South Korea's Power Demand Skyrockets on Semiconductor and AI Boom; Nuclear and Grid Expansion Urgently Needed

South Korea faces a critical juncture in securing sufficient electricity to power its burgeoning semiconductor and artificial intelligence (AI) industries. The government's latest long-term power demand forecast reveals a dramatic increase, projecting a need for 165 million kW of maximum power by 2040. This figure is 26.8 million kW higher than previous estimates, a surge equivalent to the capacity of 19 large nuclear reactors.

The demand is heavily concentrated in "mega projects" such as semiconductor industrial complexes in Honam and Yongin, and AI data centers. These advanced industries are expected to account for 20.6 million kW and 7.9 million kW of the increased demand, respectively. This reflects the high stakes for companies investing heavily in these sectors to remain competitive globally.

Officials acknowledge that the pace of AI investment could accelerate demand even further. The report suggests that relying solely on renewable energy sources like solar and wind power will be insufficient to meet this escalating need. The government's plan, outlined during a public hearing for the 12th Basic Plan for Long-Term Electricity Supply and Demand, underscores the urgent necessity for expanding nuclear power and transmission networks to ensure the nation's advanced industrial future.