NextEra Energy and Related Companies will jointly develop a $22.3 billion energy infrastructure campus in Encinal, Texas, selected by the U.S. Department of Commerce and South Korea's government as a strategic investment. The project, called Project Star, will generate 6.47 gigawatts of gas-fired capacity, with initial generation expected to begin in 2029.
The campus pairs a 5 gigawatt data center operated by Related Digital with on-site power generation designed primarily to serve that facility. Excess generation will feed into ERCOT, Texas's wholesale electricity market. Lewis Energy Group is also a joint developer.
Project Star's scale is substantial relative to Texas generation capacity. ERCOT's peak demand typically reaches 75 to 80 gigawatts, meaning the project's 6.47 gigawatts would supply roughly 8 to 9 percent of that peak if all capacity ran simultaneously. Data centers in Texas have driven utility and policymaker attention to generation availability. Amazon, Google, Meta and others have announced major facilities in the state over the past two years, and each requires dedicated or priority access to large power supplies.
The gas-fired technology is the current market standard for data center power. While renewable energy dominates new generation permits in Texas, data center operators have sought dispatchable gas capacity to ensure continuous availability. NextEra, the parent of Florida Power and Light and NextEra Energy Resources, operates the largest U.S. wind portfolio and has also invested substantially in gas generation to balance its renewables exposure.
The 2029 target for initial generation represents a roughly three-year development and construction window from the announcement date. Major U.S. gas-fired projects often require 24 to 36 months from permitting to commercial operation, though timelines vary significantly by site complexity and supply chain delays.
Related Companies, the New York developer behind urban mixed-use projects including Hudson Yards, has expanded into data center development as institutional capital has flowed into the sector. The company pairs computing facilities with dedicated power to reduce grid dependency and align with corporate power purchase agreements that often require on-site or nearby generation.
The U.S. and South Korean governments identified this project as a priority infrastructure investment. Federal support may take the form of financing assistance, permitting coordination, or export credit. South Korea has positioned itself as a major purchaser of and investor in U.S. energy infrastructure and data center capacity as semiconductor and AI companies expand globally.
