The Daily Dig
The U.S. Department of Commerce and the Republic of Korea have selected Related Companies and NextEra Energy Resources to develop Project Star in Encinal, Texas. The natural gas energy campus carries a $22.3 billion price tag. Lewis Energy Group is partnering on the project.
The plant is planned at 6.47 gigawatts (GW) of generation capacity, all fueled by natural gas from Texas.
At full scale, that power will serve a privately funded 5 GW data center campus that Related Digital is developing on the adjacent site. Any excess generation will be delivered back to the grid.
Bring Your Own Power
The setup lines up with Governor Greg Abbott's directive that data centers bring their own generation to the ERCOT system.
A Related/NextEra Energy Resources joint venture will build and operate the plant.
Lewis Energy Group, headquartered in San Antonio, is providing the land, produced water and natural gas supply.
The ownership structure is unusual for a power project. The campus will be jointly owned by the Republic of Korea and the U.S. under the structure of their joint trade agreement.
The announcement is part of implementing the two countries' trade deal announced July 30, 2025, along with a strategic investment MOU signed November 14, 2025.
The team is also expected to draw on the technology and supply chain strengths of Korean companies.
Hard Hats Wanted
Peak construction is expected to create an estimated 8,400 jobs. Once the power campus is operating, it should support about 170 permanent jobs.
"This project will bring much needed jobs to South Texas, add new power generation to be available to the state of Texas, and ensure the natural gas produced in the South Texas region provides direct economic benefits to our local communities," said Rod Lewis, Founder and CEO of Lewis Energy Group.
Development will happen in phases, with initial generation expected as early as 2029, subject to permitting and approvals.
Snapshot:
Project: Project Star
Location: Encinal, La Salle County, Texas
Sector: Energy, power generation supporting data centers
Value: $22.3 billion
Generation Capacity: 6.47 GW, natural gas
Adjacent Campus: 5 GW data center campus, privately funded, developed by Related Digital
Developers: Related Companies and NextEra Energy Resources, in partnership with Lewis Energy Group
Build and Operate: Related/NextEra Energy Resources joint venture
Lewis Energy Group Role: Land, produced water and natural gas supply
Ownership: Jointly owned by the Republic of Korea and the U.S.
Federal Partner: U.S. Department of Commerce
Policy Framework: Korea and U.S. Trade Deal (July 30, 2025), Strategic Investment MOU (November 14, 2025)
Grid: ERCOT, with excess generation returned to the grid
Peak Construction Jobs: About 8,400 (estimated)
Permanent Jobs: About 170 at the power campus, plus hundreds at the data center campus
Delivery: Phased
First Power: As early as 2029, subject to permitting and approvals
Announced: September 30, 2026
TheJobWalk Thoughts
First power as early as 2029 leaves little slack for gas turbines and large transformers, which carry some of the longest lead times in the market. Orders like those typically lock in before crews ever mobilize. Suppliers waiting on a public bid list may find the best seats already taken.
Phased development should spread bid packages over several years, giving subs more than one shot at the work. The Korean supply chain language could also put Korean firms in the mix. And with a project this size landing in a small South Texas town, lodging and per diem belong in the bid, not the change orders.
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