Korea Announces Planned $22.3 Billion Gas-Fired Power Project in Texas for Semiconductor and AI Data-Center Demand

The Korean government has identified a planned gas-fired power plant in Encinal, Texas, as its first strategic investment project in the United States under a $350 billion investment package. The project is valued at $22.3 billion and is intended to address growing electricity demand from semiconductor manufacturing facilities and AI data centers.

For data-center operators and large compute customers, the announcement highlights the increasing dependence of new AI capacity on power-system buildout rather than solely on site-level electrical infrastructure. The project is framed around new dispatchable generation, while the source also anticipates associated demand for energy-storage systems (ESS) to store energy and support supply stabilisation for data centers.

The potential infrastructure requirement extends to transmission and distribution equipment, including transformers and switchgear. If the project proceeds, it could broaden the U.S. market opportunity for suppliers of ESS, high-voltage equipment and power-distribution systems.

The announcement is also relevant to Korean battery suppliers. LG Energy Solution, Samsung SDI and SK On identify ESS as a key revenue area. Separately, iM Securities expects Samsung SDI’s ESS sales to rise by about 32% sequentially in the third quarter; this is an analyst forecast rather than reported revenue.

The development remains at the planning stage. No generation capacity, data-center power allocation, construction schedule, financing structure, commissioning date or confirmed equipment orders were provided in the available material.