South Korea’s AI boom: Power demands soar, prompting consideration of new nuclear reactors
South Korea is experiencing an AI boom that could significantly increase the country's electricity demand. According to Energy Minister Kim Sung-hwan, this additional demand is estimated to be 25 to 30 gigawatts, roughly equivalent to the power generated by 20 nuclear plants.
The Government's Dilemma
The government now faces a crucial decision: whether to build new nuclear reactors to meet this growing energy need. This decision comes as part of an updated long-term energy roadmap, set to be released next month and extended to 2040.
Accelerated Chip Fabrication Plans
What has accelerated this debate is the forward movement of semiconductor fabrication plants (fabs) by tech giants like Samsung Electronics and SK Hynix. Initially planned for completion around 2045, these fabs are now scheduled to be operational by the early 2030s.
Revised Energy Forecasts
The updated energy roadmap projects peak demand in 2040 between 158.4 and 165GW, a substantial increase from the previous estimate of 131.8 to 138.2GW in April. This gap highlights the need for approximately 19 additional APR-1400 reactors.
Industrial Growth Drivers
The primary drivers of this demand are:
- Semiconductor Manufacturing: Accountable for approximately 24.3 to 24.6GW, a significant jump from the earlier estimate of 3.7 to 4GW.
- AI Data Centers: Projected to require 11.9GW of power, almost triple the initial estimate, based on unverified corporate submissions.
Debates and Counterarguments
Some, like Han Ga-hee from Solutions for Our Climate, express concern about overinvestment based on uncertain data center requests. Others argue that nuclear energy is essential to meet the grid's load patterns, especially with the rapid growth of advanced manufacturing and AI.
Seoul National University's Kim Hee-jip emphasizes the strategic importance of ensuring sufficient power supply to support South Korea's technological ambitions.
Currently, South Korea operates 26 nuclear reactors, supplying approximately one-third of its electricity. Coal and gas contribute to 29% and 27% respectively, while renewables lag behind with only 11% share in the OECD.