AI Boom Sparks Surge in Power Demand! Samsung, SK Hynix Expand Production; Reuters: South Korea Needs 20 More Nuclear Reactors

South Korea's Minister of Climate, Energy, and Environment, Kim Sung-hwan, stated that the country's electricity demand will sharply increase in the coming years, driven by production expansions at major chipmakers Samsung Electronics and SK Hynix, as well as plans to build new artificial intelligence (AI) data centers.

In an exclusive interview with Reuters this month, Kim noted that AI-related power demand alone could increase South Korea's electricity needs by 25 to 30 gigawatts (GW). He also emphasized the need to address rising domestic electricity demand due to the shift from internal combustion engine vehicles to electric vehicles, and from gas heating to electric heating.

The South Korean government plans to release an updated version of its national long-term energy roadmap next month, extending the planning horizon by two years to 2040. A core issue under discussion is whether the country will announce the construction of additional nuclear reactors.

On July 30, 2026, Samsung Electronics' office building in Seoul, South Korea. (Reuters)

Regarding how many more nuclear reactors South Korea might need, Kim said the matter is under expert review and he refrained from commenting personally. However, he stressed that nuclear power is "an essential element in considering the structure of our energy mix."

If the additional 25 to 30 GW of electricity demand from AI were to be fully supplied by nuclear power, this would be equivalent to the capacity of approximately 20 nuclear reactors based on current South Korean design standards.

South Korea, Asia's fourth-largest economy, currently operates 26 nuclear reactors, with nuclear power accounting for less than one-third of the country's electricity demand.

Samsung Electronics and SK Hynix have committed to building new factories in southwestern South Korea as part of a government-announced "mega-project" worth 800 trillion won (approximately $590 billion).

Kim stated, "Projects originally planned for around 2045 have been significantly accelerated and are now expected to be completed in the early 2030s."