The South Korean government has officially signaled it will consider building more nuclear power plants to handle the surging electricity demand of the AI era. This move points to a significant strategic shift in the country's long-term energy policy.
The core reason for this potential expansion is the explosive growth in electricity consumption driven by AI and data centers. Recent government forecasts, using a new methodology based on GPU and server counts, project that data centers alone will consume 26.5 TWh of electricity by 2040. The nuclear capacity already planned under the 11th Basic Plan—two large APR-1400 reactors and one Small Modular Reactor (SMR)—is expected to generate about 27.6 TWh annually. This means current plans just barely cover the projected demand from data centers, leaving little room for any faster-than-expected growth in the AI sector.
This policy shift didn't happen in a vacuum; it's the result of several converging factors. First, the demand signal became undeniable. A special law passed in May 2026 fast-tracked the development of AI data centers, while a government committee officially raised its long-term electricity demand forecast in April. These actions institutionalized AI-driven power consumption as a core planning assumption.
Second, the groundwork for a supply-side response was laid. In mid-June, candidate sites for the nuclear reactors planned under the 11th Plan were selected, demonstrating tangible project momentum. Concurrently, a proposal to merge the five state-owned power generation companies into a single entity is under review, which would streamline the execution of massive projects like new nuclear plants.
Finally, external pressures are making nuclear power more attractive. Global energy market volatility, particularly in liquefied natural gas (LNG) prices, increases the value of nuclear power as a stable, domestically-fueled baseload energy source. This move is not a sudden reaction but a calculated response to a confluence of technological, legislative, and economic trends shaping South Korea's energy future.
- Baseload Power: The minimum level of electricity demand required over a 24-hour period. Baseload power plants, like nuclear, run continuously to meet this constant demand.
- SMR (Small Modular Reactor): A type of advanced nuclear reactor that is smaller than conventional reactors and can be factory-built and transported to a site for installation.
- 12th Basic Plan for Electricity Supply and Demand: South Korea's top-tier national energy plan that forecasts long-term electricity demand and outlines the corresponding plan for power generation facilities and the grid.