NextEra and Related Companies Plan $22B Texas Energy Campus for Data Centers

NextEra Energy, Related Companies, and Lewis Energy Group will develop Project Star, a $22 billion natural gas-powered energy campus in Encinal, Texas. The facility will generate 6.47 gigawatts (GW) of electricity to support a 5-GW data center while supplying excess capacity to the Texas power grid.

The project will proceed in phases, with initial power generation expected by 2029, pending regulatory approvals and permits. The initiative follows a directive from Texas Governor Greg Abbott requiring data centers to provide dedicated electricity generation to avoid straining public infrastructure.

"Project Star demonstrates how energy infrastructure and economic growth can advance together. By bringing new generation online to serve new demand, we're helping strengthen reliability, support investment and jobs, and protect electricity customers," said John Ketchum, chairman and CEO of NextEra Energy.

Strategic Alignment and Economic Impact

Beyond domestic energy reliability, the project serves as a bridge for international economic ties. Jeff Blau, Chairman of Related Companies, noted that the project is expected to strengthen relations between the United States and Korea while powering American innovation.

"Related Digital was founded on a commitment to responsible infrastructure development, and we are proud to partner on this historic project, which will advance our nation's energy independence, power American innovation, and strengthen the Texas economy and relations between the United States and Korea," said Jeff Blau, Chairman of Related Companies.

For the South Texas region, the development represents an industrial investment. Lewis Energy Group, which operates in the region, highlighted the local economic benefits of using locally produced natural gas to fuel the campus.

"I am excited to be working with two world class companies in Related Digital and NextEra Energy to develop Project Star. This project will bring much needed jobs to south Texas, add new power generation to be available to the state of Texas, and ensure the natural gas produced in the south Texas region provides direct economic benefits to our local communities," said Rod Lewis, founder and CEO of Lewis Energy Group.

Texas Energy Policy Context

The scale of Project Star, at 6.47 GW, is large compared to typical power plant capacities. A large-scale combined cycle natural gas plant often ranges from 500 megawatts (MW) to 1.5 GW. By aiming for 6.47 GW, the consortium is creating a facility with a capacity larger than standard utility-scale projects, reflecting the power requirements of modern high-density data centers used for artificial intelligence and cloud computing. The integration of excess capacity into the Texas grid aims to mitigate the impact of this concentrated load on the state energy system.