South Korea power demand to surge 25 to 30 gigawatts on AI

The energy minister's interview points to a coming surge in South Korea's electricity demand, rooted in the expansion plans of its two largest chipmakers and a wave of new AI data centers. This targets a power need of 25 to 30 gigawatts, a substantial increase on the current grid. The announcement sets up a potential policy challenge for the country.

This demand is layered on top of an ongoing energy transition, as the country also anticipates higher consumption from the shift to electric vehicles and electric heating. These trends pressure the nation's long-term energy roadmap, requiring a mix of generation sources to meet the combined load. The interview explicitly frames the question of whether to build more nuclear reactors as a decision to be considered within this plan.

The stakes are significant for energy security and the country's economic goals, as reliable power is critical for its high-tech manufacturing sector. The outcome likely hinges on how quickly new generation capacity can be approved and built compared with the projected pace of demand growth. For the chipmakers and data center operators, this timeline will determine their ability to expand operations without facing energy constraints.