South Korea has selected Yeongdeok county in North Gyeongsang province as the site for two new large nuclear power plants and a small modular reactor, adding 3.5 gigawatts of generating capacity as the country moves to meet surging electricity demand from AI data centers and high-tech industry.
Korea Hydro and Nuclear Power announced the decision on Monday after a months-long competition between Yeongdeok and Ulju county in Ulsan. The evaluation committee, composed of external experts, assessed the candidates on land adequacy, environmental suitability, construction feasibility, and community acceptance. Yeongdeok scored highest across the composite criteria.
AI Data Centers Drive Demand Surge
The nuclear expansion is being driven in part by a dramatic revision in South Korea’s electricity demand forecasts. A preliminary plan released by the Ministry of Climate, Energy and Environment in April projects national electricity consumption will reach 694.1 terawatt-hours by 2040, a 26% increase from last year’s 549.4 TWh. Demand from AI data centers, semiconductor clusters, electric vehicles, and electric heating now accounts for 21% of projected growth, up from just 10% in the 11th Basic Plan published two years ago.
The 3.5 GW of new nuclear capacity would cover roughly 35% of Seoul’s peak electricity demand of about 10 GW. At a seminar in Seoul on August 15, a coalition of nuclear engineering professors argued that the upcoming 12th Basic Plan, due by year-end, should include at least three additional large reactors and two SMRs beyond the current Yeongdeok commitment.
Yeongdeok Edges Out Ulju Despite Infrastructure Gap
Ulju county, located near the existing Saeul Nuclear Power Plant, offered the advantage of established transmission infrastructure and available land with minimal relocation concerns. However, the site faced significant community opposition, including a signature campaign by the Ulsan Pan-Citizens’ Countermeasures Committee that gathered support for 100,000 signatures against the project.
Yeongdeok, by contrast, benefited from strong local backing. A February survey of 1,400 residents found 86% in favor of hosting the plants. County Governor-elect Cho Joo-hong campaigned explicitly on attracting nuclear investment, promising to use the energy industry as a growth engine for jobs and local economic revitalization.
Experts also highlighted Yeongdeok’s proximity to POSCO’s steelmaking operations in nearby Pohang. POSCO’s transition to hydrogen-based reduction steelmaking, necessary to reduce carbon emissions, will require massive amounts of clean electricity. An estimated 3 to 4 million tons of hydrogen will need to be produced annually by 2040 to maintain current production levels.
The site also offers room for future expansion. “Yeongdeok has the advantage of having enough land to build several nuclear power plants in the future,” said Chung Yong-hoon, a professor of nuclear and quantum engineering at KAIST. While new transmission infrastructure will need to be built, academic assessments suggest the effort will be relatively modest compared to the grid investment required for equivalent renewable capacity.
South Korea’s nuclear program had been effectively frozen since 2018 under a previous government’s de-nuclearization policy, delaying projects by up to 14 years. The Yeongdeok decision signals a decisive return to nuclear expansion as the country confronts both energy security challenges from the Middle East conflict and the power demands of its rapidly growing AI and semiconductor sectors.
Sources: MK Maeil Business Newspaper; Korea Hydro and Nuclear Power; Ministry of Climate, Energy and Environment (South Korea); KAIST
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