South Korea and the United States are reported to be considering a joint investment of approximately $22.3 billion in a 6.3GW gas power plant in Encinal, Texas. The reports emerged around September 7-8, 2026, with the project cited as the first under the recently signed Korea-US trade agreement, which includes a $350 billion investment commitment to the US. However, South Korea’s Ministry of Trade, Industry and Energy is reported to have stated that details have not yet been finalized.
The project is reported to involve an initial phase of 1.4GW of gas turbine capacity, followed by an additional 4.9GW combined cycle gas turbine (CCGT) expansion, bringing total capacity to 6.3GW. The plant is reported to be intended to meet surging electricity demand from artificial intelligence (AI) data centers, with a special purpose vehicle (SPV) structure involving Korea Electric Power Corporation (KEPCO) reportedly under consideration. Doosan Enerbility has been mentioned as a leading candidate to supply turbines, though this has not been confirmed.
The investment is reported at approximately $22.3 billion, with total generation capacity of 6.3GW, comprising an initial 1.4GW gas turbine phase and a subsequent 4.9GW combined cycle expansion. Related reports were concentrated around September 7-8, 2026, with South Korea’s Ministry of Trade, Industry and Energy reported to be scheduled to brief the National Assembly on September 17.
This project is cited as an example of implementation of the US investment commitment under the Korea-US trade agreement, and is reported to be intended to address surging US electricity demand driven by the spread of AI data centers.
If this project is actually finalized, it is likely to draw significant industry attention as the first large-scale example in the energy and infrastructure sector among US investments under the Korea-US trade agreement. The reported consideration of an SPV structure involving KEPCO suggests a model in which a Korean public enterprise directly participates in overseas power infrastructure investment, potentially setting a precedent for similar future overseas power project participation models. Amid a broader increase in gas power projects across the US aimed at meeting AI data center electricity demand, this project stands out as one of the larger recently announced projects in terms of scale (6.3GW). With Doosan Enerbility mentioned as a leading turbine supply candidate, an actual contract award could also be seen as an example of expanded market entry by a Korean heavy industry firm into the US power equipment market. However, as this remains an early stage with details not yet finalized, the investment structure, financing approach, and beneficiary companies could still change.
What details are disclosed at South Korea’s Ministry of Trade, Industry and Energy briefing to the National Assembly scheduled for September 17 is the first point to confirm. How the SPV structure involving KEPCO will actually be designed is also worth watching. Whether Doosan Enerbility’s turbine supply is actually confirmed is another point to watch. Whether this project leads to additional energy infrastructure investment cases under the Korea-US trade agreement also remains to be seen.