South Korea to invest $22.3 billion in Texas gas plant for AI data centers

September 7, 2026 at 12:15 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

South Korea has agreed to invest $22.3 billion in a 6.3 GW gas-fired power plant in Texas, its first investment under the trade deal with the Trump administration. The plant will supply power to data centers in the state. The investment is part of Seoul's broader $350 billion commitment to U.S. projects.

Key Facts

South Korea's $22.3 billion Texas gas plant will have a capacity of 6.3 GW and supply power to data centers in the state.
Seoul has promised to invest a total of $350 billion in the United States.
Under the trade deal, South Korea committed to purchasing $100 billion worth of U.S. LNG and other energy commodities.
The U.S. imposed a 15% tariff on imports from South Korea in July last year, averting a threatened 25% levy.
Asia spot LNG prices surged to almost $26 per million British thermal units last week amid renewed U.S.-Iran conflict.

The Texas Investment

South Korea has reportedly agreed to invest $22.3 billion in a gas-fired power plant in Texas as part of its trade deal with the Trump administration. The investment would be South Korea's first under the trade deal, according to Reuters citing Korean media. The power plant will have a capacity of 6.3 GW and will supply power to data centers in the state. Some of the $350 billion Seoul has promised for U.S. investments could go towards a nuclear power plant project or Alaska LNG, Korean media reported.

Trade Deal Commitments

President Trump announced a deal in July last year that imposes a 15% tariff on imports from South Korea, averting a much steeper 25% levy originally threatened by Washington. As part of the trade deal, South Korea committed to purchasing $100 billion worth of U.S. liquefied natural gas and other energy commodities. In early 2026, South Korea signaled plans to import more crude oil from the United States, a decision hastened by the U.S. and Israeli war against Iran and the resulting squeeze on energy exports to Asia.

LNG Market Pressures

Liquefied gas prices on the spot market for Asia surged to almost $26 per million British thermal units last week as the United States and Iran resumed the exchange of fire in the Persian Gulf. The renewed conflict cast new doubts about the chances of resumption of normal tanker traffic in the waterway anytime soon. South Korea is the world's third-largest importer of liquefied natural gas, after China and Japan. Qatar extended the force majeure on its exports.