no tenant, phase schedule or delivery date for the data center has been disclosed.
**This is a self-generation model at very large scale.** The release ties the project to Texas policy favoring data centers that bring their own power. Buyers considering capacity on a campus like this should ask how much of the load is served by on-site generation versus the grid, what backup applies when units are down, and how gas price risk flows through to power cost.
**Timing is long and conditional.** Initial power is targeted as early as 2029 and, per Korean reporting, full operation in 2032. Both depend on permits and approvals. Buyers should treat this as a long-dated option on future supply, not near-term inventory.
**Government ownership is unusual.** A power campus jointly owned by two governments and operated by private developers is a new structure for data center supply. Buyers should expect contract terms, credit support and change-of-control provisions to look different from a typical utility or developer deal.
