AI boom to drive South Korean power demand, nuclear expansion under review

South Korea's energy minister, Kim Sung-whan, has said that the country's power demand is set to surge in the coming years, driven by the expansion plans of chipmakers Samsung Electronics and SK Hynix, as well as the construction of new AI data centres. In an interview, Kim estimated that AI-driven power needs alone could lift demand by 25 to 30 gigawatts (GW).

Additional demand will come from the transition to electric vehicles and electric heating, he noted. The comments come ahead of the government's update to its long-term energy roadmap, expected next month, which will extend the plan to 2040. A key question is whether the roadmap will include new nuclear reactors.

Kim declined to specify how many reactors might be needed, saying experts are reviewing the matter. He described nuclear energy as an essential element in the country's power generation mix. If the additional 25-30 GW were met entirely by nuclear power, it would require roughly 20 reactors of the current South Korean design.

South Korea currently operates 26 nuclear reactors, which supply just under a third of its electricity. The country also relies on coal (29%) and gas (27%), while renewables account for 11%. The government aims to phase out its 60 coal-fired plants by 2040, though some may be retained as emergency backup.

Samsung and SK Hynix, key suppliers for AI infrastructure, have pledged to build new factories in the southwest as part of an 800 trillion won ($590 billion) mega project. Kim said projects originally planned for around 2045 have been accelerated to be completed by the early 2030s.

Several U.S. tech companies, including Nvidia, have expressed interest in building data centres in South Korea due to its reliable power supply, Kim said. While the country aims to boost renewables, nuclear remains unavoidable for now despite safety concerns.

Public opinion is divided: a state-run poll found 79% support for including new nuclear plants in the roadmap, but a civic group in Ulsan, a potential site, has collected over 10,000 signatures opposing additional reactors. Kim said the planned chip cluster in the southwest would not require a new plant, as six reactors already operate there alongside solar and wind farms. Instead, regions like Seoul may need additional solar or LNG plants to meet demand.