South Korea Eyes $22.3 Billion Texas Gas Plant to Power AI Data Centers

South Korea has committed to investing $22.3 billion in a 6.3 gigawatt gas-fired power plant located in Texas, as part of its trade agreement with the Trump administration. This marks South Korea's inaugural investment under the trade deal, according to Reuters, citing Korean media sources. The power plant's primary function is to provide electricity to data centers in the state.

South Korea, along with other Asian countries, has pledged substantial financial support to the U.S. in exchange for more favorable import tariff conditions from President Trump. Seoul's overall investment in the United States is estimated to reach $350 billion, which could also be directed towards a nuclear power plant project or Alaska LNG, as reported by Korean media outlets.

In July of the previous year, President Trump signed a deal that lowered the tariff on South Korean imports from 25% to 15%, a move that avoided a more severe 25% tariff that Washington had initially threatened. As per the trade deal, South Korea has agreed to buy $100 billion worth of U.S. liquefied natural gas and other energy commodities, a decision praised by President Trump as a victory for American workers and energy producers.

In early 2026, South Korea also announced plans to import more crude oil from the United States, a move expedited by the ongoing conflict between the U.S. and Iran and the subsequent scarcity of energy exports to Asia. Liquefied gas prices on the spot market for Asia reached nearly $26 per million British thermal units last week due to the resumption of hostilities between the U.S. and Iran in the Persian Gulf, raising concerns about the likelihood of normal tanker traffic resuming in the region.

South Korea is the third-largest importer of liquefied natural gas globally, following China and Japan. Meanwhile, Qatar has maintained force majeure on its exports.