South Korea and U.S. Eye 6.3 GW Texas Gas Power Plant as First Joint Strategic Fund Investment South Korea and the United States are weighing a 6.3-gigawatt gas-fired power project in Encinal, Texas, as the inaugural investment under their bilateral strategic investment fund.

A Phased Project Tied to AI Data Center Demand

The proposed Encinal project would be constructed in two distinct phases. The first phase would deliver 1.4 gigawatts of gas-turbine capacity, followed by a second phase adding 4.9 gigawatts of highly efficient combined-cycle capacity, bringing the total to 6.3 gigawatts.

U.S. energy company Lewis Energy Group LP is named as a participant in the project.

The phased construction approach is designed to reduce the initial investment burden. By proceeding in stages, the partner countries would be able to assess actual power demand and the project's economic viability before committing to the full expansion.

The electricity generated would either be sold into the broader Texas power market or supplied directly to nearby artificial intelligence data centers. Infrastructure investment sources noted that data center developers are central to projects that combine power plants and data centers.

Under typical arrangements, power plants sign long-term power purchase agreements with data center developers to secure stable revenue streams.

For project financing purposes, lenders are required to verify the financial capacity and creditworthiness of the power buyer.

Related Companies and the Data Center Connection

The data center component of the project is being led by Related Digital, described as a U.S. data center developer and development and investment platform established by Related Companies Inc.

Related Companies founder Stephen Ross, who serves as its nonexecutive chairman, is identified as a longtime supporter and associate of U.S. President Donald Trump. Ross hosted a fundraiser for Trump in 2019 and holds approximately a five percent stake in Ladder Capital Corp., a firm that provided a loan secured by Trump Tower.

The USD 200 Billion Korea-U.S.

Strategic Investment Fund

The Encinal project is being evaluated as the first investment under the $200 billion Korea-U.S. strategic investment fund. That fund was established to implement a November 2025 agreement under which South Korea committed to investing in U.S. advanced industries and shipbuilding. The two governments are expected to complete the signing of a memorandum of understanding as early as September 18.

At a National Assembly briefing held Monday, South Korea's Ministry of Trade, Industry and Resources reportedly provided only progress updates on projects other than Encinal, declining to disclose specific details.

The ministry and ruling Democratic Party lawmakers remained cautious, stating that the specific details of U.S. investments have not yet been finalized.

Nuclear Power Looms as Dominant Component of the Fund

Beyond the Texas gas project, the two countries are also discussing multiple large-scale nuclear power projects in the United States, intended to meet rising electricity demand driven by artificial intelligence.

If those discussions advance, a memorandum of understanding expected to be signed this month could include a plan to build eight large-scale nuclear reactors. South Korea's nuclear-related investment in the United States could reach USD 120 billion over the long term, according to estimates cited in the report, representing approximately 60 percent of the total USD 200 billion fund.

Government and industry officials are reported to view directing more than half of the fund toward nuclear power positively, citing clearer potential benefits compared to other projects under discussion, including carbon capture, utilization and storage, and spent nuclear fuel recycling.

Officials noted that electricity prices would make assessing commercial rationality more straightforward for nuclear projects, while Korean companies could supply equipment and materials or participate directly in construction activities.

Potential Westinghouse Stake on the Horizon

As nuclear cooperation between the two countries advances, South Korea may also acquire a stake in Westinghouse, the U.S. nuclear technology intellectual property company, when it launches an initial public offering, according to sources cited in the report. No timeline for a potential Westinghouse IPO was specified.

The nuclear projects are described as remaining at an early stage, with any forthcoming memorandum of understanding expected to outline only broad areas of cooperation rather than binding commitments.

The two governments have not publicly disclosed the full scope of nuclear discussions, and specifics continue to be withheld from legislative briefings.