Project Star: $22B Gas Power Campus Planned in Encinal, Texas
A $22 billion-plus, 6.47 GW gas-powered energy campus is planned for Encinal, Texas, with first generation as early as 2029, OK Energy Today reports.
Market Impact
The U.S. Department of Commerce and the Republic of Korea selected Related Companies and NextEra Energy Resources, partnering with Lewis Energy Group, to develop Project Star. At full scale, the campus is meant to support a privately funded 5 GW data center campus that Related Digital is developing on an adjacent site. Excess generation would go back to the grid. The project fits Gov. Greg Abbott’s directive that data centers bring their own generation to the ERCOT system.
Per the report, NextEra Energy Resources and Related plan to develop, build and operate the gas-fired generation. Lewis Energy Group is providing land, produced water and natural gas supply, plus associated infrastructure including gas. The campus will be owned jointly by Korea and the U.S. under the trade agreement structure. The Related/NextEra joint venture will build and operate it, and the team is expected to draw on Korean companies’ technology and supply chain strengths. The deal traces to the July 30, 2025 trade agreement and the Nov. 14, 2025 Strategic Investment MOU.
Project Star is expected to be built in phases, subject to required permitting and approvals. Construction is estimated to peak at 8,400 jobs, and the power campus is expected to support about 170 permanent jobs. The announcement says the investment will create opportunities for local contractors, suppliers, small businesses and service providers. NextEra Energy, which would build and operate the plant, says it has invested over $20 billion and operates more than 9 GW of generation in Texas.
“We’re helping strengthen reliability, support investment and jobs and protect electricity customers,” said NextEra Energy Chairman and CEO John Ketchum.
What It Means for Subcontractors
- No bid stage exists. The source names no EPC contractor, no subcontract packages and no bid dates. The only timing marker is first generation “as early as 2029,” subject to permitting and approvals.
- Watch the developers for the first packages. Related and NextEra Energy Resources are the build-and-operate team, so site, EPC or construction management announcements should come from them. Texas civil, electrical and pipeline subs should check their prequalification status with both.
- Our inference on scope, not stated in the source: A 6.47 GW gas plant with an adjacent 5 GW data center would likely need site civil work, electrical and interconnection scope, and gas and water lines. Lewis Energy’s role supplying gas, water and associated infrastructure suggests pipeline and water-handling work may sit with Lewis rather than the power plant EPC. Ask both parties who procures what.
- Expect competition from Korean suppliers. The team is expected to leverage Korean companies’ technology and supply chain. Equipment and possibly some scope could be sourced through those channels, so sharpen your local-labor and schedule pitch.
- Labor demand is a long-range signal. The 8,400 peak-construction estimate is multi-year and phased. Crafts with Texas gas-plant experience should expect competing demand if the schedule holds. Crew planning can start once phase dates are published.
