South Korea selected the proposed $22.3 billion Encinal project, a 6.3-gigawatt Texas gas plant for AI data centers, pending parliamentary approval; it plans 1.4 gigawatts of gas turbines followed by 4.9 gigawatts of combined-cycle capacity.

South Korea selected a proposed gas-fired power project in Encinal, Texas, as the first project under its $350 billion U.S. investment plan, according to a report citing unnamed government sources. The reported final project cost was approximately $22.3 billion, compared with an initial U.S. request of $25 billion and an initial South Korean consideration of $19.8 billion.

The project is designed for 6.3 gigawatts of total generating capacity intended to supply electricity for AI data centers. This figure refers to planned power-generation capacity rather than data-center information-technology load, GPU capacity or contracted customer demand.

Development is planned in two stages: 1.4 gigawatts of gas-turbine generating units followed by 4.9 gigawatts of combined-cycle generating capacity. The source did not provide construction dates, turbine suppliers, fuel contracts or data-center customers.

The South Korean government planned to report the project to the National Assembly on Monday. A formal announcement was expected later in the month after parliamentary reporting and approval, so the source did not describe the project as finally approved or under construction.