South Korea has chosen a roughly $22.3 billion gas-fired power plant project in Texas as the inaugural venture under its $350 billion US investment pledge, according to an unnamed government source cited by a local economic daily.

The final cost of the project, negotiated between the two sides, stands at about $22.3 billion, down from an initial US request for $25 billion and above Seoul's original estimate of $19.8 billion.

Located in Encinal, Texas, the facility will have a total installed capacity of 6.3 gigawatts, designed to meet the surging electricity needs of AI data centers. Construction will begin with a 1.4 GW gas turbine unit, with an additional 4.9 GW of combined-cycle power generation to be added later.

The South Korean government plans to brief its parliament on the project on Monday and, after completing the necessary reporting and approval procedures, officially unveil this first US investment initiative later this month.