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Gov’t considers building more nuclear reactors to meet chip, AI power demand
Minister of Climate, Energy and Environment Kim Sung-hwan delivers a lecture at the Gwacheon branch of the National Human Resources Development Institute, in Gyeonggi Province, Thursday. Courtesy of Ministry of Climate, Energy and Environment
By Lee Hyo-sik
The government should quickly review plans to build additional nuclear reactors to meet rapidly growing electricity demand from semiconductor manufacturing complexes and artificial intelligence (AI) data centers, Minister of Climate, Energy and Environment Kim Sung-hwan said Friday.
Kim said the issue needs to be addressed as soon as possible because the government plans to finalize its 12th basic plan for long-term electricity supply and demand ahead of the regular parliamentary session later this year.
"Semiconductor production requires a stable supply of electricity around the clock, making it similar to a baseload power source," Kim said in an interview with MBC Radio. "It will not be easy to meet the growing demand with renewable energy alone, so we need to promptly examine whether additional nuclear reactors should be built."
Kim said the semiconductor clusters planned in Yongin, Gyeonggi Province, and the southwestern region of the country will require electricity equivalent to the output of about 15 nuclear reactors with a capacity of 1.4 gigawatts each.
Regarding potential sites for new reactors, Kim said there is enough land to build two additional reactors at the Hanbit Nuclear Power Plant in Yeonggwang, South Jeolla Province, and two more in Ulju, which is part of Ulsan. He added that any decision would need to consider acceptance by local residents and the public.
Kim said the currently planned scale of the semiconductor cluster in the southwestern region could be supported through a combination of power from the Hanbit plant, renewable energy sources and some conversion to liquefied natural gas generation.
The minister also addressed concerns about water supply for industrial facilities, saying more than 1 million tons of water could be secured through measures including the use of existing dams in the Seomjin and Yeongsan river basins, redirecting water channels and recycling treated wastewater.
On electricity pricing for AI data centers, the minister said the government is considering introducing a dedicated electricity rate system. He said the current pricing structure places data centers under general commercial electricity rates rather than industrial rates, making it more difficult to attract foreign investment.