NextEra Energy, Inc. (NYSE:NEE), related companies, and Lewis Energy Group were selected to develop Project Star, a more than $22 billion energy campus in Encinal, Texas. The project is expected to have 6.47 GW of generation capacity and was announced by the U.S. Department of Commerce and South Korea under last summer’s trade deal. But what does the project mean for NextEra shareholders?
What Project Star Really Is?
NextEra Energy and Related will handle the construction, development, and operation of the natural gas-powered generation facility, while Lewis Energy will supply the gas. The plant will serve Related Digital’s 5 GW data center campus, which is being built next door, and will send additional electricity to the grid. The facility could begin delivering power as early as 2029, provided the project secures the required permits and approvals.
The project gives the company exposure to the substantial power needs of a large data center. However, the United States and South Korea will jointly own the campus. Project Star is only part of the story. NextEra has another major move that investors may not be expecting.
What’s Missing From the Deal?
The biggest gap in the announcement is what NextEra stands to earn from Project Star. That leaves an important part of the deal unclear.
The company currently trades at a forward P/E of 18.85x, roughly 20% below its five-year average of 23.48x. The lower multiple means investors are paying less for each dollar of earnings than they have historically. Expected EPS growth of about 8% to 9% annually helps explain why the stock still trades above the sector median of 16.91x.
NextEra’s debt load is another factor. The company has $110.20 billion in debt against just $2.87 billion in cash. That heavy debt leaves less room for error if project costs increase or execution takes longer than expected.
To me, the price looks fair, not cheap. Project Star adds to the story, but it is not enough to justify paying a higher price today.
According to our database, the number of hedge funds holding NextEra increased from 74 at the end of Q1 2026 to 80 at the end of Q2 2026. Meanwhile, short interest stood at 0.00% of float as of September 15, 2026.
Institutional interest is clearly rising, and Project Star could be a strategic win for NextEra. However, with the stock fairly priced and debt still high, investors need more clarity on the financial contribution the project will make.
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