U.S. power company NRG Energy has reportedly announced plans to build a 1.2 GW CCGT (Combined Cycle Gas Turbine) power plant in Texas dedicated to a data center customer. The plant is reported to supply power to an unnamed global cloud and artificial intelligence (AI) hyperscaler and could be expanded to 2.4 GW in the future.
NRG Energy is reported to have disclosed the project during its second-quarter 2026 earnings conference call. The plant is being built on the basis of a minimum contract term of at least 15 years with an investment-grade hyperscaler, while the turbine supplier and Engineering, Procurement and Construction (EPC) contractor have not yet been disclosed.
The plant’s capacity is 1.2 GW, expandable to 2.4 GW, with total investment reported at approximately $3.2 billion (roughly $2,700 per kW). The commercial operation target is reported to be late 2029. NRG is reported to expect approximately $500 million in annual adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from the plant, and its 2026 capital allocation plan is reported to reflect $721 million for the new Texas project.
As power demand in the United States surges amid the expansion of AI data centers, an increasing number of power companies are reported to be signing long-term contracts with hyperscalers and building dedicated generation facilities.
Implications for Korea’s Industry
As demand for data center-dedicated power generation facilities grows, it is reported that Korean power equipment and gas turbine companies would benefit from reviewing the structure of U.S. hyperscaler power supply contracts.
The selection of the turbine supplier and EPC contractor, and whether the late-2029 commercial operation target is achieved, are cited as key points to watch.