Korean Battery Makers Eye U.S. ESS Demand as Texas AI Power Project Advances
A proposed 6.3-gigawatt gas-fired power project in Texas is raising expectations that Korean battery makers could gain new energy-storage business as AI data centers demand more stable electricity supplies.
South Korean battery makers are positioning themselves for potential growth in the United States as artificial intelligence data centers increase demand for power systems that combine gas generation with battery energy storage.
The Korean government recently told the National Assembly that its first proposed strategic investment project in the United States would be a 6.3-gigawatt combined-cycle gas power plant in Encinal, Texas. The plant would supply electricity to nearby data centers planned with a combined capacity of 5 gigawatts. The project is estimated at 30 trillion won.
The proposal could create opportunities for Korean suppliers because AI data centers need more than large volumes of electricity. Their operations can involve hundreds of thousands of graphics processing units, creating sharp fluctuations in demand. Even a brief outage can disrupt services at scale, making power quality and reliability central concerns for developers.
Battery energy storage systems can help smooth those fluctuations and provide backup support alongside gas-fired generation. Industry analysts increasingly view the combination as a practical option for data centers that require steady power while grid infrastructure struggles to keep pace with rapidly expanding generation capacity.
A similar model is taking shape at xAI’s Colossus data center in Memphis, Tennessee, where Tesla Megapack storage systems are being deployed with gas turbines as part of a 1.2-gigawatt power installation. The example underscores how storage equipment may become a standard component of large AI infrastructure projects rather than an accessory limited to renewable energy.
Korean battery producers are already adapting manufacturing capacity in the United States to serve the storage market. SK On has more than 100 gigawatt-hours of planned or operating capacity across four U.S. plants and is converting part of that capacity for energy-storage products. Its footprint includes two SK Battery America plants in Georgia, a Tennessee plant and the HSBMA facility scheduled to begin operations this year.
LG Energy Solution is producing lithium iron phosphate pouch batteries for storage systems after converting existing lines at its Holland, Michigan, plant. Samsung SDI is also building an LFP battery line for energy-storage applications at its StarPlus Energy joint venture with Stellantis in Indiana.
For the three manufacturers, a U.S. shift toward data-center power packages could open a market beyond their traditional focus on electric vehicles. The size and final structure of the Texas proposal, including whether storage will be included and which suppliers will participate, have not yet been finalized. Still, the project highlights how the AI infrastructure boom is reshaping competition across both the power and battery industries.